SOUTH KOREA REPORT: HANWHA GALLERIA DF


Hanwha diversifies P&C strategy to mitigate THAAD uncertainty


Hanwha Group’s Galleria Duty Free is planning a reorganisation of perfume & cosmetics space at its Seoul downtown store, as it targets plus-30% revenue growth in 2018. As David Hayes reports, the objective is to build on a sales haul of $293m recorded last year.


H


anwha Galleria Duty Free has launched a major reorganisation of the


perfume and cosmetics floor layout at its Seoul downtown duty free shop in a new initiative to raise revenue from the store’s biggest- selling category. Demand means more South


Korean cosmetics brands are to be added to the store’s skincare and colour make-up collection, while additional retail space will be devoted to top-selling cosmetics as part of efforts to boost total shop revenue by more than 30% this year. “We will change our perfume and


cosmetics layout,” Yang Sang Mo, Branch Manager at Galleria Duty Free 63 confirms in an exclusive interview with TRBusiness. “On the right hand side of our


store’s main entrance there is extra retail space under construction. We will relocate top brands to this new brands zone and add more South Korean brands to our cosmetics collection. “About three or four brands will


move to this hot-selling cosmetics zone. Around these brands’ old locations, some remaining will


MAY 2018


expand while others will move. We will have about five to seven new brands. We will complete this project soon.” Perfume and cosmetics accounted


for over 60% of Galleria Duty Free’s total sales in 2017, according to Yang.


Imported cosmetics rise South Korean cosmetics brands represented about 60% of total cosmetics sales, while imported brands were 40% of perfume and cosmetics revenue. “Imported perfume and cosmetics


grew faster than South Korean products in 2017 as the recent trend is that customers look for colour make- up products such as Tom Ford, MAC and YSL,” says Yang. “Because Chinese consumers


look for colour make-up, this affects our South Korean duty free market as well.” The growing popularity of colour


make-up among women in China has added new products to Chinese customers’ shopping lists rather than replacing their previous purchase preferences with new products. “The cosmetics market has shown a quantum leap with make-up


products while the skincare market has been flourishing as Asian women always place importance on clean and radiant looks,” notes Yang. “The skincare market is still


big, but colour make-up sales are growing faster and this is driving imported cosmetics’ brand growth. “Nowadays the make-up market is


taking the lead as women can show their character by using make-up items like lipstick and eyeliners.” Asked about fragrance sales


trends, Yang says that recent demand has moved away from designer perfumes to more exclusive scents. “Niche perfumes tend to be


expensive as they are made in small quantities with fine ingredients,” Yang observes. “Brands including Byredo and Creed are highly sought as they are high in scarcity and very


Galleria Duty Free has launched a major reorganisation of the perfume and cosmetics floor layout at its Seoul downtown shop in a new initiative to raise revenue from the store’s biggest-selling category.


TRBusiness TRBUSINESS 115


Above: Hanwha Galleria’s flagship Seoul downtown store.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148  |  Page 149  |  Page 150  |  Page 151  |  Page 152  |  Page 153  |  Page 154  |  Page 155  |  Page 156  |  Page 157  |  Page 158  |  Page 159  |  Page 160  |  Page 161  |  Page 162  |  Page 163  |  Page 164