SOUTH KOREA. Lotte Duty Free has partnered with Korean Seven, operator of the 7-Eleven convenience store chain, to expand local market sales of so-called domestic customs-cleared duty free goods.
Items will be sold on the 7-Eleven app from 2 May in an effort to target the MZ generation (a Korean pairing of two groups, Millennials born 1981-1995 and Generation Z born 1996-2005).
All products can be purchased without the buyer having to leave the country. They will be delivered to the purchaser’s home within two to three days.
As reported, Korea Customs Service (KCS) introduced a temporary scheme in mid-2020 to assist the country’s embattled travel retailers, whose revenues were severely hit by the pandemic-related slump in inbound and outbound travel. The scheme allows the sale of unsold duty free inventory (with relevant taxes and duties imposed) through local channels such as ecommerce, department stores, outlets and other platforms.
The 7-Eleven app will offer up to -50% discounts on bags, shoes, and wallets from six global luxury brands, including Bally, Coach, Marc Jacobs, and Tory Burch.
The partnership follows recent collaborations with fellow Lotte affiliates Lotte On and Lotte Home Shopping to deplete duty free goods locally.
A signing ceremony for a strategic MOU to create synergy between the two companies by driving an influx of new customers and an expanded product offer was held this afternoon at Lotte Duty Free headquarters in Jung-gu, Seoul.
Lotte Duty Free said that around 60% of 7-Eleven’s app members are in their 20s and 30s. This creates a big opportunity to target the MZ generation which has emerged as a major force in luxury goods purchasing, the company said.
To commemorate the opening of Lotte Duty Free’s luxury store within the 7-Eleven app, a ‘One Plus One (1+1)’ event will be held, offering consumers the chance to purchase two items for the price of one. From 2 May, one more identical product will be provided to customers who purchase event products (on a first-come, first-served basis) for the next four weeks. Starting with the Marc Jacobs bag in the first week, the campaign will then see Tory Burch bags and card wallets offered in the second to fourth weeks.
Lotte Duty Free also recently opened an exclusive store on the Lotte ON platform, allowing customers to purchase a wide array of luxury goods at reasonable prices. A second live broadcast with Lotte Home Shopping saw an “explosive” demand for beauty devices, driven by the anticipation of a return to post-COVID normality in the country, the retailer noted.
Park Seong-hoon said, “We are working with 7-Eleven to expand our customer base to the MZ generation, who will become the major buyers of luxury goods in future. We plan to use a variety of channels to make this happen.”
Lotte Duty Free said that its LUXEMALL online mall dedicated to domestic customs clearance duty-free goods in 2020, has sold over 40,000 products from 85 brands. The travel retailer also operates LUXEMALL offline stores at all downtown duty free stores, including recently renewed and reopened operations in Busan and Jeju.
