choice determines destiny, not only for individuals, but also for a company.
In recent years, with the recovery and prosperity of my country's economy, countless foreign companies have targeted China's huge market and are trying to get a share.
But trying to do is different from doing it. Too many companies came in a hurry and later left in a dim way. South Korea's Lotte is one of them.
However, it is different from Amazon 's reason for withdrawing from China. Amazon decided to withdraw because it was always at a disadvantage in the fierce competition with major domestic e-commerce companies, while Lotte's withdrawal stems from the simplest patriotism of the Chinese people.
In 2017, due to the THAAD incident, the two countries' relations fell to freezing point , the board of directors of Lotte Group made what they believed to be the right choice to provide a venue for the deployment of THAAD .
This decision triggered countless chain reactions. The strong resistance of the Chinese people caused Lotte to suffer losses one after another. He had no choice but to give up China, the largest overseas market, in 2018.
cut off his arm, but this is not the end, but the beginning of their downhill journey. So what has the Lotte Group, which has been at its peak in the past four years?
withdrew from the Chinese market due to the THAAD incident
In 2016, the United States and South Korea hit it off and decided to deploy the so-called THAAD anti-missile system in South Korea. This move aroused strong opposition from the international community, especially China, and the United States and South Korea ignored this.
Of course, their decision is for their own benefit.
The continuous nuclear tests of North Korea, which are adjacent to South Korea, have caused South Korea to have a strong sense of crisis, and its attitude towards deploying the THAAD system, has also changed from ambiguity to resolute.
Once the THAAD system is successfully deployed, it will be like a fishbone stuck in the throat. Advanced radar technology has given the United States the ability to peek at other countries.
Their arguments to the foreign " protecting South Korea's security " are just an excuse and fig leaf.
On September 30 of the same year, Xingzhou Golf Course was established as the official deployment location, and the owner of this course was Lotte Group.
Then Lotte Group held a special meeting on on on February 27, 2017, expressing its attitude and position, that is, it is willing and proactively providing deployment sites.
It will be different if I am not a person of my family. Even if I make a lot of money in China, Lotte Group is always a Korean company.
Their decision completely ignited the anger of the Chinese people who were already dissatisfied with it, and people began to boycott Lotte.
Whether on the Internet or in reality, hundreds of millions of people have a common view, that is, Lotte wants to get out of China.
Then Xinhua News Agency , People's Daily and other media published articles, saying that the patriotic enthusiasm of the Chinese people was high, and under the fermentation of public opinion, the boycott of Lotte Group became stronger, until it withdrew from the Chinese market one by one in 2018.
Lotte Group managers who once said that Chinese people would soon forget were also slapped in the face.
In this year, the monthly losses of hundreds of millions and the plummeting turnover and profit margins caused Lotte Group to close hundreds of stores and its products were removed from the shelves.
entered the Chinese market in 1994. Lotte Group's sales, tourism, finance, etc. have been thriving. More than 20 years of hard work have been completely wasted because of a decision.
In March 2022, Lotte Group returned to the attention of the Chinese people, but its headquarters in Shanghai is about to be closed.
lost nearly 10 billion yuan. As the top 500 in the world, its ranking has also dropped from more than 100 to three or four hundred. After all, they are still suffering.
Development history of Lotte Group
As one of the five major chaebols in South Korea, its soul figure Singhho was not born in a wealthy family, his parents were both ordinary people.
In that war-torn era, Singhhao and his wife came to Japan to study and make a living. He graduated from Waseda University and has never been willing to be ordinary.
In 1944, with the support of others, Singhho founded his first company to produce cutting oil . Unfortunately, the factory was soon lost to the war, and he was burdened with debts before he could make great progress.
But he did not give up. In 1948, Japanese fruit making was officially established. , as the first company of Lotte Group, is mainly used to produce chewing gum.
But gradually Singerhao discovered that money is important, but if you want to further develop, what is needed is a strong background.
When he dozed off, he came to the pillow. The acquaintance with Chongkumi's niece Chongkumiko gave Singh a chance.
He resolutely abandoned his wife and married into the Chongguang family. In order to express his determination, he even changed his name to Chongguang Takeo.
As Japan-South Korea relations eased, Singhho keenly noticed business opportunities and seized them. In 1967, Lotte Fruit was established in South Korea, and Singhho began to build his own business empire.
Then Lotte Hotel, Lotte Shopping, Lotte Li , Lotte Construction, Lotte Jigong and other companies were established one after another.
Lotte Group has a wide range of coverage, including tourism, retail, chemical industry, finance, food, and entertainment, and has become the leader of the Korean tourism industry.
South Korea's chaebols are always closely connected with the government. With the government giving the green light, Lotte's development has also made rapid progress.
Entering the 1990s, under the influence of the economic crisis, Lotte Group also began to expand its global market, among which China is indispensable.
