Shinsegae Department Store, Industry's First to Select 'Food Hall VIP' Customers

[Asia Economy Reporter Seungjin Lee] Shinsegae Department Store announced on the 6th that starting in April, it will select only ‘Food Hall VIP customers’ and provide them with special benefits.

The newly introduced VIP tier, ‘Food Hall Core customers,’ was implemented based on the idea that customers’ interest in premium food products is increasing.

Customers who visit the Shinsegae Department Store Food Hall more than twice a month and spend over 50,000 KRW will be selected. ‘Core customers’ receive various ingredient discount coupons every month, as well as related recipes and diverse food information.

‘Food Hall Core customers’ receive a smart message called ‘Season and Table’ twice a month, which includes introductions to seasonal ingredients personally selected by Shinsegae buyers, along with recipes, storage methods, and ingredient discount coupons.

‘Season and Table’ is a type of catalog provided via mobile text messages, and detailed information can be accessed through links within the message.

It is designed like a magazine, incorporating pictures, photos, and even videos, and introduces beverages such as wines and desserts that pair best with the dishes, providing information so customers can enjoy a high-end restaurant experience at home.

Unlike regular sales promotions targeting a broad customer base, this initiative targets only the food genre, offering personalized information and benefits.

Meanwhile, ‘Food Hall Core customers’ are driving department store sales. From February 29 to March 12, Shinsegae Department Store conducted a pilot selection of 40,000 Food Hall Core customers across all stores and sent ‘Season and Table’ messages containing information about the premium ingredient ‘Eolluk Doyaji’ and discounts of up to 45%.

Food Hall Core customers who received these smart messages spent on average 2.7 times more in the food category than before receiving the messages, and their visit frequency to the Food Hall increased by 1.8 times.

Wine introduced alongside cooking methods for premium ingredients also saw linked purchases. The three types of wine recommended with the Eolluk Doyaji recipes achieved sales exceeding plans by more than 10%.

Food Hall Core customers also contributed to sales in other categories, proving themselves as major spenders in the department store. In non-food categories such as fashion and accessories, they showed an average spending per visit about 2.4 times higher than regular customers, and their visit frequency was approximately 1.6 times higher.

Accordingly, Shinsegae will provide personalized and customized marketing to 80,000 Food Hall Core customers across all stores until the 16th. In April’s ‘Season and Table,’ they plan to collaborate with the well-known restaurant ‘Utender’ to introduce how to deliciously grill different cuts of beef, along with recommended sauces and grilled vegetables.

Seonghwan Lee, Executive Director of Sales Strategy at Shinsegae Department Store, said, “We are the first in the industry to select core customers of the Food Hall and provide benefits comparable to general VIPs, showcasing evolved personalized marketing. We will continue to lead the industry through personalized and customized marketing.”