– Innovation in offline data blind spots
– Transforming spaces into 'retail channels' with 'flagshops'
– Zero Commerce Vision: Implementing a Zero Commerce Vision, Reducing the Distance Between Consumption and Space
"For over 15 years, we've been confronting the limitations of offline distribution. The constant problem has been the lack of channels through which manufacturers can directly understand and connect with consumers," said Kim Chung-hee, CEO of Workers High, in a calm tone.
“ Every space where people stay will soon become retail.”
Kim Chung-hee, CEO of Workers High, who has extensive experience in sales, marketing, and e-commerce at Lotte Chilsung Beverage, recognized the growing online presence of direct-to-consumer (D2C) sales, while a "consumer data gap" persisted offline. While products were sold offline, consumer information remained trapped within the distribution network. He believed that if the "space" where consumption occurred could be digitized, the retail paradigm would shift.
After much deliberation, in 2021, CEO Kim was selected as the third in-house venture at Lotte Chilsung Beverage and subsequently spun off as an independent corporation, founding Workers High Co., Ltd. Workers High began with the philosophy of "making work enjoyable and relaxing for everyone."
It started out as a 'snack minibar', but has now grown into a curated retail platform called 'FLAGSHOP' targeting residential spaces such as offices, hotels, and accommodation facilities.
Workers High achieved 500 million won in sales in its first year and is projecting 13 billion won this year. It focuses on creating a "structure where consumption naturally occurs within the space."
CEO Kim emphasized the need for market change, saying, “Existing vending machines have had various problems, such as difficulty in inventory management and inefficiency in product curation.” He also emphasized, “We want to build a smart distribution system that accurately identifies ‘who, when, where, what, and why’ by incorporating AI and data analysis into this.”
' FLAGSHOP' is not just an unmanned store, but a 'spatial retail platform'.
A "flagship shop" isn't simply a space displaying products like a vending machine. At the heart of Workers High is an AI-powered smart vending machine. Beyond simply displaying and selling products, this vending machine learns specific data about the office space in which it's installed.
CEO Kim emphasized the differentiation, saying, "For example, offices prioritize repetitive consumption, while hotels prioritize immediate consumption. Flagship stores learn these spatial consumption rhythms and design differentiated product mixes, payment methods, and inventory rotation. We don't simply 'sell' products; we make spaces the final medium connecting brands and consumers."
Indeed, flagship stores utilize AI data-driven curation to closely analyze the characteristics of each space, offering an optimal lineup of convenience foods and snacks. This approach has not only significantly increased inventory turnover and customer satisfaction, but is also setting a new standard for effective welfare solutions and "spatial retail" in various corporate welfare spaces and hotel lobbies.
" Rewriting the Rules of the Vending Machine Market"… Building a Value Chain Linking Technology, Logistics, and Operations
The process of innovation is never smooth. The same holds true for transforming the stale vending machine market.
CEO Kim lamented the difficulties of the initial innovation process, saying, "Because the vending machine market is a long-standing industry, there was significant internal resistance when introducing new technologies. In particular, existing vending machines were structured in a way that made data collection impossible, making them 'retail that couldn't understand consumers.'"
To overcome these limitations, Workers High redesigned its devices, software, and logistics systems. CEO Kim explained, "No matter how good the technology is, it won't work in the field if hardware, operations, and data are disconnected. Ultimately, we decided to create a value chain that connects all processes. Focusing solely on 'convenience' isn't sustainable. We need to understand consumption patterns across spaces through data and connect that to a retail strategy."
As a result, Workers High has demonstrated clear results, including a product composition accuracy rate of over 80%, improved welfare operation efficiency, and enhanced consumer satisfaction.
" We will showcase the 'evolution of unmanned retail' in Japan."
We asked which countries Workers High plans to target for its future global expansion. CEO Kim chose Japan as the platform for Workers High's global expansion.
He expressed his ambition, saying, "Japan has a massive market, boasting over 20 times the number of vending machines compared to Korea. While Japan is the world leader in the vending machine market, its operations are still largely analog. We aim to showcase an 'evolved form of unmanned retail' in that market."
Workers High is currently working to establish infrastructure, including a local network of channels, for its third year of expansion into the Japanese market, starting in 2023. Next year, it plans to open its first "FLAGSHOP" in Japan in a major Tokyo hotel and commercial space. Initially, it plans to accumulate consumer data to enhance the precision of curation in each space.
Workers High aims to achieve "Zero Commerce" in the long term. A world where customers can have their desired products ready in their own space, without even having to order them. This is the future of retail envisioned by Workers High.
" Zero Distance Between Consumption and Space: A New Daily Life Created by Workers High"
Workers High is positioning itself as a company that innovates the "last meter of consumption" with the vision of becoming an indoor-based retail platform that brings people first access to the products they need wherever they are.
Concluding the interview, CEO Kim added this:
"The essence of what we do is to change the 'moment of consumption.' And that moment will now be created within the very space where we inhabit," he said, presenting Workers High's vision.
Workers High aims to transform the indoor retail landscape by leveraging "spatial data" as a core driving force in distribution, establishing itself as a "Total Retail Solution Provider" that delivers optimized consumer experiences across all physical spaces. It's time to pay attention to the blueprint Workers High will draw for the future retail market in Japan and other global markets.
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