CEO Jeong Ji-young: "The Competitor of The Hyundai is Theme Parks"

"The Hyundai Seoul, Set as a Landmark Beyond the Department Store Framework"
"Connect Hyundai, Like Bibimbap Blending Premium, Value, and Local Elements"
Cheongju Chungcheong Branch Confirmed as Connect Hyundai 2nd Store

"Our competitors are places like Lotte World and Everland. We changed the paradigm of (department store) access and set it as a must-visit place when coming to Seoul.

Jung Ji-young, CEO of Hyundai Department Store, explained the promotion process of The Hyundai Seoul at the Global Fashion Forum held on the morning of the 23rd at the Textile Center in Samseong-dong, Gangnam-gu, Seoul. This means that it was set as a landmark that must be visited when coming to Seoul, breaking away from the existing department store framework.

Jung Ji-young, CEO of Hyundai Department Store, is delivering the keynote speech at the Global Fashion Forum held on the afternoon of the 23rd at the Textile Center in Gangnam-gu, Seoul. Photo by Korea Fashion Industry Association

At the forum hosted by the Korea Fashion Industry Association, CEO Jung delivered a keynote speech titled "THE HYUNDAI: Future Vision." He gave a lecture on how to find opportunities in crises, citing The Hyundai Seoul and Connect Hyundai Busan as examples.

CEO Jung presented the promotion process of The Hyundai Seoul as the first case. He revealed, "At the time of promoting The Hyundai Seoul, department stores were declining while online channels were rising. During internal discussions while pushing the project, the ratio of opposition to support was as high as 7 to 3, and it was evaluated as having a low chance of success."

Hyundai Department Store pursued The Hyundai Seoul because it was the only one among the three major department stores without a large store in Seoul. CEO Jung explained, "There was a strong internal consensus that we also needed a large store."

The Hyundai Seoul had unfavorable conditions compared to other department store locations. The COVID-19 pandemic overlapped with its opening period, affecting customer attraction, and it did not house major luxury brands, which are considered key indicators of department store success. Located in Yeouido, a representative business district in Seoul, the evening and weekend foot traffic sharply decreased. Due to its island-like location, access routes were also limited.

The strategy of setting The Hyundai Seoul not as a department store but as a landmark proved successful. Idle spaces appeared in The Hyundai Seoul, where new K-fashion brand stores were attracted and large pop-up stores were opened, which became a so-called "big hit." It established itself as an essential visit spot for the MZ generation (Millennials + Generation Z). The large participation of young employees in the promotion process of The Hyundai Seoul was effective.

CEO Jung emphasized, "We researched and newly developed new concept content while contemplating what the new future Hyundai Department Store would look like beyond existing department store services. We succeeded in achieving annual sales of 1 trillion won in the shortest period without online channels or major luxury brands, and from 2022, we ranked first in social media mentions for two consecutive years."

Jung Ji-young, CEO of Hyundai Department Store, is delivering the keynote speech at the Global Fashion Forum held on the afternoon of the 23rd at the Textile Center in Gangnam-gu, Seoul.
[Photo by Lee Myung-hwan]

Connect Hyundai Busan was also presented as a case of turning crisis into opportunity. Hyundai Department Store Busan, located in the old downtown area of Busan, faced a crisis as competing department stores opened large stores in Haeundae one after another. The nearby commercial district also declined, with a vacancy rate reaching 30%. At one point, the closure of the Busan store was even considered.

The countermeasure proposed by Hyundai Department Store was a complex store combining a department store, outlet, and leisure facilities. It is a form that all customer groups, including premium customers, ordinary people, young customers, and middle-aged customers, can use. CEO Jung said, "Connect Hyundai started with the idea of creating a store where entertainment, cost-effectiveness, premium, and local elements are blended like bibimbap. A month after the opening of Connect Hyundai Busan, the initial response is also good. We estimate the completeness at about 70%."

CEO Jung also presented six directions for the future of the distribution industry. The directions he suggested are ▲pursuing convergence models between business types ▲10 people 10 colors ▲increasing traffic ▲prioritizing customer happiness ▲simultaneous offline and online strategies ▲various attempts for global expansion.

Finally, CEO Jung concluded the lecture by emphasizing, "The successes of The Hyundai Seoul and Connect Hyundai were all cases of finding opportunities in the greatest crises. Korean fashion can be seen as facing a major crisis, but conversely, it could be a great opportunity to leap forward."

After the forum, CEO Jung told reporters that the second Connect Hyundai store was decided to be in Cheongju. Hyundai Department Store has been weighing the option of opening Connect Hyundai in Cheongju Central City, which will be completed in May next year.

Meanwhile, following CEO Jung at the forum, Professor Kim Nan-do of Seoul National University’s Department of Consumer Studies gave a special lecture titled "K-Fashion’s Direction Seen Through 2025 Keywords," and Yoo Jung-hyun, team leader of Corporate Research at Daishin Securities, gave a special lecture titled "Possibility of K-Fashion’s Global Leap." Lee Ji-yoon, CEO of Sum Project, Park Joo-won, CEO of Simonne Fashion Company, and Yoo Jin-sung and Park Ji-woo, co-CEOs of Monotype Service, held a discussion on "Activating the Competitiveness of K-Fashion Brands in the Global Fashion Market."