SK Telecom (NYSE: SKM) today announced the launch of a pilot test for Smart Cart in Korea with E-Mart, the nation’s largest retail chain. The test, conducted to make the service stronger by identifying areas of further improvement, takes place at the E-Mart store located in Seongsu-dong, Seoul.

Smart Cart is an innovative service that uses a smartphone and a smart shopping cart equipped with tablet PC to offer diverse shopping-related information based on accurate indoor positioning technology. After downloading the Smart Cart application to their smartphones, customers can search for shopping/discount information, store coupons and draw up a shopping list. Then at supermarkets or retail stores, the customer’s smartphone is synchronized with a tablet PC installed to a smart shopping cart through user authentication. Within the stores, depending on their location, customers can get useful information – e.g. catalogue, product information, discount information, etc. – and receive coupons using augmented reality technology. At the checkout counter, the tablet screen shows the list of purchased items, membership points and available coupons.

Indoor positioning technology uses both UWB and Zigbee to offer location information within error range of one meter and diverse real-time information updates appear on screen of tablet PCs attached to shopping carts via Wi-Fi networks.

Smart Cart is expected to realize a truly personalized, smart shopping service once integrated with the customer relations management (CRM)-related information including the E-mart customers’ purchase history and usage patterns. Customers will enjoy greater convenience through location-based information of products they wish to purchase, improved access to all available discounts, and a more personalized experience through product recommendations given upon their shopping history. Also, both retailers and their suppliers can execute targeted in-store marketing plans and effectively advertise their products at the point of purchase through various promotions. Data can be utilized for measuring results and devising new marketing plans. Moreover, retailers and brands can secure a new communication channel with customers and provide more satisfying shopping experiences and solidify customer retention and loyalty.

J.H. Park, Executive Vice President and Chief Strategy Officer at E-Mart said, "Smart Cart will provide an opportunity for both E-Mart and SK Telecom to make a leap forward as it is expected to deliver new value to customers by offering new products and services that integrate E-Mart’s distribution channel and SK Telecom’s telecommunication services. E-Mart, together with SK Telecom, will make efforts to play the leading role in this new upcoming market."

Bae Joon-Dong, President of Network Operations Business at SK Telecom said, "Smart Cart will provide customers with a whole new shopping experience. Based on strong cooperative relationship with E-Mart, SK Telecom will shape Smart Cart into an innovative service that offers greater convenience and benefits to all stakeholders including shoppers, retailers and their suppliers, thereby building a new valuable ecosystem."

In July 2011, SK Telecom conducted the first pilot test for Smart Cart at the Shanghai store of Shanghai Lotus Supermarket Chain Store Co., Ltd. According to the results of the pilot test, 76.2 percent of respondents who used Smart Cart said that they were satisfied with the useful information and convenient shopping service offered by Smart Cart. Moreover, Smart Cart users showed 14 percent higher brand interest and 15.3 percent greater purchase intention compared to regular shopping cart users.

Looking forward, SK Telecom will work closely with Korean retailers to develop Smart Cart business models, while devising additional measures to strengthen its marketability.