Marketing Trends and AI Innovations for Year-End Sales

Companies are diversifying their offerings and adopting AI to adapt to changing consumer behaviors and economic challenges.

### Trends in Marketing, E-commerce, and AI Innovations
* 👋 Thank you for joining us today; as we approach the end of the year, many companies are gearing up for **significant marketing campaigns**, particularly for **Black Friday and Singles' Day**.
* 🎃 With Halloween behind us, businesses are shifting focus to the upcoming holiday season, with many **launching their marketing efforts earlier** to **capture consumer attention**.
* 📈 Companies like Dongwon Industries are leveraging AI technology to enhance their operations, such as using **drones for tuna fishing**, while Hyundai Department Store has introduced **AI-driven personalized services**.
* 🛍 The retail landscape is evolving, with brands like CJ ENM diversifying into **cosmetics and health supplements**, while Lotte focuses on **importing overseas brands and health products**.
* 📉 Recent trends indicate a decline in home shopping profitability, with Lotte Shopping reporting operating profits of only **8.3 billion won**, highlighting a broader downturn in the TV shopping industry.
* 🎄 As we enter November, retailers are already preparing for Christmas marketing, utilizing **media façades and early promotions** to attract consumers amid a **challenging economic climate**.
* 🌶 A notable food trend is the **increasing popularity of spicy-sweet flavors** in American cuisine, with gochujang gaining traction, illustrating the **evolving tastes of consumers**.
* 🤖 In the tech sector, AI is advancing rapidly, with Kakao's new AI assistants, Kana and Nana, designed to provide **personalized experiences**, reflecting the **growing importance of hyper-personalization** in various industries.

Hello everyone. Today is Monday, October 28th, and I will begin our broadcast. To those who are new, welcome! I hope everyone is doing well as we enter the last week of October. It's already 8:02, so let's get started with the prepared content. Once again, welcome to the newcomers, and thank you, Lua, for being the first to join us. Are you managing well at work? It feels like we just entered the second half of the year, but now November is just around the corner. The weather has also become quite chilly. As we approach the end of the year, I remember worrying about how to use up my remaining vacation days. I used to think about when I would use them, especially since I was always busy and couldn't take proper vacations. I remember wondering how I would use up the remaining days. Now, we are already in the last week of October. Let's proceed with the discussion.

I'll start in one minute. As more people arrive, let me mention that since we are approaching November and December, there are many year-end events and marketing campaigns, such as Black Friday, happening recently. Shall we proceed? Yes, we will begin the marketing trend broadcast on Monday morning, October 28th. The first article I have prepared, as mentioned, is about companies that are getting ready for marketing in November and December. Halloween has passed, and currently, it's quite challenging to market Halloween in our country. Therefore, most companies are focusing their marketing efforts on November and December. With November bringing Black Friday and the Chinese Singles' Day, many are intentionally starting their campaigns a bit earlier to avoid that period.

There are cases where it fits and cases where it doesn't. Now, let's look at the first article: the biggest shopping festival of the year begins in November, kicking off fierce competition in online retail. As you may know, Black Friday is the largest discount event of the year, and with major shopping events like China's Singles' Day on November 11, November is packed with the year's biggest shopping occasions. Online shopping malls are gearing up for a fierce competition. In South Korea's e-commerce sector, companies like 11st and Gmarket are mentioned as key players, and they are said to be competing based on price competitiveness. It seems that AliExpress will also hold significant events for Singles' Day. Previously, Gmarket accepted applications from sellers to offer discounts, but this time, they are being very selective, granting participation only to sellers who meet specific competitive pricing criteria.

It is said that they sell products at prices below a reasonable standard price based on the average and lowest prices. This means they aim to have actual price competitiveness. Gmarket is developing a price verification algorithm to filter participating products by category. Gmarket appears to be primarily focusing on price. 

11st is also gearing up for its biggest annual event, the Grand 11th Sale. In fact, 11st holds sales every month on the 11th. However, the event in November is referred to as the Grand Sale. They are securing a large quantity of cost-effective products to enhance customer benefits. However, they are also tightening their pricing strategy significantly. If a product is priced higher than the average price over three weeks, a penalty will be applied. In any case, the focus is on providing benefits to customers.

