"Beauty Customers Prefer SPA Brands"... Hyundai Department Store Sees Sales Jump with AI Application

Hyundai Department Store Launches AI-Based Purchase Pattern Analysis
'Data Marketing 2.5' Project Begins
Maximizing Efficiency with 'Preference-Targeted' Content

Hyundai Department Store announced on the 11th that it will launch the 'Data Marketing 2.5' project, which provides personalized marketing through customer data analysis based on artificial intelligence (AI) technology.

Hyundai Department Store Apgujeong Main Branch. Provided by Hyundai Department Store

This project aims to analyze the consumption patterns of numerous customers using stores nationwide and implement precise targeted marketing. Through AI machine learning processes, common characteristics are derived and classified by customer groups, and marketing is conducted with 'preference-targeted' content tailored to each classification.

Previously, Hyundai Department Store piloted Data Marketing 2.5 at the Sinchon branch last year. Based on the analysis that customers who mainly purchase beauty products at Sinchon also have a high purchase rate of SPA (manufacturing and distribution integrated apparel) or sports brands through linked purchases, various targeted marketing campaigns were carried out. As a result, the average spending per customer in the beauty category increased by 13% in October and November last year compared to the same period the previous year.

A Hyundai Department Store official said, "We will actively implement 'Deep Retail' that provides personalized marketing even in offline retail by expanding Data Marketing 2.5 to various stores."