SOUTH KOREA: SHILLA I’PARK DUTY FREE
popular online and internet shopping assortment. Shilla I’Park also plans to upgrade
other areas of the store by adding top-line brands to its luxury fashion collection, while introducing new South Korean fashion names that are popular with Chinese customers. Shilla I’Park achieved total sales
of $740m in 2017, more than double its revenue haul of almost $350m in 2016 [the company’s first full year of operation-Ed]. “Our sales doubled in 2017 but
perfume and cosmetics did not increase as much because there was a shortage of products for some imported brands such as lipsticks,” explains the spokesperson. “Because of product shortages our
perfume and cosmetics sales did not reach their maximum potential, but they still increased by 35% in 2017 compared to 2016. “Top South Korean cosmetics
brands also had a shortage problem; it affected all downtown duty free shops in Seoul.” Perfume and cosmetics account
for about 80% of Shilla I’Park’s total sales, TRBusiness learns. Imported beauty products represent about 55% of overall fragrance and cosmetics revenue, while South Korean brands occupy the remaining 45% share. Shilla I’Park’s top imported
perfume and cosmetics brands are Lancôme, Estée Lauder and Dior. Best-selling South Korean brands include The History of Whoo, Sulwhasoo and Laneige. Luxury fashion is Shilla I’Park’s
second largest-selling category, representing about 10% of sales, confirms the spokesperson. Top- selling brands include Bottega Veneta, Burberry and Gucci, with Celine, Fendi, Golden Goose, Ebisu and South Korean brand Boy London also performing well last year. “We are still waiting for Louis
Vuitton and Dior,” notes the spokesperson. “We are talking about timings to open their boutiques. “Since Chinese FITs (free
independent travellers) have not been coming to South Korea; the brands are waiting for them to come back.” The firm’s watches corner situated
on the entry floor level opposite the main entrance is also doing
MAY 2018 Fashion is getting an upgrade at Shilla I’Park Duty Free. TRBUSINESS 103
strong business, with TAGHeuer popular among South Korean and Chinese customers. “Our watches zone increased [by]
more than double in 2017 compared to 2016,” reveals the spokesperson.
SK purchases +45% Meanwhile, online sales are growing quickly and are expected to make an important contribution to overall growth as Shilla I’Park targets a +27% increase in revenue this year. Chinese customers account for the
largest share of Shilla I’Park’s sales and are expected to be the catalyst behind the renewed sales target this year. Last year marked the first full year
of digital sales after Shilla I’Park opened its online shop in May 2016. “Our online sales were about $250
million, one third of our total sales in 2017,” explains the spokesperson. “We have set a target for 2018 of
$350 million for online shopping. Our total sales target this year is $950 million, a +27% increase. We expect 80% of our sales will be perfume and cosmetics.” While South Korean purchases are
growing, it remains a small portion of total sales. “South Korean purchases
were up 45% last year,” says the spokesperson. “South Korean customers like luxury fashion brands; it’s different to Chinese customers who focus on South Korean perfume and cosmetics products. “About 90% of South Korean customers buy online,” the
Shilla I’Park Duty Free achieved total sales of $740m in 2017, more than double its revenue haul of almost $350m in 2016.
TRBusiness
A Kakao Friends display.
spokesperson continues. “Their online purchases are bigger than in our store. South Korean online sales increased almost threefold in 2017. They buy mostly imported cosmetics.” Shilla I’Park’s online shop features
the aforementioned J-Zone for Japanese cosmetics; a Kids Zone for fashion, toys and cosmetics (mostly skincare products); a Man Zone featuring clothes, accessories and cosmetics; plus a Wedding Zone selling thank you gifts such as lipstick and lip balm.
Brands lend tips In addition to discount promotions of about 10% on selected brands and products, Shilla I’Park also presents a series of events that include beauty and fashion tips from invited brands. In-store promotions including pop-
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