Welcome to Seoul, the retail lab

If you’ve ever visited South Korea, you know it’s impossible to not be amazed by the multitude of retail concepts – a true treasure chest of inspiration. NellyRodi’s South Korean agent Mihye Park tells us why South Korean retail is so innovative and shares the capital’s most noteworthy addresses.

I’m Mihye Park, the Korean agent for NellyRodi, a specialist in business strategy and creativity for over 30 years. I’m attuned to changes in creative industries such as fashion and design in Korea. 

It can be explained by different factors:

1. After the 1950 Korean War, South Korea recorded record growth, moving from almost near ruin to doing everything quickly. Today’s South Korea is the result. Because of this tendency, when there’s a new idea, Koreans implement it immediately and make any needed corrections, even if it doesn’t always work.

2. Korea has one of the world’s highest rates of smartphone ownership and internet penetration. Seoul’s digitally connected consumers are enthusiastic early adopters of new technologies, which encourages retailers to innovate with e-commerce, mobile payments and seamless online-to-offline experiences.

3. Korea’s sophisticated logistics network along with high consumer expectations has led to the development of extremely fast delivery services. Same-day or next-day delivery is common, even in densely populated urban areas, pushing global retailers to experiment with faster, more flexible options.

4. With the country’s location between Japan and China, there has been an increase in international brands using Korea as a retail laboratory for the Asian region. Luxury brands such as Louis Vuitton, Dior, Gucci and Burberry have opened their first Asian flagship stores in Korea and hosted pop-up events, exhibitions, restaurants and more.

5. So Korea’s retail sector is intensely competitive, with both local and global brands vying for consumers’ attention. Korean brands are responding to this situation by reinforcing their identity and creating seamless omnichannel shopping experiences. Brands often use pop-up stores, showrooms, experience centers and other strategies.
6. The global popularity of K-pop, Korean dramas and other forms of Korean culture fuels demand for Korean products worldwide. This K-wave effect feeds a thriving retail scene, with Seoul as the testbed for trendy products and experiences that can later be exported globally.

The Hyundai : Department stores in Korea are more like real estate businesses that rent out store space and share sales commissions. Therefore, the goal of existing stores has been to attract as many brands as possible. But Hyundai, which opened during the COVID period, introduced a new era for Korean department stores by showcasing only the best brands and expanding rest areas and experience spaces for visitors. It successfully replaced replacing aging department store customers with MZ [Ed: millennials and Gen Z] customers. And by managing VIP customers under 30 as a separate category. It also succeeded in establishing Hyundai’s image as a young, dynamic store. Department stores that have opened or been renovated since then are following Hyundai’s example.

 

Voir cette publication sur Instagram

 

Une publication partagée par 더현대 서울 (@thehyundai_seoul)

Shinsegae Sweet Park : Recognizing that desserts are becoming established as a new luxury for the younger generation, the Shinsegae Department Store opened the Sweet Park, bringing together the dessert brands that are trending on social networking services. Presenting 43 dessert brands in one 5,300 m² area dramatically increases the influx of customers to the department store.

@korea_unboxed Famous Korean desserts in one place! #sweetpark Address: Shinsegae Department Store Gangnam, B1 Floor, 176 Sinbanpo-ro, Seocho-gu, Seoul Operating Hours: 10:30 AM – 8:30 PM (KST) Dates: February 15th – March 14th, 2024 #shinsaegae #sweetpark #desserts #pinagencykorea #seoulkorea #seoultrip #seoulpinagency ♬ Darl+ing – SEVENTEEN

Casa Loewe : The first Loewe flagship store to open in Korea is set up like an art collector’s house that combines fashion, art, crafts and design. It also pays tribute to Korean artists by displaying the works of the Korean craftsperson who won the 2022 Loewe Prize. The store embraces creativity, tradition, craftsmanship, modernity and locality.

