Foreign Tourist Sales Surge as Department Stores Diversify Services and Promotions Through Better Service and K-Culture Tie-Ins

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As the number of foreign tourists visiting Korea in the first half of this year is estimated to have topped 10 million, their spending has also risen.

According to the Ministry of Culture, Sports and Tourism, a total of 8.72 million foreign tourists visited Korea from January to May this year, up 21.0% from 7.21 million in the same period last year. In particular, foreign tourists' domestic card spending in May, including online purchases, is estimated at about 210 billion won.

Department stores are also seeing strong momentum. According to industry data, foreign sales at the country's three major department store chains reached 172 billion won in the first half. That is 80% of last year's full-year sales of 208 billion won, achieved in just six months.

To attract more foreign visitors, department stores are introducing a range of programs and promotions.

◇A scene from Hyundai Department Store's summer-themed event, 'VIVA RIVIERA,' at The Hyundai Seoul. Photo courtesy of Hyundai Department Store.
◇A scene from Hyundai Department Store's summer-themed event, 'VIVA RIVIERA,' at The Hyundai Seoul. Photo courtesy of Hyundai Department Store.

Hyundai Department Store is operating a 'Global CX Advisor' program to provide a global customer shopping experience. Under the program, foreign customers visit stores in person, experience the shopping environment and services, and suggest ways to improve them. The goal is to identify and address pain points that foreign shoppers encounter during the buying process.

Recently, the company selected five foreign advisors from four countries: one from China, one from Taiwan, two from Japan and one from Senegal. They are all women, with an average age of 29, and are currently living in Korea as either university students or working professionals. In the first half of this year, customers in their 20s and 30s accounted for 70% of Hyundai Department Store's foreign shoppers, and 81% of them were women.

The first cohort of Global CX Advisors will spend about two months, until early September, reviewing the entire shopping experience at major stores with a high share of foreign customers, including Hyundai Department Store's Apgujeong main branch, Trade Center Branch, The Hyundai Seoul, Hyundai Outlet Dongdaemun Branch and Hyundai Premium Outlet Gimpo Branch. A second cohort is also planned after the Chuseok holiday to reflect foreign perspectives from a wider range of angles.

After visiting stores, the first cohort will directly experience a variety of situations foreign tourists may face at department stores, including buying products, joining events, using convenience facilities and reporting lost items. They will then compile their findings into reports to share with Hyundai Department Store's CX planning team, and follow-up interviews will be held to discuss future improvements.

Last June, Hyundai Department Store became the first in the industry to launch 'Heidi,' an AI shopping assistant that can be used by both Korean and foreign customers. Supporting 11 languages, Heidi provides real-time information on pop-up stores, restaurants, exhibitions and promotions at Hyundai Department Store and Hyundai Outlet locations nationwide, making it easier for foreign tourists to access shopping information in Korea. At The Hyundai Seoul, foreign customers account for as much as 30% of Heidi users.

◇A model looks at the 'Tom and Jerry's Hanok Adventure' pop-up store at the atrium plaza on the first floor of Lotte World Mall in Sincheon-dong,
◇A model looks at the 'Tom and Jerry's Hanok Adventure' pop-up store at the atrium plaza on the first floor of Lotte World Mall in Sincheon-dong, Songpa-gu, Seoul. Photo courtesy of Lotte Department Store.

Lotte Department Store has expanded its 'Lotte Tourist Membership' from its Myeongdong main branch to Lotte Town Jamsil. It is also working to attract foreign tourists through a variety of promotions.

In line with that effort, Lotte Department Store will hold the 'Tom and Jerry's Hanok Adventure' pop-up store at the atrium on the first floor of Lotte World Mall in Jamsil until July 26. The event is an immersive pop-up that stages a chase between Tom and Jerry, who time-slip to the Joseon Dynasty against the backdrop of a traditional Korean hanok. By vividly recreating hanok features such as tiled roofs, wooden floors, kitchens and storage jars, the space is designed so that both domestic visitors and foreign guests at Lotte Town Jamsil can naturally experience Korean culture and take photos for social media.

