Shinsegae to transform Jeju Island into luxury shopping designation
Aerial view of Jeju Shinhwa World on Jeju Island / Korea times file
By Kim Jae-heun
Shinsegae, operator of the country's largest retailer E-mart, has big ambitions to transform Jeju Island into a luxury shopping destination.
Jeju Island has become the most popular domestic tourist destination during the COVID-19 pandemic. In 2019, 15 million people visited. However, there is no single luxury boutique on the island, other than those at duty free stores in Jeju International Airport. But these are only open to international travelers.
In March, Shinsegae launched a pop-up store for French luxury brand Chanel at its The Shilla Jeju hotel, to test the market potential for luxury goods. The result was successful and local retailers were surprised to find out that many of the items there were sold out through pre-booking.
It was Chanel's very first pop-up store outside of Seoul, and Shinsegae did not promote the event considering the COVID-19 situation here was still serious. However, the mere name of the French brand was enough to attract quite a number of local shoppers before the opening.
“Not only Chanel but also other luxury brands here were surprised to see Chanel's pop-up store gaining so much popularity on Jeju Island,” a Shinsegae Simon official said. “We will make Jeju Shinhwa World into a premium luxury outlet that can attract both locals and internationals.”
Shinsegae Simon is a joint venture that was established between Shinsegae and America's Simon Property Group in 2007. Jeju Shinhwa World is its fifth luxury outlet opened by Shinsegae Simon and is one sixth the size of the joint venture's outlet in Yeoju, Gyeonggi Province. It is the first branch established in the middle of a tourist site, and Shinsegae Department Store President Chung Yoo-kyung has the ambition to build it into a landmark destination combining a shopping mall, resort and theme park. Jeju Shinhwa World already has a hotel, waterpark, convention center and a casino for foreign visitors.
Industry insiders still have doubts about the luxury business on Jeju Island, as Shinsegae is the first firm to pioneer the market there. Lotte Group showed a turnover over 1 trillion won before the pandemic but it was with its duty free business targeting international travelers only.
Shinsegae will not open any contemporary or sports brands like Nike or Adidas, instead seeking mutual growth with small local traders.
“We will bet on luxury brands solely to build Jeju Island as a global tourist destination like Hawaii,” a Shinsegae Simon official added.