Art Exhibitions and Live Broadcast Days... The Reason Behind Department Store Transformations is 'MZ'

Surging Interest in Art Investment
Lotte Department Store's 'Flex Art Exhibition'... Achieves Sales Target in One Week
Stylist Live Broadcast... Simultaneous Online and Offline Strategy

Customers are viewing art pieces at the Galleria Department Store Luxury Hall 'Art Project' exhibition hall.

[Asia Economy Reporters Yuri Kim and Chunhan Lim] Department stores are rolling out various incentives to capture the MZ generation (Millennials + Generation Z), who have emerged as major consumers in the market. They are employing a two-track strategy targeting both online and offline markets simultaneously to secure customers.

◆ ‘Collection beginners’ and ‘Art beginners’ focusing on art tech = Art investment, once considered exclusive to the wealthy, is becoming more popular among the general public. The terms ‘Collection beginners’ and ‘Art beginners’ (컬린이·미린이, combining collection/art + children) have even emerged. Department stores are focusing on art marketing by exhibiting and selling artworks. This strategy also aims to win back customers lost to online channels during the COVID-19 pandemic by offering rare and unique artworks.

According to Lotte Department Store on the 6th, the ongoing ‘Flex Art Exhibition’ at the Jamsil branch achieved its initial sales target in less than a week. They carefully selected about 90 works from 10 artists, with prices ranging from a minimum of 600,000 KRW to a maximum of 70 million KRW, averaging around 11 million KRW. Shinsegae Department Store opened an ‘Art Space’ at its Gangnam branch to exhibit and sell artworks, selling over 400 pieces from August last year to last month. Galleria Department Store held the ‘Michael Scoggins Special Exhibition’ at its luxury hall in May, selling 10 out of 11 pieces on the first day and eventually selling out all the works.

Especially, the MZ generation is showing great interest in artworks. For them, art serves both as a way to express their individuality and as an investment tool. Interest has grown as news of celebrities like BTS’s RM investing in and collecting art has spread, drawing more visitors to exhibitions. However, due to the high prices of artworks, the actual buyers tend to be in their 40s and 50s. A Lotte Department Store official said, “Various age groups, including those in their 20s and 30s, show interest in art exhibitions and sales, but the final purchasers are mainly those in their 40s and 50s with greater purchasing power.”

◆ Department store brand shopping goes contactless = As untact (contactless) shopping becomes established among the MZ generation, traditional offline channels like department stores are attempting changes by strengthening live commerce. Lotte Department Store will hold ‘Live Day’ on the 9th, showcasing major department store brands in a relay format. The ‘Survival Back Live (100LIVE),’ a competition format featuring famous designers and stylists such as Yoni.P, Koo Donghyun, and Choi Heeseung, will be broadcast from 11 a.m. to 8:30 p.m. via the Lotte Department Store Mall and Lotte ON applications.

While individual brand live broadcasts have been held before, this is the first time a day-long theme has been set with selected participants to conduct a live show format. A Lotte Department Store official said, “Viewers can enjoy styling tips from stylists with fan bases while purchasing products at discounted prices, differentiating this from typical live broadcasts. We plan to continue organizing themed live broadcasts monthly to add more viewing enjoyment.”

Department stores continue their live commerce efforts. Shinsegae Department Store not only holds 4 to 5 live broadcasts monthly through its integrated online mall SSG.com but also started live broadcasts using Naver since June. Hyundai Department Store is also differentiating itself with programs like ‘Hyundai Food Hall Sanji Live,’ a live commerce program specializing in fresh food.