Korea Lotte is one of the five largest companies in South Korea. It has entered the Chinese market since the end of the last century. Korea Lotte Group 's reason for entering the Chinese market is the rapid development of China's economy and the rapid expansion of the market, so it has laid out its own business empire in China early.
After more than 20 years of development, South Korea's Lotte Group has a large number of physical stores in China. These physical stores had extremely high popularity and revenue growth three years ago. At that time, the Chinese market became one of the important sources of revenue and profit for South Korea's Lotte Group.
: In terms of Lotte's market share in China at that time, the future market and revenue of Lotte in China will be very optimistic in the future, but Lotte Group made a fatal mistake
On September 30, 2016, the South Korean government announced that it would use Lotte Group's Xingzhou Golf Course as the deployment location of the THAAD system. After receiving the information from the South Korean government, Lotte Group finally decided to make land for the deployment of the THAAD system after several months of research. On February 27, 2017, the Lotte board of directors announced that it would agree to supply land for THAAD. This news directly aroused the extreme disgust of Chinese people towards Lotte. As a result, a large number of people went to the local Lotte supermarket to spend. Many people said that they would refund the card after using up the balance in the Lotte membership card and would never buy things from Lotte again. The boycott of the Chinese people soon caused Lotte Mart and Lotte Department Store in China to fall into business difficulties. Due to the indignation of the people, Lotte Group had to close most of the Lotte Mart and Lotte Department Store in China.
In 2016, before South Korea deployed the THAAD system, Rakuten still ranked 414 among the Fortune 500 companies, but in 2017, Rakuten's ranking dropped to 431. In the following two years, Rakuten was directly squeezed out of the Fortune 500 list.
Lotte has very few assets in my country
Overall, Lotte's assets in China are mainly processed in two ways, one is to sell (acquisition), and the other is to continue to operate (staying alive, it is said that only a few days of business are open in a month). The former Lotte Mart and Lotte Department Store no longer exist. They have long been acquired by Liqun Group and their names have also become "Kangfeng Co., Ltd." and "Fengjie Co., Ltd.".
As of March this year, two stores in Tianjin were finally withdrawn. Currently, Lotte only has businesses such as the Lotte Real Estate Complex Project in Shenyang, Chengdu and Weihai in China. After all, real estate is a business with a long cycle, so it is naturally slower to recover funds. Moreover, there are many Koreans in the above-mentioned areas. Lotte has a certain market foundation, but overall it is basically in a loss-making state.
It can only be said that Lotte Group, as an important economic pillar of South Korea, paid a huge price because of its short-sighted vision and the South Korean government. The " THAAD " missile system deployed now cannot even protect the South Korean capital, but it still has to make the United States quarrel. Trump asked for US$5 billion in the US military to share the costs of South Korea, which also made the government miserable. As a slave to the United States, South Korea is doomed to the tragedy of fate. Lotte is just a microcosm of South Korea's future. South Korea, which cannot be independent and independent, is destined to be overwhelmed by historical trends.
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