KT to launch joint venture for instant delivery service for online shopping shows

By Kim Joo-heon Posted : July 11, 2022, 11:13 Updated : July 11, 2022, 11:13

[Courtesy of KT]

SEOUL -- For the first time, KT Alpha, a commerce wing of South Korea's major telecom company KT, will start an "On-Air Delivery" service, an instant delivery service that can receive orders and deliver products while live online shopping shows are broadcast. The service will be launched through a joint venture with Oasis Market, a domestic overnight delivery platform operator specializing in fresh grocery items.

Live commerce is an online shopping content format where show hosts sell products while interacting with viewers' messages in real-time. Sometimes, show hosts hold surprise events and offer generous gifts to customers watching live shows to attract more viewers in real-time. Overnight delivery service is based on local self-owned logistic warehouses filled with selected products that are frequently sought by consumers. Normally, products are delivered in the morning the next day. 

KT Alpha said in a statement that the joint venture called "Oasis Alpha" will be launched in the second half of 2022 with a starting capital of 10 billion won ($7.7 million). Using Oasis Market's cold chain infrastructure for delivery and storage and KT Alpha's broadcasting know-how, the joint venture will offer instant delivery services for products that are sold through live commerce shopping shows. 

KT Alpha will create various show content to sell grocery items. Oasis Market will be in charge of the operation and expansion of logistics centers and sales linked to offline stores. On-Air service will start in full swing in the first half of 2023.

"We will continue to expand our areas of business by developing green foods and local foods targeting millennials and Generation Z who are highly interested in healthy foods," KT Alpha’s CEO Chung Kee-ho said in a statement on July 10. The company will also provide diet-related services for viewers. 

South Korea's online shopping market is projected to stand at 224 trillion won in 2022. Companies such as SSG.com, the online shopping wing of retail giant Shinsegae Group, are providing overnight delivery services by operating fulfillment centers, which are urban-type logistic hubs. SSG.com is known for Emart, Shinsegae's hypermart wing that directly delivers products through an instant delivery service. 
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