on’s (NRF) Big Show Asia Pacific in Singapore on Tuesday.  But for Kim, who oversees a network that spans department stores, supermarkets, home shopping platforms and international malls, the shift isn’t just about moving from brick to click. It’s about redefining what customers value and rebuilding their trust in an increasingly automated, choice-saturated world. From selling to convincing “I tell my team that the definition of retail is not about selling anymore to customers, but retail is all about how you convince customers to buy from you,” Kim shared.  According to the executive, Lotte’s reinvention began not in a data centre or tech lab, but with structural introspection. “We aligned the organisation around the idea that we can all sell together and challenged ourselves to build the capabilities required in this digital era,” he said.  “Our focus was on strengthening business fundamentals, improving freshness in our grocery stores, enhancing luxury experiences in our department stores and creating short-form videos for our home shopping platform. Then, we examined our portfolio to understand where to invest more and where to optimise.” In Korea’s hyper-connected retail landscape, the more urgent challenge is to make retail feel human again. For Lotte, that starts with building authentic relationships with its 43 million loyalty program members.  According to Kim, it’s not about the next promotion or the next brand, but it’s about starting with the fundamental way that customers’ needs and wants come before anything else.  “We live in interesting times, and there are uncertainties. Supply chains are potentially getting disrupted, and yet value is so important to the customer, as it should be in our line of business,” Kim said.  At the heart of this effort is what Kim calls a redefinition of value, one that goes beyond low prices. That philosophy is embodied in Lotte’s growing portfolio of private-label brands like Yorihada (ready-made meals) and Plux (affordable appliances), as well as in its AI-driven personalisation engines that match customers to products.  Strategic partnerships have also been key to replicating Lotte’s DNA abroad.  “It would be very constrained or limited if we tried to do this by ourselves,” Kim said. “We have a very strong base in Vietnam and Indonesia. But as Korean products and experiences are being sought after in other countries, we find that we could serve customers better by finding the right partners.” In Singapore, the company partnered with FairPrice Group to launch the store-in-store concept dubbed ‘Lotte Mart Express’ at FairPrice Xtra at VivoCity. The store is home to more than 700 Korean brands, including more than 180 exclusive products.  Foreable challenges Yet home turf presents new headwinds. Korea’s economy faces currency pressures and trade uncertainties, but its most intractable issue may be demographics. This year, 20 per cent of the population will be 65 or older, a milestone that shrinks the domestic market while altering its needs. “This means we have a population decline that’s creating constraints on our market size. When I look across Asia, I think the diversity of our customer base also makes it challenging for us as retailers to find ways to meet their varied needs,” Kim said.  Meanwhile, the regional customer base grows more diverse and demanding. For Lotte, meeting those expectations means constant experimentation, including implementing new technologies.  “We’ve done a lot in this space, including setting up labs,” he said.  “We have implemented this with our Lotte Liquor. If you type in what you’re having at a restaurant tonight, it can help match the best food and wine pairings. We’ve also done this with Hi-Mart electronics chain. “When you are shopping for appliances, it’s very tricky, because you don’t know whether to choose one TV over another or one appliance over another. If they offer different features, are they really worth the value? If you type in features you want to know, like a price range, it can give you options. That helps our customers to make the best value choices.” The company is now looking into expanding its AI capabilities. Rather than build everything in-house, Lotte invites partners into an open innovation ecosystem.  “We’re creating what we call the Lailac Centre, which stands for Lotte AI Lab Alliance and Collaborators,” Kim said.  “Investment would be too costly if we did all the points on our own, so we are working more as an open book and with the right partners.”  The ground game  Even with the growing importance of digital technologies, Kim insists on the core value of physical retail experience.  “Whether it’s offline or online, I think it’s always important to understand and put your feet on the ground,” Kim said.  “Given even the demands of my job, I’m probably out in the stores every couple of weeks to make sure I visit different parts of the country, different formats of our stores as well as competitor stores. I also want to make sure that we’re all with our team members, particularly those who are on the front line working with customers. Because obviously, we all sit in offices and can lose perspective.”  This philosophy plays out in Southeast Asia especially in Vietnam, where Lotte’s expansion is less about market share and more about relevance.  The group’s premier development Lotte Mall Westlake Hanoi attracted more than 10 million visitors within a year after the opening in 2023. Nearly 40 per cent of the brands housed in the complex were new to the country.  “Retail isn’t theoretical. It’s all about being real and on the ground,” he remarked.  Retail’s next chapter When asked what excites him most about the future, Kim didn’t mention drones or cashierless stores. Instead, he returned to the customer.  “We need to focus on continuing to invest in the environment in which they want to shop, whether it’s offline or online, whether it’s the excitement that you want to create,” he said, emphasising the importance of providing the best value for customers’ time.  “Shoppers have way too many choices; they can go to way more retailers in town. What that means is that we need to provide higher standards to meet their expectations and ensure that we do our best to create value and experience. It’s not about the transaction, but it’s about the shopping experience,” he concluded.  Further reading: Asia’s influence and innovation in retail take centre stage at NRF’25.