SOUTH KOREA: LOTTE DUTY FREE Unlock the full potential... Beauty will play a huge role for Lotte in making sure it achieves its ambitious 2019 sales target.
“Our sales target of almost $8bn is big; the growth this year will be mostly from beauty products.”
Jeffrey Davis, Lotte Duty Free
Tower Duty Free Shop in spring. “This initiative is all about our
downtown business now,” according to Davis. “It’s all about treating the customer
invite-only and include Lotte Duty Free and Lotte Department Store premium card holders. “We did a Chanel VIP Lounge
event last December,” reveals Davis. “It was their first duty free event
with us; it lasted three days. We did a Shu Uemura event recently in our Sogong store’s VIP lounge. Coming up we will have a Giorgio Armani cosmetics event; Lancôme will also be having an event.”
This content is for subscribers only. Lotte’s new beauty concept now in bloom
More VIP lounges In Seoul, Lotte has already opened VIP lounges at its Sogong-dong and Gangnam COEX stores and plans to open another at the Lotte World
tours to South Korea in retaliation over the THAAD missile defence system crisis, Lotte posted record domestic sales totalling just over $6.8bn in 2018, representing a whopping 28% increase over the
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Lotte Duty Free recently introduced its Blooming Beauty cosmetics zone concept in three downtown stores; the Lotte Sogong-dong flagship and the Lotte World Tower in Seoul, as well as the Jeju downtown store. The Blooming Beauty shop-in-shop
Blooming Beauty at Lotte Duty Free’s Sogong-dong downtown shop.
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concept has been designed to promote small and medium South Korean cosmetics brands, which now number 130 in the Lotte Sogong Blooming Beauty shop. This opened in October in the new Star Avenue Corner outlet
the Star Avenue Corner outlet also features a Gentle Monster zone displaying popular South Korean sunglasses brands.
MAY 2019
right and giving them a unique experience. Korean customers want this and Chinese customers want it as well. “We are competing with China’s
domestic duty free industry for customers. The China domestic duty free risk for us is their Hainan Island domestic duty free shops and arrival shopping here. “Our idea is to give Chinese
customers a reason to come to South Korea. We’re after Vietnamese and other southeast Asian customers as well.” In spite of Beijing’s ban on group
previous year. Not content with recent success,
Lotte is looking for another year of double-digit growth in 2019. The company has set an ambitious domestic revenue target of $7.8bn for 2019, equivalent to another $1bn in sales or a 15% rise in airport and downtown shop purchases. “It’s a 15% increase, lower than
last year, but without our previous Incheon Airport Terminal 1 boutiques or perfume and cosmetics shops,” according to Davis. “Our sales target of almost $8bn
is big; the growth this year will be mostly from beauty products. “We are trying to have our South
Korean customers buy more; for example, buy two lipsticks instead of one.” In addition to renovation work
ongoing at the Sogong-dong flagship store, Lotte is renovating its well- known Lotte World Tower shop. “We are renovating the whole
Lotte World Tower beauty area,” reveals Davis. “All the new brands are coming in
between June and December. We will have big flagship brand counters which will enable us to display more products and provide a bigger experience overall. “We have just completed the Lotte
Duty Free COEX shop in Seoul. We renovated fashion on the lower level and expanded the beauty section on the COEX shop’s first floor. “We introduced Jo Malone,
MAC, Tom Ford and Guerlain, and expanded many of the cosmetics brand displays in size.” «
that faces the duty free store’s first floor, street level elevator lobby entrance across Star Avenue. The Star Avenue Corner outlet is a
replacement for another small annex shop in the adjacent Hotel Lotte second floor, which disappeared when the hotel carried out a recent renovation. In addition to Blooming Beauty,
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