Lotte Himart enhances customer service to boost sales

[Courtesy of Lotte Himart]

Lotte Himart Co., an electronics retailer under South Korea’s Lotte Group, has expanded its customer service range to include maintenance and insurance as it seeks to lure consumers to make more purchases amid stagnant sales.

According to Lotte Himart on Sunday, the annual average home appliance purchase per person at the retailer stood at 1.7, slightly more than half the purchases at overseas retailers. Fewer purchases usually lead to limited chances for sales growth.

Lotte Himart’s sales reached 3.33 trillion ($2.48 billion) won last year, trailing behind those of Samsung Store, an electronic retailer under Samsung Electronics Co, which earned 3.4 trillion won in sales. Samsung Store beat Lotte Himart in sales for the first time last year.

LG Best Shop achieved sales of 2.69 trillion won during the cited period.

As part of efforts to boost sales, Lotte Himart has engaged in efforts to offer a variety of services such as repair and insurance, with an aim to become a provider of the so-called “home total care service.”

Manufacturers typically provide one to two years of after-sales service (AS) for home appliances. However, Lotte Himart extended this period to five years by introducing extended warranty insurance.

Customers pay an upfront fee ranging from 7,000 to 70,000 won, depending on the appliance’s cost, and in case of a breakdown, the company provides compensation of up to 5 million won.

The extended warranty covers 16 categories, including high-priced items like refrigerators and air conditioners, as well as smaller appliances like rice cookers.

The local retailer offers a cleaning service to remove air conditioner pollutants and clean food residues from refrigerators, aiming to provide comprehensive assistance to its customers.

Along with efforts to bolster offline service capabilities, Lotte Himart also aims to enhance its online shopping platform.

Earlier in the year, the company initiated a collaborative project with Lotte Group’s online shopping mall, Lotteon. The company also hired professional staff in May to reinforce its online market presence.