A Department Store Breaking Stereotypes... Cosmetics Section on the 3rd Floor?

Lotte Department Store Yeongdeungpo Branch Full Renovation... Cosmetics Hall Renovation Opened
Luxury Perfume Zoning Tailored to MZ Generation Purchase Patterns, New Introduction of Premium Beauty Brands

[Asia Economy Reporter Lim Hye-seon] Lotte Department Store Yeongdeungpo branch will newly open its cosmetics hall on the 18th.

The first floor, known as the face of the department store, has generally been considered the official location for cosmetics brands because 70% of the department store's main customers were women. However, Yeongdeungpo branch is relocating the entire cosmetics store to the 3rd floor for the first time in Lotte Department Store's history with this renewal.

The reason for moving the cosmetics store to another floor is a strategic move to secure the future customers of the department store, the MZ generation. The MZ generation is a compound term referring to the "Millennial generation" born between 1980 and 2000 and the "Z generation" born between 1995 and 2004. The 3rd floor of Yeongdeungpo branch is directly connected to the subway station, making it easy to attract foot traffic. By placing the cosmetics, the face of the department store, at the main entrance where customers enter from the subway station, it is expected to attract young customers from the MZ generation as well.

Yeongdeungpo branch has implemented 'specialized cosmetic content' points preferred by the MZ generation. First, following Lotte Department Store Cheongnyangni branch, the second 'Amore Specialized Hall' will open. This is a new type of experiential beauty store that actively reflects the untact (contactless) consumption trend and the needs of the millennial generation.

The 'Amore Hall' adds experiential elements by creating a contactless zone where customers can freely test products without face-to-face interaction. It features the Play Me Studio, where customers can freely experience various brands operated by AmorePacific, and detailed product explanations can be viewed using QR codes without asking staff.

According to Lotte Department Store, the existing Cheongnyangni Amore experiential store saw a 3% increase in the proportion of customers in their 20s and a 5% sales growth (in July) after opening. Also, by strengthening experiential elements regardless of brand, the average purchase amount per customer in their 20s increased by more than 50%, reaching a level close to the purchasing power of customers in their 30s and 40s. The purchasing pattern showed cross-purchasing of two or more brands, including luxury perfumes and premium cosmetics, and the usual purchase frequency (every 3 months) also shortened.

Within the Amore Hall, Hera offers makeup one-point lesson classes that can be reserved through the Beauty Angel APP and will be held regularly. Additionally, customers can experience AR augmented reality makeup services that allow them to check if a product suits them without direct facial testing. A VIP deep counseling space is set up inside Sulwhasoo for the millennial generation, who have high interest in beauty products, supported by active creators on SNS and other platforms. In 'Deep Counseling,' various customized makeup and skincare products are recommended according to the customer's skin type.

Furthermore, luxury perfumes, which are highly popular among the MZ generation, are prominently featured. Dior specializes the zones for 'J'adore' and 'Sauvage (men's perfume)' for the first time in Korea, and Chanel implements a zone for the high-end perfume 'Les Eaux de Chanel.' The niche perfume 'Aerin' is also showcased separately by Est?e Lauder.

Luxury boutique cosmetics popular among the MZ generation, such as 'Gucci Beauty,' 'Givenchy Beauty,' 'Tiffany Perfume,' and 'Burberry Perfume,' will also newly open, presenting a more sophisticated and luxurious store alongside existing cosmetic brands.