To pressure the sellers a bit, they need to show that unless they take action now, if they miss this opportunity, the next year will be very tough. How cheaply they can sell good products is a matter of life and death for them. Especially with the current difficult situation of high inflation and prolonged consumption stagnation, price sensitivity has increased compared to the past. Ultimately, the price itself becomes a benchmark for whether or not the sales event will be successful. AliExpress is preparing for Singles' Day on November 11, and it is expected to be a much more intense Black Friday than last year. However, before November, Christmas marketing has already started. Recently, at The Hyundai Seoul, the Christmas preparations were very impressive compared to last year.

The pop-up store has been successful, and there was an advance reservation for the Christmas experience space. Now, department stores are also broadcasting media façades earlier than usual. So, welcome to Christmas and the year-end season at the department stores. This is happening because there is a slight gap after Halloween in October, which allows for an earlier start. There are also forecasts that this is due to poor performance. Due to the economic downturn, the department store industry is creating a year-end atmosphere earlier than in previous years. As consumer sentiment weakens and performance declines, we see a trend of bringing forward the year-end special events through Christmas media façades. Notably, Shinsegae Department Store's main branch comes to mind, as there have been many posts on social media over the years about its media façade, which is usually decorated very elaborately.

This year, what should we do? People always have this sense of anticipation. And at Lotte Department Store, especially the Myeongdong flagship store, due to the prolonged recession, consumers are tightening their belts, and sales are no longer stable. Generally, luxury goods sales have significantly decreased, and many of these sales have shifted online. Therefore, it seems that the industry is pinning its hopes on the year-end, which is typically the peak season. To summarize, as November approaches, Black Friday and Singles' Day preparations are underway, focusing on price as a key element in domestic e-commerce. The retail industry is also putting more effort into Christmas marketing. We are broadcasting on Monday, October 28th, and for those who have just joined us, welcome! Please feel free to say hello in the chat.

I would like to ask you to move on to the next article. Kakao has released an AI, and it's called Kana. It's also referred to as the AI for latecomers. But honestly, does being late really matter? What's important is how well you perform. This seems to be the prevailing attitude. The AI that Kakao has introduced is named Kana, and I will explain what it is later. It aims to read emotions and is focused on hyper-personalization. We will learn more about this Kana, which is not just a single service but consists of two AI assistants: Kana and Nana. However, these two AI assistants have slightly different roles, which I will explain. Kakao unveiled the new AI brand, Kana, at the developer conference If Kakao and announced that it will launch a map service within this year. Kana aims to go beyond the rigid and generic AI assistants and strive to be your closest friend who knows you best. Therefore, it represents the idea of having an AI that truly understands you.

The meaning of Kana is that it is composed of two parts: the game mate Nana and the group mate Kana. Nana provides an optimized personalized experience by remembering conversations from both individual and group chats. This means that Nana can respond to personal requests, like finding good restaurants for me. For example, it remembers the conference schedule and materials discussed in group chats and sends me reminder messages via personal messages so I don't forget. Therefore, Nana continuously cares for me based on my identity and situation.

On the other hand, Kana operates solely in group chats. It quizzes us on the papers we've read in study group conversations and gives us scores. In conversations with a partner, it suggests date schedules and locations. This means that Kana is not just for me; it is involved in group chats where conversations happen between multiple people.

I remember that AI has certain limitations, which can be understood in context. So, we have now launched Nana and Kana. Nana is an inmate, while Kana is a group mate. Nana remembers personal situations and provides information accordingly, whereas Kana engages in conversations with various people to offer diverse information. This is how they can be understood. The app is expected to be released in November or December this year, and it remains to be seen whether people will use it widely. Recently, Kakao has been facing some challenges; the CEO has been arrested, and there have been numerous complaints about billing issues. It seems that there aren't many positive reports coming out. I wonder if there will be a turnaround in the atmosphere. AI is rapidly advancing to the point where it is becoming popular in the domestic market. In the AI industry, as I've heard from someone I know, even a delay of about two weeks in development is significant for AI.