Lotte has set up 112 stores in 24 provinces in my country. However, with the rise of local enterprises in my country, Lotte Group has turned its attention to the still weak industry of entertainment in my country. 2014 Shenyang Lotte World started construction.
But it’s a pity that Lotte Group’s dream of winning the Chinese market finally became the bubble , and today’s Lotte World can only be described as dismal. After the THAAD incident, Lotte Group was in a situation of being attacked from both sides.
Outside, there was resistance from the Chinese people. Including, Singhhao and his son were sentenced one after another due to bribery and illegal business.
And his contempt for the law in court has increased the disgust of South Korean people towards him.
losses are rising steadily, and Lotte Group has also increased its investment in hopes of rescuing the Chinese market, but in the end it is useless.
In order to be able to stop loss in time, they began to sell assets in China.
In 2019, Japan and South Korea fell into a trade war, which aroused a wave of boycotting Japanese goods by the South Korean people. Lotte, a group closely linked to Japan, became one of the boycott targets. The negative growth of
has caused Lotte Group to target the Southeast Asian market and further increase its investment in 2022. Unfortunately, most of these companies are in a loss-making state.
summary
Lotte is inevitable. People have to bear the corresponding consequences if they do something wrong. The same is true for a company. For Lotte Group, it can only be said that they are bound by themselves and suffer the consequences. They pay the due price for their arrogance.
Lotte Group's helmsman was replaced with Xin Dongbin , and his Chinese are all corrupt remarks have become jokes because of the unity between the upper and lower levels.
Only by making the right choice can you have a bright future.
Patriotism can be said to be something engraved in every Chinese gene. The continuous inheritance has given us unprecedented cohesion. The interests of the country are our bottom line and cannot be trampled on by anyone at will.
In 1944, with the support of others, Singhho founded his first company to produce cutting oil . Unfortunately, the factory was soon lost to the war, and he was burdened with debts before he could make great progress.
But he did not give up. In 1948, Japanese fruit making was officially established. , as the first company of Lotte Group, is mainly used to produce chewing gum.
But gradually Singerhao discovered that money is important, but if you want to further develop, what is needed is a strong background.
When he dozed off, he came to the pillow. The acquaintance with Chongkumi's niece Chongkumiko gave Singh a chance.
He resolutely abandoned his wife and married into the Chongguang family. In order to express his determination, he even changed his name to Chongguang Takeo.
As Japan-South Korea relations eased, Singhho keenly noticed business opportunities and seized them. In 1967, Lotte Fruit was established in South Korea, and Singhho began to build his own business empire.
Then Lotte Hotel, Lotte Shopping, Lotte Li , Lotte Construction, Lotte Jigong and other companies were established one after another.
Lotte Group has a wide range of coverage, including tourism, retail, chemical industry, finance, food, and entertainment, and has become the leader of the Korean tourism industry.
South Korea's chaebols are always closely connected with the government. With the government giving the green light, Lotte's development has also made rapid progress.
Entering the 1990s, under the influence of the economic crisis, Lotte Group also began to expand its global market, among which China is indispensable.
Lotte has set up 112 stores in 24 provinces in my country. However, with the rise of local enterprises in my country, Lotte Group has turned its attention to the still weak industry of entertainment in my country. 2014 Shenyang Lotte World started construction.
But it’s a pity that Lotte Group’s dream of winning the Chinese market finally became the bubble , and today’s Lotte World can only be described as dismal. After the THAAD incident, Lotte Group was in a situation of being attacked from both sides.
Outside, there was resistance from the Chinese people. Including, Singhhao and his son were sentenced one after another due to bribery and illegal business.
And his contempt for the law in court has increased the disgust of South Korean people towards him.
losses are rising steadily, and Lotte Group has also increased its investment in hopes of rescuing the Chinese market, but in the end it is useless.
In order to be able to stop loss in time, they began to sell assets in China.
In 2019, Japan and South Korea fell into a trade war, which aroused a wave of boycotting Japanese goods by the South Korean people. Lotte, a group closely linked to Japan, became one of the boycott targets. The negative growth of
has caused Lotte Group to target the Southeast Asian market and further increase its investment in 2022. Unfortunately, most of these companies are in a loss-making state.
summary
Lotte is inevitable. People have to bear the corresponding consequences if they do something wrong. The same is true for a company. For Lotte Group, it can only be said that they are bound by themselves and suffer the consequences. They pay the due price for their arrogance.
Lotte Group's helmsman was replaced with Xin Dongbin , and his Chinese are all corrupt remarks have become jokes because of the unity between the upper and lower levels.
Only by making the right choice can you have a bright future.
Patriotism can be said to be something engraved in every Chinese gene. The continuous inheritance has given us unprecedented cohesion. The interests of the country are our bottom line and cannot be trampled on by anyone at will.