@loewe Wondering if @Q2HAN ever made it to the new CASA #LOEWE ♬ original sound – LOEWE

Dior Pop-up : The background is that a pop-up initially planned for three months became a pop-up mecca that will last for three years. So now it’s difficult to know whether this place is a pop-up or a flagship store. A proper building was built in an empty space in the new trendy Seongsu neighborhood, and the interior, which showcases collaborations with local Korean designers, is completely updated every season with new collections. The focus is on the experience, and visitors can expect a warm welcome. Reservations are required, and there is no pressure to spend.

@mimi.alxt Dior popup are my fav🤍☁️ #mustvisit #mustvisitplaces #mustvisitseoul #mustvisitkorea #seoulfind #성수 #성수동카페 #seongsu #popup #팝업 #팝업스토어 #팝업체험존 #dior #diorseongsu ♬ Strangers – Kenya Grace

Sulhwasoo Bukchon : The flagship store is located in Samcheong-dong, where Korean traditions are preserved. Nostalgia and the importance of tradition, overlooked when Korea was rapidly growing, are being emphasized again. Sulwhasoo, one of Amorepacific’s traditional premium brands, has remodeled a hanok [Ed: traditional Korean house] with a modern approach and is increasing the time visitors spend there by providing a cafe and an experience center.

@beautyandseoul The new Sulwhasoo store in Bukchon is gorgeous! 😍 #seoultravel #seoultrip #koreatravel #koreatrip #kbeautyaddict #sulwhasoo #seoultravels #seoul2022 #bukchonhanokvillage ♬ as it was x deja vu by favmusicvibes – favmusicvibes

Maison Margiela Flagship : In Seoul, where apartments are the main residences, this flagship store opened less than a month ago in a house next to the Lemaire store in the wealthy Hannam-dong neighborhood where there are many homes. Opening a flagship store in a house represents a big investment and a commitment to showcasing the complete brand identity through collections, lifestyle products and a cafe. Since Koreans spend one to two hours in a cafe at a time, a cafe is a very effective place to show all the facets of the brand identity and keep visitors in the store.

@cosm643 梨泰院駅が近いかな？ #repost spot_editor メゾン マルジェラの韓国内初のフラッグシップブティック＆カフェが、漢南洞にオープンしました。 1970年代に建てられた古い建物を改装した店舗は、ブランドのアイデンティティであるホワイトカラーでシンプルかつクリーンに装飾され、陽の光が降り注ぐ美しい景観も楽しめます。 ボナンザ コーヒーとのコラボで提供されるマルジェラ カフェでは、ブランドを象徴するステッチデザインのヘーゼルナッツ・クルスティアンケーキや、タビデザインのピスタチオ・ダックワーズケーキ、ピッコロラテ、シグネチャークリームドリンクなどを味わえます。 店舗では、メゾン マルジェラのフラッグシップブティックを記念して、5AC、グラムスラム、アパレルコレクションを独自に発売しています。 ブティックの床にはマルジェラを象徴するタビシューズの足跡もお見逃しなく。 ✔ 住所: ソウル 龍山区 漢南洞 657-91 ✔ インスタグラム: @mm6maisonmargiela #マルジェラ漢南 #メゾンマルジェラカフェ ♬ オリジナル楽曲 – cosm643

In Korea, hospitality is considered to be one of the basic virtues, so expectations are quite high, and hospitality must be considered at every touchpoint. Social networking services are well developed, and reviews have a huge impact on spending, so hospitality is very important in all areas, both online and offline. If you make even one mistake, it’s very difficult to recover, so you have to be careful. It’s also interesting to note that department stores manage VIPs by segmenting them according to how much they spend, and brands adjust the discount rate of coupons according to the size of the purchase. For customers who spend a certain amount, luxury brands take an almost individual approach.

• We want to see the flagships of the new brands we can’t find in Korea, so we can get to know them and really understand their brand universe.
• We prefer places that make strong connections between art and marketing, like the Dover Street Market or Le Bon Marché. These places are very inspirational in terms of display and showcasing collections.
• We want to understand and adopt new trends, for example the sustainability trend and vintage pieces at Le Printemps and Galeries Lafayette.
• Even for established brands, we want to see new collection concepts and displays. For those successful brands, it’s also important to understand how they evolve over time.