SOUTH KOREA: SHILLA I’PARK DUTY FREE US$1bn sales target in sight for Shilla I’Park


Shilla I’Park Duty Free tells David Hayes it is targeting more than US$1bn in sales this year after registering an impressive 33% increase in revenue last year.


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hilla I’Park Duty Free is currently enjoying the benefits of some ongoing


improvements to the I’Park Mall – in Seoul’s upmarket Yongsan district, north of the Han River – in which the store is situated. As a result of these improvements,


which began last year, the I’Park Mall has succeeded in attracting more customers. “Yongsan district, where we are


located, is an expensive area and I’Park is an important shopping centre with an Emart supermarket, a CGV multiplex cinema and a hub railway station,” a spokesperson from Shilla I’Park explains. “I’Park Mall was renovated last


year and is still being upgraded.” Hopes of achieving another


double-digit revenue increase this year are high, despite the Chinese Government imposing its new e-commerce law early this year. “Last year was a good year for us;


we had a lot of Chinese visitors and we invited more brands to our store,” says the spokesperson. “Our online sales business grew a lot as well. “China introduced its e-commerce


law in January, but our sales picked up after the second week in January. Our sales have grown monthly compared to last year’s figures. “Sales are growing but there is still


a risk; we cannot judge yet. We had double-digit growth in January and February.”


Chinese beauty influencers Perfume and cosmetics are firmly established as Shilla I’Park’s most successful category and represent about 75% of total sales. To help promote the store’s


beauty range to Chinese mainland customers, Shilla I’Park invites groups of Chinese beauty influencers to attend one-day promotional events at the store once or twice a month. “Chinese customers buy cosmetics and fashion items; street fashion like


MAY 2019


In February of this year, Shilla I’Park opened its ‘I Beauty You’ makeup testing zone on the store’s sixth floor.


jeans and T-shirts is the trend these days,” reveals the spokesperson. At present, Whoo, Sulwhasoo,


Laneige and Innisfree are the most popular Korean cosmetics brands among mainland customers at the store, while Boy London leads in fashion. “Makeup is becoming more


popular, especially among Chinese customers, and about 70% of our customers are female,” says the spokesperson. “South Korean customers


prefer skincare products; using skincare takes time to apply while Chinese women now want makeup for quick results.” Chinese customers split their


purchases between Korean and international brands about 50:50, according to the retailer. Chanel is likely to boost the international brands’ portfolio after being introduced recently, however, the store’s K-cosmetics offer has also been expanded with the opening of a new makeup testing zone. “Chanel cosmetics joined us in


November and has brought in more customers,” says the spokesman. In February of this year, Shilla


I’Park opened its ‘I Beauty You’ makeup testing zone on the store’s


The Shilla I'Park Duty Free store is targeting another double-digit revenue rise in 2019.


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“Sales are growing but there still a risk; we cannot judge yet. We had double-digit growth in January and February.”


Shilla I’Park Duty Free spokesperson


sixth floor, within the South Korean cosmetics display area. “We have gathered all South


Korean brands in the makeup zone, so customers can test all the brands there,” adds the spokesperson. “There are 16 brands there, which are mostly lower priced brands; they are well known among young Korean women and Chinese customers in their early 20s.” «


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