Duty-Free Industry Leaders Lotte and Shilla to Release 'Hundreds of Billions' Worth of Duty-Free Inventory Next Week

Shilla Duty Free, Reservation Sales on Online Travel Platforms
Shipment Within 7 Days After Order
Lotte Duty Free, Combined Online and Offline Sales
First Offline Sales 'Attract Attention'

Duty-free items in stock scheduled to be sold soon at Shilla Duty Free. Photo by Shilla Duty Free

[Asia Economy Reporter Cha Min-young] The top two domestic duty-free operators are releasing a large volume of duty-free inventory. Shilla Duty Free will launch domestic sales through its independently developed online travel platform. Lotte Duty Free, on the other hand, will focus on leveraging various online and offline distribution channels such as Lotte Department Store and Lotte ON.

Shilla to Sell via Travel Platform 'Shilla Trip'

Shilla Duty Free announced on the 19th that it will start selling duty-free inventory online next week. The sales venue is 'Shilla Trip,' a travel product brokerage platform established by Shilla Internet Duty Free in December last year. Since direct sales through the duty-free shop are difficult, the platform takes reservations and orders, then delivers the products to consumers. To purchase duty-free inventory, customers can access the Shilla Trip menu from the home screen of the Shilla Duty Free mobile application or search for 'Shilla Trip' on an internet portal site and enter the platform.

There are about 40 brands in total. Discussions with luxury brands are ongoing. Products are expected to include imported luxury brands such as Prada, Balenciaga, and Moncler, mass prestige brands like Tumi, Tory Burch, and Michael Kors, as well as contemporary brands such as Maison Margiela, Ami, Marni, and Off-White. The product categories will mainly consist of fashion accessories including bags and sunglasses. Prices are set at an average discount of 30-50% compared to regular department store prices, considering costs including import customs clearance, taxes, logistics fees, merchandising costs, and card fees. Products will be delivered within 7 days after customs clearance.

Members of Shilla Internet Duty Free can conveniently purchase products without separate membership registration. When using 'Shilla Pay,' Shilla Internet Duty Free’s own simple payment system, customers can receive an immediate discount on part of the payment amount. Additionally, a portion of the payment is accumulated as 'S Rewards,' which can be used like cash at Shilla Duty Free for future shopping.

Lotte to Sell Online and Offline in Line with 'Korea Together Sale'

Lotte Duty Free

Lotte Duty Free will also start sales around the same time, coinciding with the 'Korea Together Sale,' a Korean-style large-scale sale event beginning on the 26th. Through nationwide online and offline channels including Lotte Department Store, Premium Outlets, and the integrated online mall Lotte ON, Lotte plans to release approximately 20 billion KRW worth of inventory in bulk. The Korea Together Sale is a large-scale consumption promotion event led by the government, running from the 26th to the 2nd of next month, with participation from the distribution industry.

Unlike Shilla Duty Free, which started online sales earlier this month, this event is the first offline luxury sale, attracting significant attention from the industry and market. For department stores, about 10 locations without luxury brands, such as Yeongdeungpo and Nowon branches, are expected to be selected. For outlets, Icheon and Paju locations are likely candidates. Although brands are undecided, it is anticipated that both mass prestige and some luxury brands will be included. An industry insider expressed high expectations, saying, "Duty-free inventory sales will be the catalyst and highlight of this Together Sale."

Meanwhile, Shilla Duty Free’s competitor, Shinsegae Duty Free, sold about 93% of 200 products offered in a reservation sale that started on the 3rd at SI Village, Shinsegae International’s SI Village. Customers eager to purchase luxury goods flocked to SI Village from early morning, causing the website to display error messages temporarily. Particularly, some popular items sold out immediately due to their nearly half-price, shockingly low prices, increasing consumer interest in inventory releases by the top two duty-free operators more than ever before.