[Popup Golden Age] Limited Time + Unique Stores... 'MZholic' Enjoying New Experiences

Shinsegae Gangnam Store 'The Stage' Located at 1st Floor Center
Fully Booked Until Year-End... Featuring Various Categories and Limited Edition Products
200,000 Visitors at Lotte Jamsil 'Tennis Popup', Open Run from Day One
Trendy Dessert Spots Introduced One After Another... A 'Bread Pilgrimage' Destination
The Hyundai Seoul, Pioneer of 'Popup Craze' Breaking Stereotypes
Idol and Character Popups Too... Over Half of Sales from 2030 Generation

Last August, a 'Lachun Dance Season 2' popup was held on the 5th floor of Sounds Forest at The Hyundai Seoul in Yeouido, Yeongdeungpo-gu, Seoul, to celebrate the comeback of Kakao Friends characters Ryan and Chunsik (hereafter referred to as the Lachun Duo). The character popup, which introduced the concept of the Lachun Duo and showcased related merchandise, attracted many customers, mainly from the 2030 generation.

[Asia Economy Reporter Yuri Kim] The distribution industry is experiencing a "golden age of pop-up stores." Beyond the original meaning of pop-ups as temporary stores operating for a short period, they have evolved into a channel that offers unique content in a limited time frame to MZ generation (Millennials + Generation Z) customers who enjoy new experiences and showcasing them on social networking services (SNS).

According to the distribution industry on the 7th, "The Stage," a pop-up space at Shinsegae Department Store Gangnam branch, has recently introduced a variety of product categories beyond global luxury brands, including cosmetics, golf clubs, and sneakers. The number of pop-ups has also increased noticeably. According to Shinsegae Department Store, the number of pop-ups at The Stage in Gangnam rose from 8 times in 2018 to 17 times this year (January to September), more than doubling in four years. Considering that reservations are fully booked until the end of this year, the gap is expected to widen further.

The Stage is located in the center of the first floor of Shinsegae Department Store Gangnam branch. The fact that a store located in a place symbolic as the "face" of the top-selling department store in Korea is a pop-up is significant. While pop-up stores have mainly featured global luxury brands such as Louis Vuitton, Chanel, Goyard, Gucci, and Bottega Veneta, the range of brands has recently expanded to include beauty and sports, diversifying the customer base.

In the first half of this year, a pop-up for the global beauty brand Est?e Lauder was held, offering special experiences such as engraving services by artist Jang Young-ho, allowing customers to enjoy a unique experience while purchasing cosmetics. In July, the premium golf brand XXIO’s "White Edition" was unveiled for the first time in the world. Last month, a limited edition product commemorating the 40th anniversary of New Balance’s popular 990 sneakers was introduced for the first time in Korea, featuring a vintage design reminiscent of a 1990s New York mansion, encouraging many visitors to take certification photos. A department store official said, "The Stage focuses not only on simple sales but also on allowing customers to experience products in an unusual store atmosphere," adding, "Being located in the center of the first floor attracts the attention of department store visitors, and the bold product lineup and interior design have attracted inquiries from a variety of brands."

Last month, customers were browsing the New Balance popup at 'The Stage,' a central popup space on the first floor of Shinsegae Department Store Gangnam in Seocho-gu, Seoul. The Stage has previously showcased popup stores mainly featuring global luxury brands such as Louis Vuitton, Chanel, Goyard, Gucci, and Bottega Veneta, but recently expanded its brand range to include beauty and sports. Moving forward, the plan is to increase the introduction of 'trendy lifestyle brands' targeting the MZ generation and others.

Lotte Department Store has boosted sales by promoting its Jamsil branch as a "holy ground for pop-ups." The tennis pop-up "The Court," held at Jamsil World Mall in June, was decorated like a giant court, attracting about 200,000 visitors over 10 days and gaining huge popularity. Customers lined up from the first day of the pop-up to purchase limited edition rackets such as those from Roland Garros. Thanks to its popularity, sports sales at Lotte Department Store grew by 25% year-on-year during the pop-up period. Earlier in May, the first-ever Valentino beauty pop-up in a Korean department store was held, successfully attracting customers returning to color cosmetics after the reopening of events. Riding the wave of pop-up popularity, the first official Valentino store in a Korean department store opened at the Jamsil branch on May 25.

Efforts are also being made to attract "trendy and unique dessert spots." Popular eateries on SNS such as Deokdeokdeok Bakery, Doho Project, and Orlak Bakery have been introduced one after another, continuously providing reasons for the MZ generation and others to visit the Jamsil branch. Recently, a large-scale pop-up held in collaboration with the donut brand Knotted also saw long waiting lines.

In June, Lotte Department Store hosted a tennis pop-up called "The Court" at Jamsil World Mall in Songpa-gu, Seoul, which attracted about 200,000 visitors over 10 days. The pop-up space was designed like a giant court, allowing visitors to explore tennis-related items such as tennis rackets, fashion apparel, and accessories all in one place, while various experiential events drew in everyone from tennis beginners (terini) to enthusiasts.

The driving force behind the acceleration of the "pop-up craze" is The Hyundai Seoul. The Hyundai Seoul has been recognized as a complex cultural space beyond the fixed notion of a department store, largely due to its diverse pop-ups covering fields from idols to characters and automobiles. The pop-up events for JYP Entertainment’s Stray Kids in June, ADORE’s rookie girl group NewJeans in August, and YG Entertainment’s BLACKPINK attracted not only fans of each group but also general shoppers, creating massive crowds. The NewJeans pop-up was so popular that waiting numbers exceeded 1,000 early on, and even visitors arriving in the morning had to wait 4 to 5 hours to enter.

The Hyundai Seoul also saw effects in diversifying its customer base and increasing sales. Targeting the MZ generation, three dedicated pop-up spaces were created on the basement level 2 "Creative Ground," and over 1.4 million customers in their 20s and 30s purchased products at The Hyundai pop-ups over the past year. The Hyundai pop-ups were held more than 150 times from January to July this year alone. Thanks to the rise of pop-ups, sales on basement level 2 exceeded 20% of total sales. The share of customers in their 20s and 30s in The Hyundai Seoul’s sales also accounted for 54.2%, more than half. The department store said, "The Hyundai Seoul pop-ups have established themselves as a representative channel for the MZ generation, leading to a continuous stream of love calls from various companies seeking contact with them."

An industry insider said, "Pop-up events are attracting great interest across industries because they allow real communication with the MZ generation in a short period and provide immediate customer feedback," forecasting continued growth.