Department stores seek marketing to secure loyal customers

Customers participate in Hyundai Department Store's environmental friendly campaign at its brand in Seoul, Oct. 12. / Courtesy of Hyundai Department Store

By Kim Jae-heun

Local department stores are pursuing different brand marketing to acquire loyal customers amid decreasing sales due to the COVID-19 pandemic.

More people are shopping online with technology making it easier to purchase almost any item with a mobile phone, and retailers need a new way to bring back customers to their stores.

Hyundai Department Store is trying to kill two birds with one stone through its “Eco-friendly VIP system.”

This is a program giving VIP benefits to customers who actively participate in environmentally friendly activities.

The store has asked customers to drop off plastic containers or pans they no longer use at its outlets, and is encouraging selling second hand clothes and unused mobile phones at flea markets. The retailer has also asked customers to use their own cups at coffee shops and shopping bags instead of plastic ones at grocery stores, while paying with mobile phones and receive receipts online.

Customers who participate in five out of eight such activities will be given VIP benefits such as three-hour free parking and a 5 percent discount off any item purchased at a Hyundai Department Stores. They will also be invited to various cultural and fashion events, and can get a maximum eight free cups of coffee before the program ends in December.

The VIP system started Nov. 1 and will last for two months.

“We decided to promote this environmentally friendly program to bring people's attention to such issues in our daily life by providing VIP benefits to those who participate. We will run the program at least twice a year,” a Hyundai official said.

Hyundai Department Store hopes to bring customers back to their shopping mall, particularly young customers who are interested in climate and environmental issues.

Shinsegae Department Store took a different path, partially turning its shopping venues into an art galleries.

Starting August, Shinsegae exhibited 250 works including paintings, photographs and sculptures at luxury stores and VIP lounges.

It first started with 120 works but received good feedback and so added 130 more.

At luxury boutiques, the art created synergy to boost sales of high-end items by 37.1 percent between August and September compared to 2019. Also, customers purchased 28 pieces of art from the boutique while shopping.

Galleria Department Store is hosting an Italian fashion event in collaboration with the Italian Trade Agency for three weeks.

At its Apgujeong branch, Galleria will introduce Italian classic fashion brands such as Marni and Cesare Attolini at its select menswear shop g.street 494 homme.

The retailer will offer high-end Italian fashion and lifestyle programs for VIP customers at its premium grocery store Gourmet 494 in Hannam.

Galleria in Gwanggyo, Gyeonggi Province, will run a pop-up store adopting the lifestyle theme “Italian Design Parade.”

“Retailers are offering events that cannot be copied by online malls. This is to bring customers back to shop at department stores and lock them in,” an industry source said. “Each department store is doing what it can and some have already produced results.”

“It has become imperative for retailers to offer new experiences to customers that will differentiate them from e-commerce firms. This is not an option, it's a must,” the source said.