‘Chinese-speaking MZ’ Captivated Too!… Shinsegae Centum City Sees Significant Increase in Foreign Tourists

Significant Increase in Foreign Sales, Notable Growth in Chinese and Taiwanese Customers

Hyperground and New Contemporary Specialty Stores Highlight K-Fashion

As the influx of foreign tourists has recovered to pre-COVID-19 levels, foreign sales at Shinsegae Centum City in the first quarter have shown a significant increase.

Amid the noticeable rise in tourists from Greater China, including China and Taiwan, changing trends have also been observed, such as the expansion of luxury shopping into the 'K-Fashion' sector.

▲Foreign sales increased by 425%... Greater China customers lining up for tax refunds

Recently, the government decided to lower the COVID-19 crisis level from the current 'Alert' to the lowest level, 'Interest,' starting May 1, leading to evaluations that the country has entered a 'complete endemic' phase one year after declaring an endemic last year.

Accordingly, the number of foreign customers visiting department stores is increasing. On the 16th, in front of the tax refund counter on the third floor of the department store, Taiwanese customers gathered, creating a queue rarely seen during the pandemic. That day coincided with the arrival of a cruise ship carrying over 3,800 passengers from Keelung, Taiwan, at Busan Port, and sales from Taiwanese tourists increased by 588% compared to the previous year.

In fact, an analysis of foreign customer sales trends in the first quarter showed a 425% increase compared to the previous year. By nationality, foreign sales from major countries such as the United States and Japan increased by 160% and 55%, respectively, while sales from Greater China customers, including China and Taiwan, surged by 802% and 360%, respectively.

In particular, sales from Chinese customers have rapidly grown to nearly match the total foreign sales from last year.

The increase in foreign customers is attributed primarily to the complete endemic status and the full recovery of regional cruise tourism, as well as factors such as China's February 'Chun Jie' (Lunar New Year) demand and increased flights between Busan and Taipei, Taiwan.

The upward trend in foreign tourists is expected to continue for the time being. During April and May, due to holidays such as China's Labor Day (May 1?5) and Japan's Golden Week (April 27?May 6), the number of foreign tourists visiting Busan is expected to reach 30,000.

With department stores established as essential destinations for foreign shoppers, foot traffic is also expected to increase. Plans are underway to include an ice rink in addition to Spa Land in the foreigner-only tourist card 'Visit Busan Pass.'

This year, 50% of foreign customers visiting Spa Land through online channels such as the Visit Busan Pass, and by adding the ice rink, the strategy is to attract foreign demand seeking experiential tourism and create synergy.

Foreign group tourists.

▲K-Fashion also appeals to 'Greater China MZ'

While tourists from Greater China, mainly in their 40s and 50s, continue to show strong love for luxury goods, a preference for the latest 'K-Fashion' centered on those in their 20s and 30s has also been confirmed. This is attributed to the renewed Hyperground on basement level 2, specializing in young fashion, and the New Contemporary specialty hall on the 4th floor, which have successfully attracted the 'Greater China MZ' generation.

Over 50% of the total sales from Greater China customers come from overseas luxury brands, significantly exceeding the foreign average of 26%. Among luxury brands, high-end brands known as 'EruSha' (Herm?s, Louis Vuitton, Chanel) are preferred.

However, a changing trend away from exclusive luxury preference is also emerging. After overseas luxury and overseas fashion, Greater China customers spend the most at Hyperground and the New Contemporary specialty hall, accounting for 15% and 11% of sales, respectively.

Hyperground, which houses 20 out of 47 brands as regional exclusive brands, and the New Contemporary specialty hall, which introduced 23 out of 63 brands for the first time in the region, are introducing K-Fashion that is popular not only domestically but also overseas, targeting the 20s and 30s demographic from Greater China.

The 'one-pick' brand for Greater China MZ is 'Waritizen,' a traditional casual brand with a cute logo resembling a banana that has gained tremendous popularity. A representative of the brand stated, "Since a famous influencer from Greater China posted an SNS video introducing Waritizen, the number of Chinese and Taiwanese customers has greatly increased."

In line with the returning foreign customers, specialized marketing is actively underway, offering benefits such as a 7% mileage discount according to foreign VIP tier limits and a 7% gift certificate for purchases above certain amounts starting this month.

Gil Junho, head of sales planning at Shinsegae Centum City, said, "The department store, which is evolving into a global landmark beyond the national level, is emerging as a center of the Korean Wave by absorbing overseas demand not only in cosmetics and luxury goods but also in K-Fashion," adding, "As a shopping and tourism landmark of 'Global Hub City Busan,' we will actively promote promotions related to the influx of foreign tourists and strengthen related marketing."