In the industry, they say that this kind of race can be delayed by several months or even up to a year. This indicates a very sensitive situation regarding the evolution of AI. It turns out that we can divide the stages of AI evolution. When we think of AI evolution, we often consider things like ChatGPT, but let's take a look at the stages of how far this evolution can go. Just to put it simply, with a mouse movement, we can search for information. Now, let's look at the table showing the five stages of AI development according to OpenAI. 

The first stage is conversational AI, like ChatGPT. This has already been achieved. The second stage is reasoning. What does reasoning mean? It refers to AI that has human-level problem-solving capabilities, capable of reasoning and analysis. In my view, this is already possible with GPT these days. The third stage is...

According to the conclusion drawn, AI can now take practical actions. It seems to be in a trial phase at the moment. For example, there is autonomous driving, and AI is also being used to help with innovation, invention, and the creation of new ideas in research and technology development. This is also currently being tested. The final stage, which is the fifth stage, is the organization stage. It refers to a model capable of taking over all tasks within an organization. Now, if we ask where we currently stand among the five stages presented, we have reached the third stage, the agent stage. So, while we are somewhat past the growth phase, it seems we are moving towards a sort of maturity. Yes, AI is currently capable of making judgments and taking actions. So, we should be aware that AI can now exist in five stages.

So, when we move beyond the third stage to the fourth or fifth stage, people often fear that moment when they realize, Oh, humans are the ones destroying the Earth. At that moment, there might be a shutdown of all AI systems or a feeling similar to launching a nuclear weapon, which would be catastrophic. 

As I share news about AI, I also wanted to touch on what's happening with Kakao. Recently, I looked into how far we've come. AI is being actively utilized not only online but also offline, and I wanted to introduce a few examples. There was an article in Bizwatch that I had previously mentioned in a broadcast. At Lotte Mart, they are currently using an AI system that measures the sweetness of fruit as it passes through a scanner. This system can determine whether the fruit is sweet or not, and these days, the Shine Muscat grape has become quite a topic of discussion.

The taste is not good. The Shine Muscat is not sweet, so they are now operating in a way that allows for the identification of sweet grapes, specifically sweet Shine Muscats. Next, Dongwon Industries is utilizing AI when catching tuna. When they go out to sea, schools of fish are swimming around, and it's a bit difficult to spot them visually. In the past, they would search from helicopters, but due to the risks of accidents and high fuel consumption, they now use drones to primarily locate the fish. Thus, in the distribution industry, many customized products utilizing AI are emerging. For example, Hyundai Department Store is also mentioned. Hyundai Department Store offers a personalized concierge service called Greeting Butler, which also applies AI technology.

AI's lowest prices are being utilized, and in the retail industry, there is a very strong focus on analyzing customers in an ultra-personalized manner. It seems that AI is being actively used more than in any other industry. It is also widely used in counseling solutions. Last year, when AI was first introduced, I uploaded a video about ChatGPT on YouTube. At that time, people were saying things like, Oh, this is just a passing trend; why are you reviewing this video? Can't you see where it's going? However, when it first came out, I thought to myself, This is different. And indeed, a year or two later, we can see it taking the lead in the industry. We are currently broadcasting on Monday, October 28. For those who have just joined us...

Hello, everyone. While you're watching the video, I kindly ask you to hit the like button. Let me take a sip of water and then we will move on to the next article. Recently, there have been concerns about Starbucks. There are discussions about a management crisis at Starbucks. Some might think that Starbucks is just a coffee brand, but it is also a leading player in the domestic industry. This raises the question of why Starbucks is facing such a crisis. It turns out that this issue is not limited to Korea; the U.S. is also experiencing a crisis. Let's explore the reasons behind this together. Both Korea and the U.S. are facing significant challenges with Starbucks. In the U.S., there are reports of poor performance and bleak forecasts for next year. The competition between stores has intensified, and in Korea, the number of Starbucks locations has become excessive. Nowadays, there are so many Starbucks in Seoul that it has the highest number of Starbucks locations in a single city worldwide.

