South Korean operator SK Telecom has announced plans to expand into the subscription market and unveiled its new brand ‘T Universe’. SK Telecom says its subscription brand name embodies the company’s vision of creating a "subscription Platform for All", created in collaboration with partners ranging from SMEs and startups to global companies.
The launch coincides with the introduction of Amazon's Global Store in Korea, which will be a key partner for the platform, along with other retailers. SK Telecom aims to reach 36 million T Universe subscribers and KRW 8 trillion of annual gross merchandise value by 2025.
SK Telecom will launch various subscription products created with diverse partners on 31 August. The operator reports it is already working with partners from various areas and industries, including online/offline shopping (Amazon, 11st, Emart), food & beverage (Starbucks, Paris Baguette, Baedal Minjok), digital service (Google One, Wavve, Flo, V Coloring, Xbox Game Pass, Spoon Radio), mobility service (T Map, Modoo Shuttle), cosmetics (Toun 28), flower subscription (Kukka), pet products (About Pet), insurance (AIA Insurance), nutritional supplements (Biopublic) and education (DoBrain). SK Telecom is currently in talks with around 100 other companies to further expand its subscription service offerings.
Universe Pass - All
Subscription packages ('Universe Pass') will group together various subscription products centered around Amazon Global Store on 11st. For a monthly fee of KRW 9,900, the ‘Universe Pass - All’ offering will provide coupons worth KRW 10,000 and free international delivery with no minimum spend for Amazon Global Store products on 11st. It will also provide KRW 3,000 worth of 11st points, Google One Membership with 100GB of cloud storage, and one additional subscription product worth from KRW 8,000 to KRW 10,000.
Google One Membership with 100GB of cloud storage will be given to customers who subscribe to Universe Pass this year. The one additional subscription product can be changed every month. Customers can choose one product from brands such as Baedal Minjok, Paris Baguette, Emart, Starbucks and Kukka, and many more subscription products will be added to the list going forward.
Baedal Minjok coupons are worth KRW 8,000, while Paris Baguette offers up to 30 percent discount benefits, and Emart offers four KRW 3,000 coupons. Starbucks will provide Americano 4+1 coupons, twice per month, and Kukka will offer a KRW 9,000 coupon.
Universe Pass - Mini
For KRW 4,900 per month, the ‘Universe Pass - Mini’ pack will provide coupons worth KRW 10,000 and free international delivery with no minimum spend for Amazon Global Store products on 11st. Subscribers will also get KRW 3,000 worth of 11st points and will be able to choose between Wavve Lite service or Google One Membership with 100GB of cloud storage. Through launch promotions, customers will be able to get one month of Universe Pass-Mini for KRW 100 and Universe Pass-All for KRW 1,000, regardless of their mobile operator.
Amazon Global Store on 11st to open on 31 August
Scheduled to open on 31 August, Amazon Global Store will enable customers in South Korea to shop Amazon US products on 11st. Amazon Global Store will also offer four to six days delivery for over 160,000 products that are most frequently purchased by customers in South Korea. Other products on Amazon Global Store will be delivered within an average of six to ten business days.
All deals on Amazon in the US will be applied to Amazon Global Store for the same products and customers will be able to enjoy exclusive deals on Amazon Global Store. Customers can search and view product information in Korean, and pay in Korean won using 11st payment methods. 11st will operate a customer service center dedicated to purchases on Amazon Global Store to enhance customer experience.
SK Telecom expects that Universe Pass will allow customers to feel as if they are shopping domestically through free international shipping benefits with no minimum spend. Minimum spend for free delivery for non-subscribers is set at KRW 28,000.
Distribution channels to suggest customized products
SK Telecom will operate around 1,000 specialized subscription stores by installing smart tables and subscription service experience zones at its offline retail stores throughout the county. The operator also plans to train 1,000 consultants to provide specialized care and assistance for subscription customers. SK Telecom’s customer care center currently handles over 100 million customer calls per year. Customers will also be able to sign up for the subscription products via online channels of SK Telecom (T World) and its subsidiaries (11st) that boast a combined total of 50 million monthly active users.
Leveraging these offline and online channels, SK Telecom also has in place an artificial intelligence (AI) and digital transformation (DT) system through which it can offer subscription products tailored to each individual’s tastes and preferences based on their data. This is expected to enable customers to find subscription products that fit their needs via both online and offline channels, seek consulting for their subscription needs, and take up the benefits the products offer.
SK Telecom to develop online-offline subscription commerce platform
Going forward, SK Telecom plans to create an advanced online-offline subscription commerce platform based on AI and DT. By analyzing massive data from a wide variety of subscription products, coupled with its existing data generated from telecommunications and other ICT businesses, SK Telecom plans to connect customers to ideal subscription services based on an in-depth understanding of contextual customer data such as preferred contents and personal interests.
