The South Korean department store industry is accelerating the development of 'hyper-personalized' custom services using Artificial Intelligence (AI). Leading this trend, Hyundai Department Store is drawing attention by expanding its AI shopping assistant, 'HEYDI,' to domestic customers.
Hyundai Department Store officially launched the integrated domestic and foreign version of HEYDI across all its department stores and outlets on the 19th, just three months after its initial launch for foreigners in July. HEYDI is a generative AI service that aggregates store information such as brands, restaurants, and events, proposing tailored offline shopping itineraries based on individual customer preferences.
During its foreign-only operation, HEYDI recorded an average of 9,000 uses per month, with requests for 'shopping course design' being particularly prominent. Inquiries regarding gift and restaurant recommendations were also frequent. The integrated version enhances 'hyper-personalization' by providing more detailed recommendations for brands, products, and reasons for selection, based on the customer's gifting purpose, price range, and the recipient's gender, age, and preferences. Hyundai plans to further refine the curation by expanding integrated data, including online/offline purchase history, shopping cart data, and location information.
Competitors are also focused on advancing their AI-based services. Earlier this year, Shinsegae Department Store collaborated with Seoul National University's Graduate School of Data Science to develop 'S-Mind 4.0,' an upgraded version of its existing AI customer analysis system. S-Mind 4.0 aims for ultra-precise personalized service by analyzing not only simple purchase history but also customer lifestyle, interests, and consumption patterns to recommend products and lifestyle content like travel and art.
Lotte Department Store, in June, introduced 'BI Agent,' an AI-based intelligent analysis system, in partnership with the data analysis company Stratig. This system combines the global platform 'Stratig One' with Lotte Department Store's internal customer analysis system, expected to enable intelligent analysis based on customer data for personalized brand discovery, marketing planning, and service proposals.
South Korea's major department stores are revolutionizing the offline retail experience through AI, intensifying the competition for customer-centric services and anticipating the dawn of a new shopping culture.
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