Lotte Department Store is targeting foreign tourists by utilizing generative artificial intelligence (AI) like ChatGPT to answer travel itinerary questions instead of relying on traditional search engines.
The AI will be programmed to accurately provide information about Lotte Department Store locations and exclusive benefits for foreigners when recommending shopping spots and tourist attractions in Seoul. Additionally, outdoor advertisements will be deployed at Incheon International Airport and key tourist areas to encourage AI searches.
On August 5, Lotte Department Store announced plans to expand its generative AI-based marketing, connecting foreign tourists from travel preparation to their stay in Korea and visits to stores.
According to a report released in March by the global travel market research firm Focusrite, 56% of global travelers reported having used generative AI at least once when planning their trips, with the figure rising to 72% among Generation Z.
Initially, Lotte Department Store will implement 'Generative AI Search Optimization (GEO)' during the travel preparation phase. This involves restructuring content so that when users ask generative AI about 'good shopping places in Seoul' or 'indoor tourist attractions near Jamsil,' information about Lotte Department Store and shopping benefits will be naturally included in the responses.
While traditional search engine optimization aimed to rank high in search results, GEO focuses on changing the format of data and content so that generative AI can accurately interpret and utilize brand information in its responses. The strategy is to present Lotte Department Store as an option from the moment foreign tourists book flights or plan their itineraries.
The project involves a retail AI solution task force established through Lotte Group's internal venture program, 'Unicorn Valley.' This team has developed a proprietary solution called the 'Golden Note Index' to structure brand information in a way that generative AI can easily understand.
Using the Golden Note Index, Lotte Department Store will optimize information about store locations, exclusive benefits for foreigners, and tourist content in four languages: English, Japanese, simplified Chinese, and traditional Chinese. The goal is to organize scattered information on web pages into a format that AI can read, reducing inaccuracies in store hours, locations, and shopping benefits.
For foreign tourists currently traveling in Korea, Lotte Department Store will collaborate with Daehong Planning to launch outdoor advertisements. These ads will be placed in high-traffic tourist areas such as Incheon International Airport and Seoul's Seongsu and Hongdae districts to promote AI searches.
When tourists see these ads and search for terms like 'shopping benefits in Seoul' or 'places to visit in Seoul on a rainy day,' they will be directed to information about the 'Lotte Tourist Membership,' nearby store details, and tourism and shopping content at Lotte Town Jamsil. The aim is to connect AI searches with actual store visits and purchases.
Lotte Department Store is also enhancing the foreign language capabilities of its AI shopping chatbot, 'Dustin.' Since April, it has introduced services in English, Japanese, simplified Chinese, and traditional Chinese, providing guidance on not only department store products but also surrounding tourist attractions in the user's preferred language.
QR codes that allow direct access to Dustin have been placed in stores with high foreign visitor traffic. In the future, the plan is to add voice recognition features, enabling tourists to find shopping information without having to type on their smartphones.
Park Sang-woo, head of marketing at Lotte Department Store, stated, “We will continue to expand shopping information and customer experiences optimized for the AI era, providing a global shopping experience worthy of being Korea's representative department store.”
* This article has been translated by AI.
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