Lotte, Shilla, and Shinsegae Ramp Up Online and Offline Promotions
From New Campaigns to Partnership Benefits
Hoping to Reverse the Industry Downturn
The duty-free industry is ramping up promotions in anticipation of a surge in travel demand ahead of the upcoming "Golden Holiday," which will last up to six days at the beginning of next month. After last year's poor performance due to high exchange rates and a slump in consumer spending, duty-free retailers are launching aggressive online and offline discount campaigns to capitalize on this rare opportunity.
Lotte Duty Free representatives are introducing a new marketing campaign targeting both domestic and international customers. Photo by Lotte Duty Free
According to industry sources on April 19, Lotte Duty Free is launching a new marketing campaign targeting both domestic and international customers. The campaign aims to strengthen the company's core competitiveness by making the unique benefits of duty-free shopping more recognizable to customers. Specifically, the slogan for domestic customers is "Shopping, Before You Leave," highlighting the limited-time nature of duty-free shopping available only before departure. For international customers, the slogan is "Tax-Free is Good, Duty-Free is Better," emphasizing the advantages of duty-free over tax-free shopping to raise awareness of duty-free purchases. The company plans to run outdoor advertising campaigns at major subway stations in Seoul and at locations frequented by foreign tourists.
Until May 4, Lotte Duty Free's offline stores will offer discounts of up to 70% on 41 well-known brands, including Ferragamo, Tory Burch, Est?e Lauder, La Prairie, and Johnnie Walker. Online, until May 11, Lotte Internet Duty Free is holding a "Shop Before Departure" special event. Through the "Hot Deal 25" promotion, 25 products across various categories available on Lotte Internet Duty Free?including popular cosmetics such as Aesop, Decorte, and SK2, as well as fashion items like Maison Kitsune cardigans?will be offered at discounts of up to 65%.
A Lotte Duty Free representative stated, "Through our new marketing campaign, we have prepared a variety of promotions and discounts so that customers can fully enjoy the appeal of duty-free shopping."
Shilla Duty Free will hold its mega promotion "Come to Shilla" on Shilla Internet Duty Free until May 4. This is a new mega promotion for domestic customers introduced by Shilla Duty Free this year, with the message "Shop at Shilla," according to the company. Through this promotion, all product categories will be available at discounts of up to 85%.
"Come to Shilla" features three themes: "Gather Right," "Enjoy Right," and "Leave Right." "Gather Right" is a team-building event where participants can receive bonus points by forming teams. The top teams, determined by the number of members ranging from two to thirty, will receive double bonus points worth up to 100,000 won, which can be used like cash with no purchase conditions.
"Enjoy Right" offers daily discounts through themed days: "Liquor & Health Supplement Day" (April 16-20), "Beauty Day" (April 21-27), and "Fashion Day" (April 28-May 4). During the promotion, fashion outlet items from brands such as Prada, Miu Miu, and Ami will be discounted by up to 75%.
"Leave Right" provides prepaid vouchers and partnership benefits for use at the Incheon Airport store. Customers who check in on the event page for three consecutive days will receive a "Shilla Prepaid 5,000 Won Voucher" that can be used like cash at the Incheon Airport store, as well as discount coupons for the airport lounge and direct train service.
Shinsegae Duty Free, 'Sunglasses and Fashion Special Exhibition' for the Golden Holiday. Photo by Shinsegae Duty Free
Additionally, Shinsegae Duty Free is targeting the Golden Holiday and the upcoming summer vacation season with a special exhibition of "travel essentials," focusing on sunglasses and fashion items. Until May 11, the event will take place simultaneously at the online mall, the Myeongdong main store, and Incheon Airport Terminals 1 and 2, offering all or selected items from participating brands at discounts of up to 50%.
More than 50 brands are participating in this special exhibition, including global names such as Sandro, S.Ferragamo, Anna Sui, and Vera Wang Eyewear, as well as leading domestic brands like RIETI, which ranks high in the fashion and eyewear categories on Shinsegae Duty Free's online mall.
Sunglasses are one of the most popular categories at duty-free shops, and sales trends for these products serve as an indicator of outbound travel demand. In fact, an analysis of company sales data by Shinsegae Duty Free showed that sunglasses sales in May last year increased by 46% compared to the same period the previous year, and during the summer peak season from July to September, sales grew by 30%.
A Shinsegae Duty Free representative said, "To celebrate Family Month in May and the Golden Holiday, we have selected popular sunglasses and fashion items from both domestic and international brands," adding, "We focused on offering a wide variety of brands and styles at reasonable prices to suit our customers' preferences."
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