The strategy of treating 'shareholders as customers' is gaining traction in the retail sector. Companies are moving away from cash dividends and are instead offering tangible benefits such as discounts at their stores, point accumulation, and exclusive memberships to engage shareholders.
According to industry sources, Lotte Shopping will implement its shareholder benefits program, 'L. Honors Club,' starting November 1. This marks the first time a major South Korean corporation has introduced a dedicated membership for shareholders.
Shareholders holding at least one share will receive discount coupons ranging from 10% to 20% for use at Lotte Department Store, Lotte Mart, and its e-commerce platforms upon initial registration. They will also earn L.POINT rewards based on their purchase amounts. Long-term shareholders holding over 1,000 shares for more than a year will enjoy additional perks, including access to department store lounges, valet parking, supermarket discounts, and free delivery.
Benefits will be updated every three months based on the shareholder registry at the end of each quarter. The first round of benefits will apply to shareholders as of the end of September. Lotte Shopping aims to expand its return policy from cash dividends to more tangible shopping benefits, fostering long-term relationships with its shareholders.
The food and beauty sectors are also adopting shareholder benefits. Samjin Foods introduced its shareholder benefits service last month. By verifying their shareholder status through mobile trading systems from Shinhan, KB, Kiwoom, and Hana Securities, shareholders can receive a 10% discount on assorted fish cakes and meal kits from Samjin Eomuk's official online store.
In August, beauty company Dalba Global launched a web-based exclusive store for shareholders. Shareholders holding at least one share can join, with discounts varying based on the number of shares held and the duration of ownership. This initiative goes beyond existing mobile trading system-based shareholder discount services by creating a dedicated sales channel for shareholders.
Earlier, Ottogi also began offering shareholder benefits. Customers holding Ottogi shares can receive a 20% discount on food purchases at Ottogi Mall after verifying their shareholder status through their brokerage's mobile trading system.
Abroad, shareholder benefits have already become a common shareholder management tool. According to Nikkei Research, about 40% of listed companies in Japan had shareholder benefits programs as of August last year. Among individual investors in Japan, 35.6% cited 'to receive shareholder benefits' as a reason for purchasing stocks.
Retail and food companies are actively pursuing shareholder benefits because they can directly utilize their products and sales networks. Unlike cash dividends, discount coupons or exclusive stores can attract shareholders as customers and encourage repeat purchases. This approach allows companies to target both shareholder returns and marketing simultaneously.
An industry insider noted, "Consumer goods companies can link shareholder benefits to their products or store usage, allowing them to enhance both shareholder returns and customer loyalty. As individual shareholders increase, more companies may consider implementing similar shareholder benefits programs, as seen in Japan."
* This article has been translated by AI.
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