More than 220 products have been prepared, including exclusive items designed to boost collectible value. In particular, the flagship 'K-Tom and Jerry plush dolls,' dressed in traditional Korean attire, come in a variety of lineups ranging from keyring versions to medium-sized sets.

The pop-up also features Tom and Jerry Korea Edition dolls in hanbok, random keyrings shaped like Tom and Jerry rice cakes, and a DIY zone where visitors can create their own keycap keyring by choosing the keycap and body they want. A participatory mission program linked to the photo zone, 'Jerry's Cheese Stamp Rally,' has also been set up. Visitors can complete three step-by-step missions: an SNS verification mission, in which they take photos with traditional props at photo spots such as the wooden floor or kitchen and upload them to their personal social media accounts; a 'Find Jerry' mission, in which they search for Jerry hidden among the storage jars and take a photo; and a 'goods purchase mission' inside the pop-up zone. Visitors who collect all three stamps will receive a specially made 'Tom and Jerry bandana' on a first-come, first-served basis.

Image = Shinsegae Department Store
Image = Shinsegae Department Store

After completely revamping its foreign VIP membership program earlier this year, Shinsegae Department Store will unveil a large-scale cultural project in Busan through 'K-HERITAGE Shinsegae' until the 30th.

To mark the first-ever hosting of the 48th UNESCO World Heritage Committee (WHC) meeting in Busan, the Korean Craft Exhibition <Hospitality>, organized by the Ministry of Culture, Sports and Tourism and the Korea Craft & Design Foundation (KCDF), and the 'Traveling Hanbok Shop' are being held at Shinsegae Centum City. As a sponsor, Shinsegae Department Store has created opportunities for domestic and international visitors to experience traditional Korean culture such as crafts and hanbok firsthand.

First, the 'Korean Craft Exhibition <Hospitality>,' held on the central plaza on the second basement floor of Centum City over an area of about 1,320 square meters, introduces the delicate aesthetics, craftsmanship and artistic value unique to Korean crafts through works by artists including Kwon Joong-mo, Lee Jeong-hoon, Yoon Sang-hyun and Seo Jeong-hwa. In addition to the exhibition, a pop-up store called 'Craft Garden,' where visitors can purchase works by local craft artists, is also open. On weekends, a professional docent program is offered so visitors can experience Korean crafts in greater depth.

In the spirit of regional coexistence, a hanbok exhibition from Busanjin Market, one of Busan's signature traditional markets, has also been prepared. It introduces the history and production techniques of traditional clothing as well as the stories of artisans. A variety of hands-on programs are also available for foreign tourists, including a hanbok rental event, a keyring-making activity using danggi ribbons, and an instant photo event. The 'Traveling Hanbok Shop,' a K-fashion brand pop-up that reinterprets hanbok in a modern way, is also taking place. Eight fashion brands selected from 52 applicants through a nationwide open call are participating: Liesl, Omyo, Ppoburi, Etoile, Kkomak by Dolsilnai, Oh My God, along with local Busan brands Hanwear and Bunuriot.

On the first basement floor of Centum City, Shinsegae is also operating a massive 110-pyeong 'Shinsegae K-Goods Shop.' In collaboration with the popular goods brand Mimidal, Shinsegae is presenting more than 800 items that reinterpret Korean cultural heritage in a modern way, including a drunken scholar cup, a Joseon royal wine stopper and a dancheong keyboard. It is also releasing limited-edition goods featuring Shinsegae's signature character IP, Puvilla, as well as fashion accessories created in collaboration between the Korea Heritage Service and outdoor brand National Geographic, allowing foreign tourists to carry memories of Korea and its culture into everyday life.

An industry official said, "A variety of department store promotions targeting foreign tourists have recently been rolled out," adding, "In particular, promotions are becoming more diversified, moving beyond simple one-time discount coupons to include a full overhaul of global membership benefits, improved payment convenience and marketing tied to K-culture content."

Kim So-hyung, Sportschosun

This article has been translated by GripLabs Mingo AI.

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