Busan Branch Renovated and Unveiled on the 6th
Combination of Department Store, Outlet, and Art Museum
Competing with Starfield and Time Villas
Hyundai Department Store has revamped its Busan branch into an urban-type complex shopping mall called 'CONNECT HYUNDAI.' CONNECT HYUNDAI features a combination of the premium quality of department stores and the cost-effectiveness of outlets, along with cultural and artistic experiences from art museums, in line with recent trends in complex shopping malls. With the addition of CONNECT HYUNDAI, competition among the three major retail companies, including Lotte and Shinsegae, in the complex shopping mall sector is expected to intensify.
The first-floor view of Connect Hyundai, a new-concept complex shopping mall, which opened on the 6th after Hyundai Department Store renovated its Busan branch. [Photo by Hyundai Department Store]
Hyundai Department Store Opens New Concept Complex Shopping Mall
According to industry sources on the 9th, CONNECT HYUNDAI spans from basement level 5 to the 9th floor above ground, housing around 240 brands, and officially opened on the 6th. Each floor is organized with cultural and experiential facilities, popular brands targeting the MZ generation (Millennials + Generation Z), Busan local content, and a complex store featuring both regular and outlet products. On the 1st floor, 'The Visionary,' an imaginary animal sculpture designed by Jaime Hayon, a world-renowned industrial designer representing Spain, is displayed, and on the 2nd floor, a green lounge combining natural lighting and various plants has been created as a relaxation space.
CONNECT HYUNDAI is characterized by transforming various parts of the store into exhibition and experiential cultural art spaces. The Culture Center on the 9th floor, Culture Connect, operates short-term cultural experience courses lasting 1 to 2 months depending on the content, unlike the previous cultural center which ran on a 3-month semester system. For customers with young children, a Kids Cooking Studio operated by the Kids Cafe Sangsangsaem Play Museum and a Ballet School run by Julie’s Ballet, a specialized early childhood ballet education institution, will be continuously operated. On the 7th floor, MOKA (Hyundai Children's Book Museum) runs a children's art creation experience space called MOKA Plus.
CONNECT HYUNDAI also seeks differentiation through Busan local content. It has brought in famous Busan eateries such as 'Butter Record,' a crepe restaurant near Busan National University, 'Darijip,' known for tteokbokki, and 'Dim Tao,' a dim sum specialty restaurant in Haeundae. The edit shop 'RTBP,' which introduces Busan-based local fashion brands, has partnered with CONNECT HYUNDAI to set up an edit shop in the basement level 1 MZ specialty zone. Additionally, limited edition collaborative products from Busan-based street fashion brand 'Balansa' will also be showcased.
CONNECT HYUNDAI Challenges Starfield and Time Villas
CONNECT HYUNDAI has thrown down the gauntlet in the complex shopping mall competition where Shinsegae Group’s Starfield and Lotte Department Store’s Time Villas are established players. Complex shopping malls are gaining popularity for their experiential offline store content that differentiates them from e-commerce, and their competitiveness lies in offering products at various price points amid a prolonged economic downturn.
Unlike traditional department stores, these complex shopping malls focus on maximizing 'dwell time' by allowing customers to eat, drink, enjoy, and shop all in one place. Strengthening diverse content such as food and beverage (F&B) outlets and cultural experience events aligns with this strategy.
Among major retail conglomerates, Shinsegae Group was the first to launch a complex shopping mall brand with 'Starfield' in September 2016. At that time, Shinsegae Group Chairman Chung Yong-jin partnered with American global shopping mall development and operation company Turnberry to name Korea’s first new-concept 'shopping theme park' as 'Starfield First Hanam.' Starfield has expanded from the Hanam branch to Goyang, COEX Mall, Anseong, and Suwon branches, and is currently planning Starfield branches in Cheongna, Changwon, and Gwangju.
Lotte Department Store also renewed its existing Lotte Mall Suwon branch in May to launch a new complex shopping mall brand called 'Time Villas Suwon.' Time Villas is a new brand by Lotte Department Store that combines the premium elements of department stores with the diversity of shopping malls into a 'convergence-type shopping mall.' Suwon is the first branch, and new Time Villas stores are being considered for Daegu Suseong-gu and Songdo. Lotte Department Store plans to establish the Time Villas brand identity through the new Suseong and Songdo branches currently under construction.
CONNECT HYUNDAI plans to compete with a luxurious art museum atmosphere and unique experiences. A Hyundai Department Store official said, "CONNECT HYUNDAI means 'a space connecting all the joys of the world,'" adding, "We plan to offer customers a new shopping experience by proposing a 'new-concept practical retail model' that connects premium and practicality along with 'glocal cultural and artistic content' where global and local coexist." The official also added, "We intend to design the space and cultural content, harmonized with artworks, to make CONNECT HYUNDAI a 'certification shot hotspot' that people will want to upload on social media (SNS) everywhere."
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