Have You Visited Cheongdam Luxury Street Recently... It Has Become a New Playground for 2030s

Shinsegae International, Luxury Specialty Store MZ Sales Share Increases from 41% to 68%

[Asia Economy Reporter Lim Hye-seon] Recently, as COVID-19 cases have repeatedly occurred in complex malls and department stores with heavy foot traffic, more customers are visiting the luxury brand street in Cheongdam-dong, where there are relatively fewer crowds and standalone stores, for luxury shopping.

In particular, among young people in their 20s and 30s, a new cultural trend called ‘dojang kkaegi’?visiting luxury stores around Cheongdam like touring tourist spots?is becoming established as a new form of play culture. One day, they buy a bag at the Celine store, another day they stop by the Dior store, have coffee at Caf? Dior, and then visit the Louis Vuitton store next door to appreciate the artwork.

Thanks to this phenomenon, Shinsegae International announced on the 26th that the sales proportion of the MZ generation at its 10 luxury brand specialty stores operated by the company increased from 41% in 2019 to 68% from January to September this year. Shinsegae International currently operates 10 luxury brand specialty stores in Cheongdam-dong, including Celine, Chlo?, Sacai, Alexander Wang, and Emporio Armani.

Luxury brand specialty stores are characterized by relatively low population density, making them safer from COVID-19 and allowing shopping in a comfortable environment. They also house all product lines of the brand in one space, making shopping convenient.

Moreover, as flagship stores representing the brands, they are designed not only to sell products but also to showcase the brand’s value, story, and concept, gaining positive responses from the MZ generation who value emotional experiences.

Familiar with certification culture, these customers visit luxury brand specialty stores to purchase products or enjoy various experiences while taking certification photos to share on social media. As a result, new products and events naturally spread by word of mouth and lead to sales.

Thanks to its sophisticated and stylish fa?ade, the Celine Cheongdam flagship store, known as a ‘certification photo hotspot,’ saw a 220% increase in customers in their 20s and 30s compared to 2019. The purchase amount by customers in their 20s and 30s also more than doubled during the same period.

Sacai, a brand whose collaboration sneakers sell out immediately and command premiums of tens of thousands of won in the re-sell market, is attracting many customers in their 20s and 30s with limited edition products sold only at the Cheongdam store. This year, the number of MZ generation customers purchasing at the Sacai Cheongdam store increased by 81% compared to the same period in 2019. Brunello Cucinelli, which had a higher main customer age group due to its high-priced cashmere sweaters costing over 2 million won each, has seen its Cheongdam store’s customers in their 20s and 30s increase by more than 80% compared to 2019, thanks to its exotic atmosphere reminiscent of Italian fashion stores.

A Shinsegae International official said, “As the culture of visiting multiple luxury stores continues to spread, we are planning various marketing strategies that allow the MZ generation to enjoy both shopping and entertainment together,” adding, “We will create spaces where customers will deliberately visit by making the brand’s value, service, and innovation?experiences only possible offline?available.”