SKT to boost commerce biz with subscription platform

The Korea Times

The Korea Times

Business

Sun, December 3, 2023 | 19:58

Tech

SKT to boost commerce biz with subscription platform

Posted : 2021-08-25 16:48

Updated : 2021-08-25 19:02

SK Telecom (SKT) Mobile Network Operations President Ryu Young-sang speaks during an online press event held to introduce the company's new subscription platform "T Universe," Wednesday. Courtesy of SKT

'T Universe' to launch in partnership with Amazon, Google, big local brands

By Kim Bo-eun

Korea's top mobile carrier SK Telecom (SKT) has its eyes on becoming a part of its users' daily lives, on the same level as platform giants like Google, Facebook and Microsoft.

SKT said Wednesday it is launching a package of subscription services, in a bid to expand its user base in a variety of sectors, and that it will offer these services under the brand "T Universe" on Aug. 31, in partnership with global firms such as Amazon and local brands including Emart and Baedal Minjok.

"SKT has been in the telecom business for 35 years. Integrating technology such as artificial intelligence (AI) with SKT's retail channels, customer service experience and other capabilities, we believe the company can sufficiently serve in the role of a commerce platform," Ryu Young-sang, head of the company's mobile network operations division, said in an online press event introducing the subscription platform.

As working from home has become the new major trend for many and moving back to working in the office looks unlikely, moving the conventional workplace online effectively is emerging as a key trend. By riding this wave, SKT is seeking to capture opportunities amid the expansion of e-commerce during the pandemic. Plus, SKT predicts a rising trend among younger consumers signing up for companies offering diverse goods and services, from cosmetics to mobility.

A core part of the platform is Amazon Global Store, which will be added under a menu on SKT's online retailer 11Street on Aug. 31. SKT claimed this is the first case of Amazon entering a new market in a partnership with a local firm.

SKT said shoppers on its in-house 11Street mobile platform will be able to purchase Amazon US products, delivered in six to 10 days.

11Street CEO Lee Sang-ho said 160,000 products most frequently purchased by Korean consumers will be delivered within four to six days, as Amazon has set up a logistics center in western parts of the U.S. that expedite international delivery.

Online shoppers will be able to view product information in Korean and pay in Korean currency via 11Street's easy payment tool. SKT said 11Street will operate a customer service center dedicated to purchases on Amazon Global Store.

The image shows brands that have partnered with SK for its subscription platform 'T Universe' / Courtesy of SKT

Members of the new subscription service will get benefits such as free shipping, cash-equivalent points that can be used on 11Street and access to the cloud service Google One. Members will also be able to select coupons issued by brands including Starbucks and Paris Baguette. The range and details of services will vary depending on the subscription fee.

The company has also joined hands with local startups such as Kukka, which sends seasonal flowers under subscription and Toun 28, which delivers body and skincare products. In addition, T Universe members will be able to access media service provider Wavve's content and Flo's music streaming services. SKT said it is in talks with around 100 more firms to expand services on its subscription platform.

SKT plans to open 1,000 offline stores by the end of next year to promote its subscription services. The stores will be designed so that visitors can learn about T Universe via smart tables. The top carrier and its affiliates currently have a combined 50 million monthly active users. SKT is aiming to secure 36 million T Universe subscribers and 8 trillion won in annual gross merchandise value by 2025.

"Instead of a profit margin, we are thinking about expanding customer services and believe that new business models will emerge in the process. Margin is not a priority at this early stage," Ryu said.

bkim@koreatimes.co.kr