The city is said to be Seoul. Now, the global number one coffee franchise, Starbucks, is facing a crisis. The global headquarters of Starbucks in the United States has projected poor performance for the 2025 fiscal year. Domestic Starbucks is also struggling with profitability. Let's take a look. Compared to the same period last year, in the United States, sales decreased by 6% and the number of visitors dropped by 10%. In China, there was an 11% decline in the first quarter and a 14% decline in the second quarter. Looking at the quarterly sales growth rates, we can see that since entering 2024, the numbers have consistently shown negative growth. Starbucks in Korea also recorded an operating profit margin of about 5.1% in the first half of the year, but this is still about half of what it was compared to 2021. Currently, there are 137 Starbucks stores in the country, and despite the stagnation in profitability, 100 new stores were opened last year.

When asked why profitability isn't increasing, the reasons become clear. They say that low-cost coffee is the culprit. Simply put, low-cost coffee brands like Baekdabang, Mega Coffee, and Compuz are experiencing tremendous sales growth. While the low-cost coffee market is flourishing, the overall coffee market pie is fixed, leading to a zero-sum game where everyone is just sharing what's available. If you ask people where they want to go for coffee, it used to be places like Starbucks, Tom N Toms, and Hollys, which were the standard choices. Now, coffee itself has become the standard. As a result, instead of Starbucks, low-cost coffee has become the norm, and places to go when you want to enjoy slightly better coffee have changed. This shift means that coffee has transitioned from being a necessity to more of a choice.

There's a certain feeling about this. As a result, there are operational issues; for instance, there are no kiosks, and they have just started using vibrating bells. Whenever they try to sell merchandise, there are always surprises and various challenges. Ultimately, I think the real issue is that the culture and code of how people approach coffee are changing. Starbucks has traditionally emphasized human interaction, calling out to customers and personally delivering drinks. However, recently, they have introduced vibrating bells and kiosks. Consequently, they seem to have lost some of their character, and business is not going well, putting Starbucks in a bit of a double bind. Let's look at the next article. As I have mentioned repeatedly, the economy is quite tough. Many office workers can relate to this, but those who run their own businesses or are involved in commerce also feel it.

You may feel this more deeply, but it seems that this is also the case for large corporations. As a result, there are many layoffs and employment adjustments. It appears that the boundaries of service areas are becoming more blurred, leading to a phenomenon where industrial divisions are collapsing. The first article I brought discusses a case where food companies are not only selling food but also cosmetics and health supplements. The saying selling just food is outdated seems to hold true as food companies are now venturing into cosmetics and even delivery services. There is a trend of diversification in the food industry. The long-term effects of high prices and low growth, along with the changes in the low-margin market, are shaping this trend. For example, beverage companies are now producing cosmetics. Hite Jinro has acquired a cosmetics company and is now entering the cosmetics market.

They say they're creating something, and while it feels a bit sudden, recently, Korea Yakult has launched a fresh food breakfast delivery service. So, this is the direction they're heading. Now, the company that Hite has acquired is a comprehensive food company that manufactures processed foods and retail beer coolers. They have acquired this company. Additionally, the Daesang Group has also been reported to have acquired a health functional food company. Recently, Korea Yakult launched a delivery app called Knock, which is also expanding its delivery services for breakfast and snacks through e-commerce. As such, the rapid push for new businesses in the food industry is due to the saturation of the domestic market, making it difficult to expand profits solely through food. This is why, similar to Musinsa recently venturing into cosmetics and Daiso also entering the cosmetics market, companies are diversifying their offerings.

It's the same for Calido. The truth is that it's becoming increasingly difficult to survive by focusing solely on the industry I was in. As a long-term recession continues, there is a widespread belief that maintaining just one business will not be enough for survival. There are ongoing calls to expand into new businesses or to pursue international expansion. However, this is specific to large corporations, and you shouldn't read this article and think, I should also venture into new businesses. The reason is that new business ventures are only meaningful when there is sufficient competitiveness in one's own industry. Just because large corporations are doing it, it doesn't mean that everyone must pursue new businesses. 

In the case of BHC Chicken, they have announced a change in their mission, aiming not just at chicken but also at dining, including casual dining restaurants and restaurant chains. For instance, Papa John's Pizza is launching Mama Chicken, and so on.

It seems that horizontal expansion is continuing. Due to the economic downturn, it appears that certain aspects of our industry are breaking down. This applies not only to offline but also online sales. You know about home shopping, right? Home shopping is reportedly struggling these days because people are not watching TV. As home shopping is no longer a viable option, companies are making significant efforts to grow their private brands. With the decline in TV viewing populations, the need for business diversification has become stronger. 

