SOUTH KOREA REPORT: HANWHA GALLERIA DF
major share of Galleria Duty Free sales at present, with the share of Daigou (shuttle trader) purchases rising recently. “Chinese visitors account for
more than 90% of total customers,” explains Yang. “The remaining 10% consists
of South Korean, Japanese and other nationalities. South Korean customers show higher interest in foreign cosmetics brands. “Most Chinese prefer South Korean cosmetics
including
Sulwhasoo and Whoo, as well as various Korean goods. “In addition, Daigou traders
Left to right: Han Kyung Duk, Team Leader, Merchandising Team, Galleria Duty Free 63; and Yang Sang Mo, Branch Manager, Galleria Duty Free 63.
“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.”
Yang Sang Mo, Branch Manager, Galleria Duty Free 63
luxury watch boutique, which is the German brand’s only duty free outlet in South Korea. “IWC and Jaeger Le-Coultre have
been ranked as top among luxury watch brands in Galleria Duty Free,” comments Yang. “These are preferred by most
Yang. “We are talking to top-line luxury brands. We hope big brands will open boutiques in our store.” Galleria has opened a number of
new brand boutiques during the past nine months. The store’s Tod’s boutique opened in June last year, followed by an IWC and Jaeger Le- Coultre watch boutique in July. Another recent addition is the store’s new Nomos Glashütte
Chinese customers, especially as wedding gifts. The hit models of the brands tend to be out-of-stock as soon as they arrive at the store.” As such, these new watch brands
have had an immediate impact on Galleria’s watch sales. “After IWC and Jaeger Le-Coultre
launched their boutique our watch sales have grown dramatically,” confirms Yang. “Watches from $2,000 to $3,000
are the popular prices. Men’s watches are selling the most.” Another duty free exclusive
that Galleria offers customers is its Golden Goose Deluxe Brand sneakers boutique, which has opened its first duty free boutique in Galleria Duty Free.
Leathergoods on the rise Elsewhere, leather bags remain popular among Galleria customers looking for luxury goods purchases. “Last year was the year of Gucci.,”
Perfume and cosmetics accounted for 60% of Galleria Duty Free’s total sales in 2017.
118 TRBUSINESS
declares Yang. “The growth of Gucci in South Korea’s domestic fashion market was very high and it was the same in the South Korean duty free market.” Chinese visitors account for the
account for a high proportion of Chinese customers recently, so they tend to concentrate on preferred items in China.”
FIT focus Looking ahead, Yang points out that Galleria Duty Free 63 is looking to attract other nationalities to its store. “What is important is how we
advertise to let people know what we have here and nearby – our shop, the Hanwha Aqua Planet aquarium, Han Riverside Park, seasonal events like cherry blossom and autumn fireworks,” says Yang. “These are important attractions
to bring customers here. We are using online advertising and we have an online store. We advertise through our parent company and social media networks for more FIT [free independent traveller] customers.” Meanwhile, online and internet
shopping has become an important and growing source of revenue for Galleria Duty Free and already accounts for a double-digit share of the downtown store’s sales. Galleria operates Korean and
Chinese language online and Internet shopping mall services and has set ambitious sales growth targets. “Online shopping is important and
growing,” confirms Yang. “Our target is 30% online
sales growth, the same as for offline shopping. “It’s mostly Chinese customers
shopping online. We have Korean and Chinese language online malls. We offer perfume and cosmetics, jewellery, accessories and watches.” «
MAY 2018
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