[Why&Next] Luxury Brands Elevate Department Store 'Prestige'... Continuing with Art Retail

Department Store Transformed into Gallery Beyond Shopping Space
Limitations of Luxury Strategy Defined by Existing Premium Brands
Capturing Upper Class and MZ Generation with Cultural and Artistic Content

Pompeii, the ancient Roman city that vanished in an instant due to a volcanic eruption 2,000 years ago, was recreated in the heart of Seoul. This exhibition, organized by Hyundai Department Store to commemorate the 140th anniversary of diplomatic relations between Korea and Italy, runs until the 6th of next month at The Hyundai Seoul. Visitors can see 127 Pompeii artifacts, including sculptures, frescoes, and jewelry, owned by the National Archaeological Museum of Naples. It offers a chance to revisit not only the brilliant culture of ancient Rome but also the meanings of life and death.

The department store industry is focusing on 'art retail.' By strengthening cultural and artistic content, department stores are establishing themselves as places where customers can experience art beyond just shopping spaces. This is a premium strategy aimed at attracting affluent customers who have a deep appreciation for culture and art. It also effectively lowers the barrier to expensive art, attracting new customers including the MZ generation (Millennials + Generation Z).

Inside the Pompeii exhibition organized by Hyundai Department Store to celebrate the 140th anniversary of diplomatic relations between Korea and Italy. This exhibition will be held at The Hyundai Seoul until the 6th of next month. [Photo by Hyundai Department Store]

From Museums to Opera, Department Stores Filled with Art

According to the distribution industry on the 26th, Hyundai Department Store is in the final stages of coordination with 'Robilant+Voena,' the world's largest gallery, to hold an exhibition covering everything from 14th-century ancient art to contemporary art at The Hyundai Seoul in Yeouido, Seoul, in June. Robilant+Voena is a world-renowned gallery that opened in London in 2004 and has branches in Milan, St. Moritz, Paris, and New York.

At the international art fair 'Frieze' held in Seoul last year, Robilant+Voena attracted the most attention by showcasing masterpieces such as Andrea Vaccaro's 17th-century work 'Judith Beheading Holofernes,' as well as works by Chagall, Renoir, Lucio Fontana, Damien Hirst, and Jeff Koons, priced between 2 billion to 5 billion KRW.

Earlier, Hyundai Department Store held the 'Daegu International Art Fair (Diaf) 2024 Preview in Seoul' from the 19th to the 28th on the 10th floor cultural hall of the Trade Center branch. The preview exhibition carefully selected about 100 works from among 4,000 pieces by 100 domestic and international galleries that will be exhibited at the Daegu International Art Fair, one of Korea's top three art fairs, and presented them first.

At Alt One, a complex cultural space on the 6th floor of The Hyundai Seoul, the National Museum of Modern Art, France exhibition was held from May to September last year.
[Photo by Hyundai Department Store]

The exhibition featured representative works by leading Korean artists such as Kim Jong-hak, Kim Geun-tae, Park Seo-bo, and Lee Ufan, as well as global artists including Agostino Bonalumi, Yayoi Kusama, and Ayako Rokkaku. Works by popular artists among the MZ generation, such as Choi Hyung-gil, Jo Myung-hak, Choi Ul-ga, and Kim Hong-ju, were also exhibited and sold. Additionally, a docent service was provided, with experts on site to explain the artworks.

Hyundai Department Store, which introduced a cultural hall at its Apgujeong main store in 1985, has set this year's catchphrase as 'The Artful HYUNDAI' and is putting great effort into art retail. Hyundai Department Store's expansion of cultural and artistic content is based on the strategy to transform department stores into spaces filled with art to inspire customers' daily lives. It also reflects the judgment that differentiation cannot be achieved by brand and product competition alone.

A Hyundai Department Store official said, "We plan to continuously showcase artworks that are difficult to encounter in Korea at department stores nationwide," adding, "In the future, through various artainment contents, we will provide customers visiting department stores with deep and rich artistic experiences, inspiration, and healing."

Shinsegae and Lotte Also Display Artworks Throughout Their Stores

Shinsegae Department Store plans to increase its spring semester cultural and artistic lectures by 20% compared to last year. As part of this, the Gangnam branch offers programs such as 'Europe Through Music and Art - European Museum and Art Gallery Tour' and 'Opera That’s Fun When You Know It.' The opera lecture next month will explore works by world-renowned musicians like Verdi, Puccini, and Mozart with vocalist Han Hee-jung.