In home shopping news, home shopping companies are expanding their private brand businesses beyond their core operations. While they previously focused on exclusive brands sold through their own channels, they are now dedicated to developing their own brands and products to showcase in various sales channels, including commerce and offline markets. Recently, the decline in TV viewership and the slowdown in the home shopping industry have led to new challenges.

It is interpreted as a strategy to diversify the business by finding food products. For example, CJ ENM, which operates CJ OnStyle, is involved in the fragrance brand Taylor Scent Library. Just as there is No Brand at E-Mart, they are creating their own brands. Home shopping is also a distribution channel. Similarly, CJ is successfully creating and managing its own women's wear brand, NaReun. Additionally, they are operating a business that focuses on nurturing brands in Korea. On the other hand, Lotte primarily imports and distributes overseas fashion brands. Therefore, rather than focusing on their own brands, they are mainly engaged in wholesale distribution of imported brands, such as the French fashion watch brand Laps and the French rainwear brand Float.

They now claim to have exclusive distribution rights and are also venturing into health supplements, manufacturing them in-house. Previously, they had only broadcasted through their own channels, but as people are watching TV less, they are focusing on their own brand and licensing brand businesses. Looking at the graph, we can see the operating profits of the four home shopping companies, which rose until 2019 and 2020 due to the COVID period. However, if you look at 2021, 2022, and 2023, Lotte Shopping, for instance, is now barely making 8.3 billion won. It's evident that home shopping is in a decline. It's not just home shopping; the entire TV landscape is transforming into a device for YouTube.

I think there are many changes happening. As a result, in order to survive in the media environment, home shopping has no choice but to sell its own products. Now, we are broadcasting together on Monday, October 28th. Welcome to those who are new; please say hello in the chat, and I would appreciate it if you could give the video a like. Our broadcast is available not only on YouTube but also through podcasts. You can listen on Apple Podcasts, Spotify, and Podbang. Now, let's move on to the next topic. Recently, one of the trends in the U.S. is something called map, which is short for spicy and sweet. The key ingredient here is Korean gochujang. The term map is said to be a combination of spicy and sweet, and it has become popular. To put it simply...

I will take a look and move on. This refers to the trend of spicy-sweet flavors that have taken over American restaurants, with Korean gochujang also becoming popular. CNBC analyzed this year's hot food trends and reported that 10% of the entire restaurant menu in the U.S. is now leaning towards this spicy-sweet trend. Recently, spicy-sweet flavored dishes have gained popularity in American restaurants, with Korean gochujang being used as a key seasoning. The term mapdal has been introduced, indicating that items featuring this flavor combination are taking over restaurant menus. The hottest food trend right now is indeed the combination of spicy and sweet flavors. This term combines spicy and sweet, although it hasn't officially appeared on menus yet, it refers to the rise of sweet and spicy foods.

It is said that certain terms are being used. Recently in the United States, they are primarily mixing the sweetness of fruits with various types of chili powder or gochujang to create a spicy flavor. For example, we are familiar with Shake Shack, which has launched menu items like a Korean-style sandwich or spicy lemonade. So, while the combination of sweet and spicy has always existed, it seems to be gaining more popularity lately. We looked into the trend of spicy and sweet sushi.

Now, let's move on to the next article. Recently, I have brought news from the home appliance industry. From what I know, the recent trend in the home appliance sector is shifting from purchasing to subscription services. Instead of buying appliances for two to three hundred dollars, the number of subscription users has surpassed ten million, according to LG Electronics. Many people are opting for subscriptions, and the second trend is...

It seems like we are talking about single-person households and compact appliances. The third point is that when purchasing home appliances, in the past, functionality and specifications were prioritized. Recently, however, the focus has shifted from functionality and specifications to aesthetics—whether the design is attractive, whether it matches our home, and whether it has a good reputation. This is evident in an article from the Chosun Ilbo titled Living Alone: In a Population of Ten Million, Smaller and Prettier is Better. It discusses the competition among small appliance manufacturers to capture consumers' attention with compact and aesthetically pleasing products as we enter the era of ten million single-person households. Although the trend of downsizing for single-person households has been steady for some time, the competition has intensified to create products that not only fit smaller spaces but also improve performance and contribute positively to interior design. For instance, there are products that are less than 10 cm wide.

