Hyundai Department Store VIPs Also Receive 'Special Treatment' at Japan's Hankyu... Joint Marketing Partnership

Second VIP Business Partnership Following Thailand's Siam Piwat Group
"Will Also Collaborate with Global Shopping Malls in Europe, Hong Kong, and More"

Hyundai Department Store announced on the 2nd that it has signed a business agreement for VIP benefit partnership with Hankyu Hanshin Department Store of Japan's H2O Retailing Group.This is the first time Hankyu Department Store has partnered with an overseas retailer for VIP exchange.

Hankyu Hanshin Department Store is a major Japanese retail company, and especially the Hankyu Department Store Umeda Main Store in Osaka is known for having a solid VIP customer base, ranking second in sales among all department stores in Japan and placing among the global top 5 stores.

Since early this year, Hankyu Hanshin Department Store has been implementing a ‘retail therapy (healing through shopping)’ strategy utilizing large-scale rest areas, hosting pop-up stores, and a giant indoor garden in collaboration with Hyundai Department Store. While exchanging know-how on attracting unique pop-up stores and the success of The Hyundai Seoul, Hankyu Hanshin Department Store reportedly decided to pursue VIP benefit partnerships to provide its customers with differentiated shopping experiences at places like The Hyundai Seoul.

With this business agreement, VIP customers of both companies can freely use each other’s VIP services at major Hyundai Department Store and Hankyu Department Store locations. Without prior reservation, customers can visit either department store and present the Hyundai Department Store app or the physical Hankyu Department Store VIP card along with their passport to immediately receive representative VIP services from both companies.

Specifically, Hankyu Department Store VIP customers visiting Hyundai Department Store Trade Center and The Hyundai Seoul will receive benefits such as access to VIP-only lounges, tickets to key content including the complex cultural space ALT.1, special discounts, and additional points accumulation. Hyundai Department Store VIP customers visiting Hankyu Department Store Umeda Main Store and Hankyu Men’s Tokyo Store can enjoy store-specific specialized services such as the personal shopping escort service ‘Shopping Attend,’ lounge access, special discounts, luggage storage, and hotel delivery of purchased items.

Hyundai Department Store’s move to form VIP partnerships aims to attract high-spending customers by providing a higher level of VIP service amid the growing crisis in offline retail. Since Hyundai Department Store Trade Center and The Hyundai Seoul are representative foreign shopping destinations, the effect of this VIP partnership is expected to be significant. In fact, from January to July this year, the foreign customer sales ratio at Trade Center and The Hyundai Seoul were 15% and 14.5%, respectively, ranking as the top two among Hyundai Department Store’s 16 stores.

Earlier, since May, Hyundai Department Store has also engaged in joint VIP marketing with Thailand’s Siam Piwat Group. VIP partnership services are provided between four stores each of both companies: The Hyundai Seoul, Trade Center, Pangyo, and Sinchon stores of Hyundai Department Store, and Siam Paragon, Siam Discovery, Siam Center, and ICONSIAM of Siam Piwat Group.

Following partnerships with Thailand’s Siam Piwat Group and Japan’s Hankyu Department Store, Hyundai Department Store plans to pursue additional partnerships with leading global shopping malls in Europe, Hong Kong, and other regions. Furthermore, beyond VIP benefit partnerships, it plans to provide customized shopping content and convenience services tailored to seasonal Korean tourism themes.

Yang Myung-seong, Executive Director of Sales Strategy at Hyundai Department Store, said, “As global companies’ interest in Hyundai Department Store’s offline retail operational capabilities?such as innovative space design led by The Hyundai Seoul, K-culture pop-up stores, and high-quality art marketing?increases, follow-up achievements like VIP service partnerships with overseas department stores are also emerging.”