SOUTH KOREA. Lotte Duty Free is to host what it called its first major promotional and marketing event since the beginning of the COVID-19 pandemic amid rising expectations of an early resumption of overseas travel.
The Korean number one and world number two travel retailer said that as COVID-19 quarantine restrictions are eased around the world, the duty free industry has started preparing to welcome customers in earnest. While the Republic is still seeing over 240,000 new COVID-19 cases a day, the country is moving steadily towards a ‘Live with COVID’ policy that is certain to be maintained whatever the outcome of this week’s presidential elections.
Lotte Duty Free, led by CEO Kap Lee, plans to strengthen its marketing for Koreans in line with the recently announced abolition of the outbound US$5,000 (KRW6 million) duty free purchase limit this month.
Lotte Duty Free will present Korean customers who spend over US$5,000 at the retailer’s downtown stores after the purchase limit’s abolition with up to KRW960,000 (US$790) worth of LDF PAY – payment points that can be used like cash.
Lotte Duty Free described the campaign, which runs until 1 May, as its “largest giveaway event ever”. In addition, customers who have achieved a combined online and offline spend of US$10,000 by June will be given the opportunity to upgrade their LVIP membership.
Simultaneously, the retailer will offer incentives of boarding passes for so-called charter ‘flights to nowhere’ – flights that depart Korean airspace without landing overseas and which allow duty free shopping onboard.
These will apply to Air Busan flights departing from Gimpo Airport in Seoul on 19 and 26 March and Gimhae Airport in Busan on 26 March. Boarding passes will be distributed on a first-come, first-served basis to Korean customers who spend over US$550 per day at branches in Seoul and Busan.
The promotional campaign also features a dedicated discount event. From 7 March, products from several renowned international brands including Marc Jacobs, Tory Burch, Bali and Versace, will be sold at discounts of up to -80%. Valmont and Charlotte Tilbury are hosting various activities such as giving away gifts according to purchasing levels.
Flying high with a new visual identity
In related news, Lotte Duty Free recently refurbished its Korean downtown stores by applying a new visual identity.
The characteristics of each duty free category – such as cosmetics, fashion, and consumer technology devices – are graphically shaped by using six types of hot air balloons adorned with the message ‘Free travel in the post-Corona era’.
Lotte Duty Free plans to present these graphic images across its online and offline stores and at various customer contact points such as shopping bags, VIP cards, and the official website.
Lotte Duty Free Head of Marketing Division Lee Sang-jin said, “As the recovery to daily life is nearing, the demand for overseas travel is gradually increasing.”