Water purifiers, much smaller massage chairs, and similar products are what we're looking at today. If you take a look, the massage chair from Bodyfriend weighs only 65 kilograms, which is a 36% reduction in weight compared to previous models. The same goes for the water purifiers released by SK, which measure just 9.5 cm in width, making them compact. They also come in various colors like blue and pink. For those living alone, induction cookers are becoming very popular, especially in situations where gas stoves are either unavailable or cooking is difficult. These induction cookers are selling quite well these days. In this way, many people are purchasing products that are easy to use even in relatively small living spaces. Furthermore, it's not just single-person households; newlywed couples also prefer these compact appliances. As I mentioned regarding the massage chairs, this trend is quite notable.

The size has significantly decreased, and with the trend of miniaturization and lightweight design, we are now expanding options for interior elements such as colors. In fact, home appliances are no longer just categorized as white goods; they are now available in a variety of styles based on personal preferences. It seems we are moving towards a trend where everything can be chosen according to taste. We have looked at trends in home appliances, and now let's take a look at the last article for today. This article might not be directly related to marketing trends, but I thought it would be beneficial for you to see it. The title of the article is from Donghwa Ilbo: Late-night Shorts: Is Late-night Snacking a Matter of Willpower? The title itself is intriguing, isn't it? It discusses whether staying up late, scrolling through my phone, and succumbing to the temptation of late-night snacks is truly a matter of willpower.

I found out how to fix bad habits. How can I improve the bad habit of consuming my daily life? I used to lie in bed before sleeping, thinking, I'll just watch for 10 more minutes, but then when I realize it, an hour has passed, and I've checked various incidents, news articles, celebrity gossip, and relationship rumors. There’s just so much to look at. Before I know it, I'm staying up late looking at my phone and falling asleep in a tired state. So, why are modern people caught in this dopamine addiction? It would be great if we could just cut it off in an instant as we intend, but eliminating bad habits is harder than it seems. A professor in the United States conducted an experiment with students. He divided college students into three groups, and two groups...

They invited one group into a room, and it seems that they invited another group into a different room. Then, they told one group of students to actually eat chocolate cookies, while the other group was given something to drink instead of cookies—specifically, a beverage typically consumed with chicken. They were only allowed to smell the cookies but not eat them. As a result, when they conducted a problem-solving task after creating this sense of deprivation, the students who drank the beverage while suppressing their desire for cookies showed a significant decrease in their motivation to solve problems. They ended up giving up after just eight minutes, while the students who ate the cookies were quite successful. 

So, what insight does this experiment provide? From the perspective of the theory of willpower, it suggests that it is difficult to change bad habits solely through sheer willpower. In other words, restraining one's desires for something is not easy.

Energy is involved. This theory suggests that on days when energy is lacking, one may fail to exercise restraint. Willpower, like mental strength, is akin to muscles in that the ability to exert it is limited over time. So, what this article is discussing is that rather than overestimating one's willpower by saying, I am immune to temptation, it is essential to check the fundamental reasons behind these impulses. For instance, when I feel hungry and want to eat, what is the underlying psychological need I want to satisfy? Similarly, if I feel like smoking or drinking, it is crucial to identify what part of me feels deficient at that moment. Therefore, when signals arise, it is important to recognize them and not fall into repetitive behaviors.

This continues, and it seems to discuss the order of rewards. It is quite important to understand this reward and to be able to meet that reward in a different way. The idea is to change bad habits into good habits while maintaining the reward. For example, what is the reward obtained from looking at a smartphone just before sleeping? If the goal is simply to relax without thinking, I would like to replace that with constructive habits like meditation or reading. If I constantly want to snack, it is necessary to examine whether I want to wake myself up, take a break, or if I am truly hungry. Therefore, it is suggested to find alternative behaviors, such as drinking coffee or other activities. It may seem like a cliché, but in the bad habits we unconsciously engage in, there always seems to be a keyword of deficiency. So, understanding this deficiency and finding other...

