The new Shinsegae Duty Free Gangnam store opened on 18 July.

Shinsegae Duty Free is targeting sales of KRW3 trillion ($2.6bn) in 2018 after registering a profit in 2017.

News that the company has turned in a profit comes six years after the company was launched in 2012. Sales in 2011 amounted to KRW144.3bn ($126.8m) which was the year Shinsegae first entered DF&TR with the takeover of Paradise Duty Free.

At this point, market share was a mere 3%. But should Shinsegae Duty Free reach its KRW3 trillion ($2.6bn) 2018 sales target, the figure will increase to 20%.

According to the retailer, the aim is to offer a ‘distinguished experience’ rather than ‘shopping spaces’. This was no doubt a key part of its strategy in the build-up to yesterday’s (18 July) opening of its second downtown store in Central City, Gangnam and is sure to be evident when it begins operations in Seoul Incheon Terminal 1.

INCHEON AIRPORT T1

After securing the Incheon T1 contracts (DF1 perfumes & cosmetics and DF5 fashion and leathergoods) in June, after Lotte’s decision to relinquish three of its four concessions, trading will begin in early August, as first reported by TRBusiness.

Meanwhile, consumers visiting the new Gangnam duty free store can look forward to a retail offer spread over 13,570sq m. The outlet occupies five levels in Shinsegae’s Gangnam department store, plus some additional space in the large adjacent commercial complex.

Shinsegae Duty Free says the new outlet will not only provide duty free shopping but ‘culture and life experiences’. The aim is to create a ‘tourism cluster’ around the Seocho and Gangnam area focusing on shopping, gourmet, art and medical experiences.

The retail offer is spread over five floors spanning 13,570sq m and the store is located in Shinsegae’s Gangnam department store.

Having strived to make Central City the number one shopping destination in Gangnam since 2016, Shinsegae’s Central branch has become Korea’s largest culture and tourism complex with a daily floating population of one million. Major tourism spots such as Seorae village, Apgujung-dong and Itaewon can be conveniently reached and various cultural, dining, beauty and medical establishment are in close proximity.

In partnership with these cultural and dining establishments, the new Shinsegae Gangnam Duty Free store will create new demand for nationwide tourism through the Express Bus Terminal connected to the store.

Shinsegae Duty Free  is hoping to create a new demand for nationwide tourism through the Express Bus Terminal connected to the store. 

GANGNAM STORE

Along with its other duty free stores including the one in Myeongdong which opened in 2016, the Gangnam outlet focuses on specialised merchandise such as luxury shoes, accessories and watches for individual tourists. Luxury shoe brands including Manolo Blahnik and Sergio Rossi are only available in the Gangnam store.

On entering the complex, customers are greeted by a 3D media facade on 7-metre ceilings. The facade displays welcome messages in various languages and Korean destination sports in 3D images.

Customers are greeted by a 3D media facade on entering the complex.

Son Yung-sik, CEO of Shinsegae Duty Free said: “The Shinsegae Duty Free Gangnam store will be the starting point of a changing duty free industry as well as a global tourism destination. Connecting with the Seocho, Gangnam areas and various places in Korea, we will strive to create new tourism contents and contribute to the growth of the Korean tourism industry.”

Regarding the offer, the store has introduced over 350 brands under three concepts — Young, Trendy and Luxury. Taking into account global consumption patterns of luxury goods and the ability of the store to attract individual tourists, Shinsegae Duty Free Gangnam has strengthened its luxury shoe, watches and accessories offer.

High-end shoe brands Manolo Blahnik and Sergio Rossi are among those to have opened duty free stores in the complex, while Gucci, Saint Laurent and Kenzo have introduced extended product line-ups featuring shoes, bags and accessories. Luxury watch brands including Breguet, Blancpain, Hublot and Glashutte original are also available.

Brands such as Helena and Kristie, Converse, Birkenstock, Melissa and Carlyn are available in selected fashion and shoe shops. Korean fashion brands including Nov, G Cut, Find Kapoor and Suecomma bonnie have also been introduced to spread the K Fashion phenomenon to foreign tourists. Local brands actually occupy 36% of total space which is understood to be the highest in the Korean duty free industry.

Other features of the Gangnam Duty Free complex include a kidult character shop (Volcano Shop) offering figures including Iron Man and Captain America. Electrical devices from Marvel, Bearbrick and Disney are also available.

A niche perfume connected to the lobby area of the JW Marriott Seoul hotel will also be revealed on the day the hotel opens.

Customers can visit the SNS Playground (Studio S) and take product shots to share on social media.