The Hyundai, visited by foreigners from 80 countries this year... Approaching the '1 Trillion Club'

Achieved this year in the shortest industry period of 2 years and 10 months
Expanded role of endemic foreigners... up to 12.9% of sales
Core to leap after 1 trillion, "Foreigners including Jung"

The Hyundai Seoul, on the verge of achieving annual sales of 1 trillion won, is reaping significant benefits from the 'foreigner effect.' This is because it has established itself as a 'must-visit course' not only among domestic MZ generation (Millennials + Generation Z) this year but also among foreign tourists whose visits to Korea have surged with the full-scale onset of the endemic (periodic outbreak of infectious diseases). It is analyzed that foreigners will also be the key to the second leap in annual sales next year, after joining the '1 trillion club.'

Sounds Forest on the 5th floor of The Hyundai Seoul is decorated with a Christmas atmosphere.
[Photo by Hyundai Department Store].

Foreigners' Sales Share Reaches 12.9%... Japan Tops in Expanding Sales Centered on 'Hip Fashion'

According to Hyundai Department Store on the 23rd, foreign sales at The Hyundai Seoul from the 1st to the 22nd of this month increased by 915.7% compared to the same period last year. With the full-scale onset of the endemic, the monthly foreign sales growth rate this year recorded 704.2% in January, 857.0% in February, followed by a soaring trend of 1037.8% and 1092.5% in March and April respectively. Afterward, it maintained the 800% range and is now seeing an increase in growth rate again toward the end of the year.

Considering that foreign visits have clearly increased since the second half of last year, raising the baseline, this change is encouraging. It is even clearer when looking at the share of foreign sales. In January this year, it was only 3.6% of total sales but gradually increased to surpass 10% at 11.6% in June, maintained the 12% range after August, and is now at 12.9% this month, approaching 13%.

True to its nickname as the 'MZ playground,' foreigners visiting were mainly in their 20s and 30s. Among all foreigners, those in their 20s and 30s accounted for 35.3% and 37.2%, respectively, making up the majority. Additionally, those in their 40s were 12.5%, 50s were 9.4%, and those in their teens, 60s, and 70s or older were each around 1-2%.

By nationality, Japanese sales growth was the highest this year. From January to October this year, Japanese customers purchased 2520.2% more at The Hyundai Seoul compared to the same period last year. Taiwan (1422.5%), Saudi Arabia (1298.4%), and New Zealand (1250.2%) followed. Other countries with significant sales increases compared to last year included the United Arab Emirates (721.3%), Malaysia (525.2%), Indonesia (473.2%), the United Kingdom (410.4%), the United States (399.3%), Canada (347.2%), Australia (302.7%), Singapore (298.6%), and Thailand (244.3%), showing diversity across continents. At the beginning of this year, The Hyundai Seoul's foreign customers came from about 30 countries, including Southeast Asia, the Americas, and Europe, but recently expanded to about 80 countries, including less commonly seen countries in Korea's foreign visitor statistics such as Hungary, Chile, Kuwait, and the Czech Republic.

Popular product categories also differed by nationality. Japanese customers focused on 'fashion' brands such as 'Matin Kim,' 'Marithe Francois Girbaud,' and 'Heyg.' Southeast Asian countries like Taiwan and Indonesia frequently visited K-pop pop-ups such as the 'IVE×MINIBE pop-up store.' The United States recorded top sales in cosmetics brands like 'Sulwhasoo.' Middle Eastern countries showed high demand for luxury jewelry brands like 'Bvlgari' and 'Boucheron,' as well as domestic electronic products favored in those countries.

Final Sprint to Join the 1 Trillion Club... Foreigners Remain Key to Additional Momentum Next Year

The Hyundai Seoul is currently making a final sprint to expand shoppers toward the end of the year with the goal of achieving 1 trillion won in sales this year. The main Christmas display, 'Harry's Dream Shop,' is set up indoors on the 5th floor Sounds Forest of The Hyundai Seoul, and visitors must enter the department store to see it, increasing the potential for derivative consumption. The Christmas display at The Hyundai Seoul is also popular among foreign MZ generation visitors, and foreigners taking 인증샷 (certification photos) with it as a backdrop can be seen everywhere. If The Hyundai Seoul achieves 1 trillion won in sales this year thanks to the year-end effect, it will be the shortest period of 2 years and 10 months among domestic department store branches.

The role of domestic MZ consumers was significant in reaching the 1 trillion won sales record in a short period. Not only the spatial characteristics of The Hyundai Seoul, which reduced sales area and expanded resting spaces, but also the bold placement of online-based designer brands targeting the MZ generation along major pathways opened their wallets. After next year, the challenge for The Hyundai Seoul is to devise additional ways to increase sales further.

It is analyzed that foreigners, especially Chinese, will play a crucial role in expanding sales. This year, the role of Chinese customers, who accounted for a significant portion of domestic foreign shoppers before COVID-19, was minimal in The Hyundai Seoul's foreign sales. China did not rank within the top 10 countries for foreign sales growth at The Hyundai Seoul this year. Next year, as the base effect of COVID-19 disappears and sales are tallied based on the surge in foreign visitors due to the endemic, the role of Chinese visitors, who are gradually increasing their visits to Korea with some time lag, is expected to become more important.

The Hyundai Seoul is also actively attracting luxury brands to secure additional growth momentum after achieving 1 trillion won in sales. In particular, it is placing high hopes on the Louis Vuitton store opening next to the iconic central space by the Waterfall Garden (artificial waterfall) on the 1st floor at the end of next month. Louis Vuitton is the first among the 'AruSha' (Herm?s, Louis Vuitton, Chanel) brands to open a store at The Hyundai Seoul, which is expected to drive sales and also attract additional major luxury brands. Louis Vuitton is also a luxury brand favored by Chinese customers, who will be key to expanding foreign sales after next year.

An official from the department store industry said, "Next year, in an atmosphere where consumer sentiment is unlikely to recover easily, new momentum is needed to create results beyond what has been achieved so far, and in the case of The Hyundai Seoul, the potential for expanding foreign sales, including Chinese customers, will be key. Since foreigners prefer different product categories depending on their nationality, popup spaces and other strategic operations will be especially important next year."