NEWS/INSIGHT: HYUNDAI DUTY FREE


Hyundai Duty Free to join Seoul downtown ranks in new order


Hyundai Department Store Duty Free will be the latest addition to the crowded DF&TR downtown market if its store opens as expected in November 2018, as David Hayes reports.


H


yundai Department Store Duty Free is part of the Hyundai Department


Store Retail Group that includes 15 department stores, 10 of which are located in major cities across South Korea. The Group also owns food and beverage companies and home shopping enterprises. Planning is now at an advanced


stage for a new 14,500 sq m duty free shop, which will be opened on the three upper floors of the department store group’s flagship Samsung outlet in the fast-growing and fashionable Gangnam area. “We will start construction in the


second half and open in November 2018,” confirms Yuk Woo Seok, Managing Director of Hyundai Department Store Duty Free in an exclusive interview with TRBusiness. “The floor levels are currently


operating as a department store. We have initiated the construction process to transform them into a duty free store.”


FITs target He continues: “Our target is mainly FITs [free independent travellers] as our value proposition is to become the ultimate luxury shopping destination, but also to balance this with group tour customers which are dominated by Chinese visitors. “We expect 75% of customers will


be Chinese and other foreigners, and 25% South Koreans.” The duty free store will occupy


floors eight and nine under current plans, with each spanning 6,000 sq m. Customers will be able to


enter the duty free shop using the department store’s internal escalators and elevators, with four exclusive external elevators set for


JUNE 2018


construction to transport customers from street level directly to floors eight, nine and 10. Floor eight will feature 30 to 35 luxury brand boutiques, ranging from 300 sq m to 600 sq m in size. “Floor eight will feature luxury


fashion, watches and jewellery,” says Yuk. “We are working to bring in the best of the best; it’s an ongoing process. We are working on our ‘wow factor’; we will have a ‘wow’ area on floor eight.” Meanwhile, floor nine will display


perfume & cosmetics and fashion and accessories. “Floor nine will be different in


design and concept, there will be a mixture of international and South Korean perfume & cosmetics brands; it will be a balanced mix,” he continues. “In our perfume and cosmetics


area we will make sure that South Korean and international brands are naturally balanced and separated.” Floor 10 will be reserved for


South Korean products and brands including red ginseng, confectionery and packaged food.


Luxury ambience Although the colour scheme is yet to be finalised, the downtown store will boast a modern and luxurious interior design with marble flooring throughout. “Our value proposition is to deliver


the most luxurious ambiance,” says Yuk. “Hyundai Department Store is known for its exquisite service and store interiors, so that’s our goal.” Hyundai Department Store Duty


Free also plans to launch an online shopping mall to coincide with the downtown store opening. “We will have over 500 brands, online apps, a website and all the


Left to right: Hyundai Department Store Duty Free’s Yuk Woo Seok, Managing Director; and Cho Jun Ki, Luxury Fashion Manager and Buyer.


tools,” states Yuk. “Almost all our duty free categories will be available online. Also, some items available online will not be displayed in our store. We are still contacting brands. We will know in the second half of this year which brands we will offer online.” The Group’s new duty free


operation will be looking to attract Hyundai Department Store loyalty card holders to its duty free store and online mall before they travel abroad in the future. The department store group and


its various affiliates jointly have about 10 million members including 26,000 VIP cardholders who each spend more than US$50,000 a year. South Korean customers make up


20% of the membership, the rest are foreign members. «


Planning is now at an advanced stage for a new 14,500 sq m duty free shop, which will be opened on the three upper floors of the department store group’s flagship Samsung outlet in the fast-growing and fashionable Gangnam area.


TRBusiness TRBUSINESS 29


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