I thought it would be good to consider whether we could provide this reward in a different way. So, we have looked over the content prepared for today, and we have completed the broadcast on Monday, October 28th. If you enjoyed the video, I kindly ask you to give it a like. I will conclude with a greeting. Hello to our friend Ho, nice to see you! Good morning, Doi! Thank you for doing well. Thank you, Magic Lamp Genie, for attending today as well. Thank you to everyone who joined us today. Lumi, have a great day! Shinpi said good morning. Nice to see you, Son of Wealth! Our department head Doyeon has also joined us. Good morning, Ji-young! Jenny Acho, let’s do our best this week! Thank you, Jeong-ah, for being with us again this week. Now, I will wrap up with greetings to everyone, including Heum Heum Heum. I will return next Monday at 8 AM with even better articles.

I would like to greet you, and thank you for being with us today. I hope you have a happy week.

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Price Competitiveness and Struggles in Retail

Gmarket is focusing on price competitiveness by selling products below the standard price and developing a price verification algorithm.

11st is preparing for its Grand 11th Sale and tightening its pricing strategy, with penalties for higher-than-average prices.

Starbucks is facing a management crisis and intense competition, leading to a change in its customer interaction approach, while the retail industry is struggling with declining luxury goods sales and shifting online, aiming for a strong year-end season.

Early Christmas Celebrations and Industry Shifts

The pop-up store's success has led to an early start for Christmas events at department stores, driven by a slight gap after Halloween and poor performance forecasts.

The economic downturn is pushing the department store industry to create a year-end atmosphere earlier than usual, while home shopping companies are struggling with declining TV viewership and are now focusing on expanding their private brand businesses.

The home appliance sector is also shifting from purchasing to subscription services, with LG Electronics reporting over ten million users, and AI is being actively utilized both online and offline, with examples like Lotte Mart's fruit sweetness measurement system.

Kakao's AI Kana: A Dual Assistant Approach

Kana consists of two AI assistants, Nana and Kana, with Nana focusing on personalized experiences and Kana operating in group chats.

Nana remembers conversations and sends reminders, while Kana quizzes on study materials and suggests date schedules.

Kakao's Kana aims for hyper-personalization and emotional understanding, while also launching a map service this year.

The Impact of AI and the Struggle with Bad Habits

AI is being extensively used in retail and counseling, with a strong focus on ultra-personalized customer analysis.

The upcoming shopping festival in November, including Black Friday and China's Singles' Day, is driving fierce competition in online retail.

The struggle to eliminate bad habits, such as excessive smartphone use, is common, and finding alternative behaviors and understanding underlying deficiencies can help in transforming them into good habits.

Korea Yakult's New Direction and AI Evolution

Korea Yakult has launched a fresh food breakfast delivery service and acquired a comprehensive food company, while also expanding its delivery app, Knock.

The rapid push for new businesses in the food industry is driven by market saturation, leading to diversification of offerings.

The evolution of AI is being categorized into five stages, with conversational AI already achieved and human-level problem-solving capabilities on the horizon.

Trends in Home Shopping and AI Development

Home shopping is shifting to sell its own products in response to changes in the media environment.

is experiencing a trend called "map," which combines spicy and sweet flavors, with Korean gochujang as a key ingredient.

AI is currently in the third stage of its development, capable of making judgments and taking actions, and is being tested for practical applications in various fields.

The Trend of Spicy-Sweet Flavors and Market Shifts

Spicy-sweet dishes are now a significant trend in American restaurants, with 10% of menus featuring this flavor combination, driven by the popularity of Korean gochujang.

The low-cost coffee market is booming, causing a shift in consumer preferences and leading to layoffs and employment adjustments in the industry.

Additionally, food companies are diversifying their offerings by venturing into cosmetics and health supplements, while AI's rapid advancement is reshaping the market and creating pressure on sellers to act quickly.

Companies Preparing for Year-End Marketing

Many companies are shifting their marketing focus to November and December, aiming to start campaigns early for Black Friday and Singles' Day.

Dongwon Industries is using AI and drones to locate tuna schools, while Hyundai Department Store offers a personalized concierge service with AI technology.

Lotte is primarily importing and distributing overseas fashion brands, claiming exclusive distribution rights, and is also venturing into in-house health supplement manufacturing.