SOUTH KOREA REPORT: HANWHA GALLERIA DF unique,” says Yang.
South Korean wave South Korean skincare brands are also expected to post strong demand this year, prompting Galleria to renovate several leading displays. “We are in the process of an
ambitious in-store renovation of South Korean cosmetics brands such as Sulwhasoo, Laneige and Dr. Jart with completely new interior design types in the first half of 2018, inspired by the continuously growing cosmetics market,” continues Yang. “Beauty devices also have a
skincare function. Beauty device products have become a recent megatrend as people find it difficult to go to skin clinics or professional beauty salons because of their busy lives. “The beauty device market shows
about 20% sales growth each year. Our main brands are ReFa, Carat and Foreo.” Galleria Duty Free 63’s downtown
duty free store is located on the lower floor levels of the iconic Daehan 63 skyscraper on Yeouido island, where South Korea’s National Assembly building and the capital’s financial district are located. Galleria Duty Free is the
trading name of Hanwha Galleria Timeworld, an associate of Hanwha Galleria, which is a retailing member of the diversified Hanwha Group of companies that owns the Daehan 63 Building. Hanwha Galleria operates seven
luxury department stores in cities across South Korea, including its flagship Apgujeong department store in Seoul’s affluent Gangnam district. Assisted by the parent company’s expertise in luxury retailing, Galleria Duty Free has created an upscale, luxurious shopping environment at the base of the Daehan 63 skyscraper. Galleria’s four-floor store is the
first downtown duty free outlet to trade in Seoul’s western district. Opened in late 2015 and covering 10,072 sq m, the shop is still the closest downtown duty free shop to Incheon International Airport and Seoul Gimpo International Airport. As part of its strategy to increase
customer footfall, Galleria is marketing its shop location as a
MAY 2018 A Bobbi Brown cosmetics fixture at Hanwha Galleria’s Seoul downtown store. TRBUSINESS 117
complete visitor destination for foreign tourists that also offers easy access to local customers living in the fashionable nearby Gangnam area. In addition to Galleria Duty
Free, the Daehan 63 Building’s other attractions include high-rise panoramic view restaurants, an art gallery at the top of the skyscraper and Hanwha Aqua Planet aquarium in the basement.
Sales $293m in 2017 Galleria Duty Free achieved sales of $293m in its Seoul downtown shop in 2017 – a 50% increase in revenue compared with 2016, which was the store’s first full year in operation. “Our original target was high last
year, then the THAAD crisis occurred in March 2017 and we changed our target,” states Yang. “Our original target for 2017 was $350 million. “For 2018 our target is a plus-30%
increase or over $400 million [in] sales. However, actual sales will be decided by the Chinese visitor issue.” Although the Galleria Duty Free
management team is optimistic the THAAD missile system crisis will be resolved soon and that Chinese visitor numbers will start growing again, 2018 has started slowly. “At the beginning of 2018 there was
a little increase in sales compared to last year, but we expect the THAAD missile crisis will be solved soon,” predicts Yang. “Chinese New Near 2018 wasn’t
good as the PyeongChang Winter Olympics coincided with it and
Colour make-up is a growing category among Chinese women.
Galleria Duty Free achieved sales of $293m in its Seoul downtown shop in 2017.
TRBusiness
foreign visitors wanted to go to the Olympics. “Also, airline flight costs were
higher then, so it was difficult to visit South Korea.” Sales started to pick up early in
March, raising hopes for a stronger performance overall in 2018. “March was a different story as we
are growing now,” observes Yang. “Also, cherry blossom is famous
on Yeouido and lasts a few weeks in April. It’s popular with foreign visitors.
More brands to come Now, Galleria Duty Free is planning to introduce more brands to its store to attract a wider range of foreign and South Korean customers. “We are opening more shops and diversifying our customers,” says
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