At the Shinsegae Academy main branch, 'Kim Hye-eun & Jang Dae-geon's Salon Concert' is scheduled this month, and a sparkling wine class is planned for next month. The Centum City branch will host lectures such as 'Overseas Art Museum Tour - France’s Orangerie and Louis Vuitton Museum,' 'Whiskey Concert with Glenfiddich,' and a performance by Italian pianist Giuseppina Torre.

Shinsegae Department Store has focused on curation such as galleries but is significantly expanding cultural and artistic lectures this year. The strategy is to increase customer engagement through cultural communication.

The expansion of Shinsegae's cultural and artistic content has historical roots. Shinsegae introduced the first gallery space in a Korean department store in 1969. Since then, it has expanded its experience by hosting exhibitions of various famous domestic and international artists such as Kim Whanki and Picasso, as well as preview events for world-renowned art auctions like Christie's and Sotheby's. The fact that General Manager Jung Yoo-kyung majored in graphic design and has deep knowledge in related fields also supports Shinsegae's strengthening of cultural and artistic content.

Lotte Department Store held the 'Rejoice Special Exhibition' last month at its main store and other Lotte Galleria locations, displaying works by artists including ceramicist Park Young-sook, Yoon Ye-jin, Seo Seung-eun, and Moon Seo-min. At the Dongtan branch, works by artists Yoon Seo-hee and Lily, who express family love through cute animals like pandas and koalas, were unveiled. Additionally, an 'Artist Talk' event was organized in connection with the cultural center, allowing visitors to hear directly from the artists about their works.

Lotte Department Store opened the Lotte Gallery in 1979 and has continuously invested in cultural and artistic projects, including establishing the Art Contents Office (formerly Art Business Office) in 2019. When setting up the dedicated department, Lotte Department Store recruited an art expert as an executive to strengthen art retail. Although the Art Contents Office was recently moved from the planning division to the marketing division, the company still appears to be focusing on cultural and artistic content.

Art Retail Differentiates Department Store 'Class'

The reason the department store industry is competing to strengthen cultural and artistic content is that the premium strategy through global luxury brands has reached its limits. While global luxury brands operate standalone stores in major cities worldwide, in Korea they entered through department store branches. The department store industry attracted high-net-worth customers by hosting luxury brands. High-end luxury brands such as 'Erusa' (Herm?s, Louis Vuitton, Chanel) carefully select which department stores to enter to maintain exclusivity, leading to fierce competition among department stores to attract luxury brands.

However, with the COVID-19 pandemic, the proliferation of online luxury platforms increased sales channels for luxury products, impacting the identity of department stores as 'premium shopping spaces' through luxury brand stores. A department store industry official explained, "With the slowdown in department store growth, it was judged that simply attracting similar popular luxury brands would not retain customers," adding, "Strengthening cultural and artistic content was necessary for a long-term vision."

Lotte Department Store Avenue L Jamsil Branch is showcasing over 100 works by ceramic artist Park Young-sook, who popularized Korean moon jars, until the 21st.
[Photo by Lotte Department Store]

Another reason for emphasizing art retail is that core department store customers have many cultural and artistic demands. When department stores host galleries, they receive admission fees as rent and distribute tickets to VIP customers. Customers respond well because they can encounter famous artists' works without deliberately visiting museums.

The blurring boundary between art and fashion and the increase of MZ generation who enjoy art also contributed. It was judged that cultural and artistic content is suitable for conveying a luxurious and trendy image to them. In fact, Altwin installed at The Hyundai Seoul reportedly had 71.3% of visitors in their 20s and 30s last year.

The department store industry has stagnated over the past decade. Especially after COVID-19, there has been increased awareness that department stores must transform from 'places selling goods' to 'complex cultural spaces.' Therefore, the art retail trend in the department store industry is expected to continue. An industry insider said, "Strengthening cultural and artistic content aims to expand customer engagement and increase dwell time," adding, "If customers view exhibitions and shop while they are there, it will naturally have a positive impact on sales." Another insider said, "While premium department store images were built by attracting luxury brand stores, going forward, art retail will elevate the status of department stores."