Shinsegae Duty Free, Also Selling Duty-Free Items in Stock Eligible for After-Sales Service

Opening of SSG Special.com, Selling Watches, Jewelry, and Fashion Products Worth 7 Billion KRW
25-50% Discounts, Up to 50,000 Concurrent Users Allowed
Measure to Clear Excess Inventory, Products Restocked Weekly

[Asia Economy Reporter Lim Hye-seon] Shinsegae Duty Free is now selling stock duty-free items that can be serviced with after-sales (AS) support, rather than luxury goods.

According to the duty-free industry on the 9th, Shinsegae Duty Free has launched its own shopping mall, SSG Special.com, to sell stock duty-free items. It opened a test site on the 6th to test the stability of the IT system. Shinsegae plans to sell stock duty-free watches, jewelry, and fashion items worth 7 billion KRW through the mall.

Until now, luxury stock items sold at duty-free shops could not be serviced with AS. Duty-free shops said, "They are temporarily imported and cleared through customs for domestic sales including tariffs and taxes, and since the stock quantity is limited, product AS is not available." However, the watches and jewelry products sold on SSG Special.com this time can receive AS. Watch and jewelry AS, including length adjustment and accessory purchases, can be done at designated centers specified on the warranty card. Warranty cards are provided for watch and jewelry products.

The brands sold on the shopping mall include 19 watch and jewelry brands such as Fendi, Kenzo, Breitling, Hamilton, Frederique Constant, Mido, Casio, Armani Watch, Swarovski, Aigner, AllSaints, Prima Classe, Vivienne Westwood, Chervo, Mandarina Duck, and 12 fashion brands, totaling 31 brands. The main products are those sold at domestic duty-free shops from three years ago up to six months ago. Discounts of 25-50% are applied. Products are restocked weekly.

Shinsegae Duty Free opened its own platform to sell stock duty-free items in order to clear out slow-moving inventory. In fact, luxury brand products account for less than 20% of the total stock volume. As of last year, Shinsegae Duty Free's stock assets amounted to 636.9 billion KRW. Shinsegae Duty Free plans to sell high-end brand stock items on SI Village and SSG.com, while masstige products will be sold on SSG Special.com.

A Shinsegae Duty Free official explained, "In accordance with the government's temporary policy allowing the sale of duty-free products, we will sell products through various channels. SSG Special.com can handle up to 50,000 simultaneous users, and we are preparing a waiting ticket service in case of emergencies."

Earlier, the government allowed the duty-free industry, which has been struggling due to the COVID-19 pandemic, to sell long-term stock duty-free items domestically after import customs clearance procedures until October 29th for six months.

As the Korea Customs Service has allowed stock duty-free items to be sold in some common areas within duty-free shops, duty-free companies plan to sell stock items even at downtown duty-free shops.