The department store industry is busy formulating strategies to boost repeat visits and purchasing power among foreign customers as major department stores approach the era of 1 trillion won in foreign sales. While securing content to attract one-time tourists as repeat customers, they are also putting significant effort into managing high-spending foreign VIP clients.
According to the retail industry on the 15th, Lotte Department Store, Shinsegae Department Store, and Hyundai Department Store are expected to surpass 1 trillion won in foreign sales by at least the third quarter. Based on the first half of the year, Lotte Department Store recorded 640 billion won in foreign sales, while Shinsegae Department Store and Hyundai Department Store each recorded 580 billion won and 500 billion won, respectively. This represents 70% to 80% of last year's foreign sales for each company.
Strategies to achieve 1 trillion won in foreign sales within the department store industry are evolving beyond simple discounts or shopping convenience toward enhancing foreign customers' purchasing power and encouraging repeat visits. Lotte Department Store has established official accounts on Chinese social media platforms and apps, collaborating with UnionPay and others to improve shopping convenience for foreign customers. Shinsegae Department Store is expanding luxury brands and hosting the "Shinsegae Shopping Festa" for foreigners, offering various benefits. Hyundai Department Store is proceeding with new store openings at key locations such as The Hyundai Seoul Busan.
In particular, there is a strong focus on managing high-spending foreign VIP clients. Lotte Department Store has partnered with banks in the Chinese-speaking region to provide cashback benefits for VIP customers. Until December, it offers up to 13% cashback for Agricultural Bank of China customers and up to 12% for China CITIC Bank customers when paying via UnionPay at Lotte Department Store. Additionally, Lotte Department Store has expanded its foreigner-exclusive membership program, "Lotte Tourist Membership," from the main store to the Jamsil branch and Busan headquarters, while broadening usage benefits across all Lotte Group affiliates.
Shinsegae Department Store is selecting VIPs among foreign customers through its global membership program and operating a VIP club. Once selected as a VIP, members receive shopping vouchers, purchase discounts, free parking, valet services, and more. The store also operates foreigner personal shoppers to enhance shopping convenience for VIP clients. It is also gradually reviewing the establishment of in-store lounges specifically for foreign VIPs.
Hyundai Department Store plans to sign joint marketing agreements with major retail companies in Shanghai, China, and Paris, France, by the end of this year. When global VIPs visit Korea, they will be treated equally to domestic VIPs at Hyundai Department Store. Additionally, the store is implementing specialized "pinpoint care" for VIPs, including launching a "Medical VIP Shopping Concierge Service" targeting foreign medical tourists with high purchasing power.
An industry official stated, "It is becoming increasingly important to increase repeat visits and average transaction values among foreign tourists," adding, "Competition in the department store industry to secure foreign VIP customers will become even more intense."
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