Shopping at Lotte'sThe e-commerce arm of retail giant Lotte, launched its nft shop platform just over two years ago, in May 2022. The company announced on June 12 that it would cease nft shop services on July 2.
Customers accessed the trading platform through the Lotte Home Shopping mobile application. The platform was part of Lotte's strategy to build a metaverse platform for the future.
Use of fiat currency and corporate ties
Unlike typical nft trading platforms, nft shop facilitated transactions using fiat KRW, with the goal of making nfts accessible to non-crypto holders. Lotte Home Shopping also introduced its own nft line with the corporate character Bellygom to attract users.
Lotte Home Shopping collaborated with Daehong Communications, a crypto startup owned by Lotte Group, for its nft initiatives. nfts were launched in the Polygon (MATIC) blockchain network, and the partnership expanded over time.
Source: Daehongofficial
The retailer expanded its nft reach by integrating nfts with virtual influencer Lucy and the popular horror movie “The Witch: Part 2. The Other One.” Plans were afoot to allow secondary sales of nfts on Opensea, the world's largest nft trading platform.
Source:here.me.lucy/instagram
Focus on core business areas
Following the closure of the nft shop, Lotte Home Shopping will completely withdraw from the nft sector. The remaining nft business, including Bellygom nft, will move to Daehong Communications.
Department store Hyundai also recently exited the nft market after launching its nft (H.nft) wallet services in 2022, which offered discounts and freebies to customers. Similarly, Shinsegae has reduced its nft offering amid the nft market slowdown.
An anonymous industry expert commented: “Retailers initially rushed into the nft business, but with the market slowing down, they are now closing their platforms one after another. “They are reorienting their efforts to strengthen the competitiveness of their core business.”
In conclusion, the decisions by Lotte, Hyundai and Shinsegae reflect a strategic shift among South Korean retailers, moving away from nfts and strengthening their core business areas. These closures mark a notable pullback for the once-promising nft sector, underscoring the challenges it faces as market dynamics evolve.
