Department stores woo foreigners

By Lee Hyo-sik

Struggling department stores here are making preparations to attract more foreign shoppers during the upcoming Korea Grand Sale, the country’s largest shopping festival geared toward attracting tourists during the off-season.

Large retailers plan to offer generous cash back and discount programs to foreign customers and introduce a wide range of promotional events. It a bid to woo young Chinese and other Asian tourists, they seek to capitalize on hallyu, or the Korean cultural wave sweeping the globe.

Lotte Department Store, the nation’s largest chain, said Wednesday that it will actively take part in the Korea Grand Sale, which will kick off on Jan. 11 and continue through Feb. 28, to boost revenue during the traditionally-slow sales season.

The festival is organized by the Visit Korea Committee, a quasi-government organization set up three years ago with the mission of drawing foreign tourists.

In 2012, nearly 23,000 department stores, shopping malls, hotels, restaurants, duty free shops, theme parks and other hospitality-related establishments saw their combined sales jump by 34.5 billion won ($30 million), thanks to the festival.

``More than 230 brands at our stores will participate in the sales event this year, up 15 percent from the previous year,’’ a Lotte Department Store spokesman said. ``We will extend the ongoing Challenge Sale, which will end on Jan. 20, through Feb. 28 for foreign customers. They will get as much as 50,000 won ($45) in cash back dependant on purchasing amounts.’’

The department store also plans to launch a marketing blitz on Facebook and other social network services to draw more young shoppers, as well as send cell phone text messages to Japanese customers who previously made purchases at its outlets.

``Those leaving postings about their shopping experience at Lotte will be awarded a 200,000 won gift certificate or other gifts through a draw,’’ the spokesman said. ``We have prepared more than 60,000 sales booklets in English, Chinese and Japanese. Over 30 interpreters will help non-Korean shoppers.’’

Korea’s second-largest Shinsegae Department Store also seeks to make the best use of the Korea Grand Sale this time as a way to cope with the ongoing sluggish consumer spending.

``We will not only offer various discount programs and free gifts to foreign shoppers, but also organize cultural events for them to learn more about Korea,’’ a Shinsegae spokesman said. ``About 300 brands at our three outlets in Seoul and one in Busan will actively take part in the upcoming festival.’’

The department store will also offer discount coupons which shoppers can use at participating shops.

``We will also offer cash back and complimentary gifts. Above all, we will set up booths at our flagship store in downtown Seoul where foreign customers watch folk music performances and make traditional style items. Such events will surely entertain non-Korean shoppers,’’ he said.

Hyundai Department Store said about 150 brands will join Korea Grand Sale this year, up 36 percent from a year earlier, providing foreign customers with a wide array of free gifts and special discounts.

The Galleria Department Store also plans to offer a special 5-percent discount to foreign shoppers applying for store membership. ``If they shop, they will get dried seaweed, sesame oil and other souvenirs popular with tourists for free,’’ it said.