"Small Luxury Trend" Lotte Department Store Expands Smalt Stores Targeting MZ Generation

Lotte Department Store Premium Men's Accessories Edit Shop 'Smalte' 100% Growth
47% of Sales from 2030 Generation, 38% New Buyers in Their 20s
70% Female Customers, 40% Use for Themselves... Reflecting Genderless Trend
Opening on 23rd at Premium Outlet Paju, Suwon in May, Two More Stores in H2

A customer is browsing products at Lotte Department Store Smart Jungdong Branch.

[Asia Economy Reporter Yuri Kim] Lotte Department Store announced on the 11th that its premium men's accessories select shop 'Smalt (SMALT)' is gaining popularity among the 2030 generation.

Recently, the demand for luxury goods among the MZ generation and male customers has significantly increased. Among luxury sales to male customers at Lotte Department Store from January to March, the proportion of customers in their 20s and 30s reached 43.2%. Sales to male customers in their 20s and 30s at Lotte Department Store's luxury select shop 'TOPS' grew by nearly 60% compared to the previous year. As the purchasing age group becomes younger, the main luxury accessory categories have expanded from traditional items such as shoes, briefcases, and neckties to hats, keyrings, bracelets, phone pouches, and IT accessories.

Unlike in the past, there is a noticeable trend toward genderless fashion, with many cases where the same items are simultaneously offered by both men's and women's brands.

In response, Lotte Department Store introduced the premium men's accessories select shop brand Smalt at its Guri branch last year, the first of its kind in Korea, with the purpose of curating 'Small Luxury Goods' items for the emerging luxury demand among men in their 20s and 30s. This year, it is aggressively expanding the number of stores. Last month, the second store opened at the Jungdong branch, and the third store will open on the 23rd at the Premium Outlet Paju branch.

Looking at the purchase customer data from the Smalt stores at the Guri and Jungdong branches, sales have nearly doubled compared to the previous year before the stores opened. The sales composition ratio of customers in their 20s and 30s is 47%, and among new customers with no prior purchase history at Lotte Department Store, those in their 20s account for the highest proportion at 38%, indicating a strong influx of young customers.

About 70% of the purchasing customers were women, of whom 60% bought items as gifts, while the remaining 40% purchased for personal use. Accordingly, Smalt is continuously strengthening its genderless items. Items include fountain pens from the stationery brand 'TA+d' that uses natural materials such as bamboo and leather, lighting from the Danish design brand '&tradition', and natural bristle toothbrushes from 'ACCA KAPPA', known for its brush products.

Lotte Department Store plans to open the fourth store at the Suwon branch in May and add two more stores in the second half of the year, aiming to introduce new stores at a total of five locations in 2021.

Yeobyeonghee, Chief Buyer (Senior Product Planner) at Lotte Department Store, said, "Through Smalt, which was planned reflecting the consumption patterns of MZ generation customers who quickly consume unique and trendy luxury brands, we will introduce various Small Luxury Goods items to customers."