Approval of Group Tourist Visas for China Visitors
Increase in Myeongdong Cosmetic Road Shop Stores
One Additional Store Each for Innisfree and Tony Moly
The Myeongdong commercial district is regaining vitality due to China's approval of group tourist visas for visits to Korea. Cosmetic road shops that had closed due to the THAAD (Terminal High Altitude Area Defense) retaliation measures and COVID-19 are now reopening as the number of foreign tourists increases.
China has lifted the restrictions on group tours to Korea for the first time in 6 years and 5 months, raising expectations that this will be a boon for the domestic travel, hotel, and duty-free industries. Foreign tourists, including Chinese and Japanese, are strolling the streets of Myeongdong, Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@
According to the distribution industry on the 29th, Nature Republic recently completed interior renovations at its 'Myeongdong World Branch,' known as the most expensive land nationwide. Currently, it operates a total of five stores in Myeongdong, Seoul, and considering the gradual increase in foreign tourists, it plans to expand offline stores to about 50 nationwide, including Myeongdong.
CJ Olive Young also opened a new store in Myeongdong on the 18th. With this new opening, the number of Olive Young stores located in Myeongdong has increased to six.
Amorepacific's Innisfree additionally opened a new store in June. This is 1 year and 6 months after its withdrawal in December 2021. As a result, there are now a total of four stores operating in Myeongdong. Furthermore, Etude opened two more stores in February: Myeongdong 1st Street Branch and Myeongdong Central Branch.
In addition, Tony Moly opened the Myeongdong 1st Street Branch, Skin Food opened the Myeongdong UNESCO Branch, and VT Cosmetics opened the Myeongdong Branch near Exit 6 of Myeongdong Station.
Myeongdong, known as a battleground for K-beauty, had so many cosmetic stores that they occupied nearly every other building. This commercial district was an essential travel destination for Chinese group tourists (Youke). However, due to the THAAD retaliation measures and COVID-19, visits from Youke began to cease, causing the Myeongdong commercial district to shrink significantly, with stores continuously closing. Before the THAAD conflict in 2016, the number of Youke visiting Korea was 8,067,722, but the following year it sharply dropped to 4,169,353, and after the outbreak of COVID-19 in 2020, it decreased further to 686,430. However, with the resumption of Youke arrivals, the Myeongdong commercial district is expected to enter a recovery phase. Especially during this year's golden holiday (September 29 to October 6), which coincides with China's largest holidays, the Mid-Autumn Festival and National Day, sales are expected to recover to pre-COVID-19 levels.
Professor Kim Si-wol of Konkuk University's Department of Consumer Studies said, "There is a growing interest among Chinese consumers in mid-priced cosmetics," adding, "Korean road shop cosmetic brands also have a variety of mid-priced products, so they are expected to meet these consumer trends and produce positive results." He continued, "Moreover, although Korean cosmetics are affordable, their quality is comparable to international premium cosmetics, giving them competitiveness," and added, "Therefore, if Youke visit Korea in large numbers again, it will greatly help economic revitalization."
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