Lotte Duty Free launches US$7 million domestic campaign to lessen THAAD impact

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Lotte Duty Free CEO Sun-wook Jang: Cause for optimism despite troubled times

SOUTH KOREA. Lotte Duty Free is to hold a KRW8 billion (US$7 million), 50-day Golden Holiday marketing promotion as it seeks to limit the impact of the fall-out from the THAAD anti-missile system dispute.

The retailer, in common with its peers, has been hit hard by a China National Travel Administration ban on group travel to South Korea from 15 March. With significantly fewer Chinese visiting Korea, Lotte Duty Free has placed additional emphasis on attracting domestic customers and other Asian nationalities.

 “Recently, the Korean tourism industry has been experiencing a lot of difficulties as a result of the THAAD [issue]. However, domestic sales have increased by about +20% compared to the previous year.”  Lotte Duty Free CEO Sun-wook Jang

The national campaign kicks off tomorrow, 14 April, and runs until 1 June, in time for the May Golden Week holiday season.

Lotte Duty Free CEO Sun-wook Jang commented: “Recently, the Korean tourism industry has been experiencing a lot of difficulties as a result of the THAAD [issue]. However, domestic sales have increased by about +20% compared to the previous year. I hope the domestic holiday season will help revitalise the domestic market.”

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Customers at Lotte World Tower will receive tickets to the Lotte World Aquarium and the Lotte World Tower Observatory when they spend a certain amount

Customers who spend over US$300 at the retailer’s downtown duty free stores in Seoul will receive a prepaid card worth up to KRW320,000 (US$281). Those making purchases at Incheon International and Gimpo airports will be entitled to receive a prepaid card worth up to KRW160,000 (US$141) and KRW240,000 (US$211) respectively.

A travel compression bag will also be gifted to customers spending over a certain amount from 21 May. At Incheon, Gimpo and Gimhae airport stores that amount is US$400. At the retailer’s downtown duty free stores it is US$600, where an art collage and carrier cover are also available on a first-come, first-served basis.

Additionally, Lotte Duty Free is hosting a Melbourne Australia Fellowship with Australia Tourism and Singapore Airlines from 14-21 May, and is offering 10 customers the chance to travel to Australia between 8-14 June. Customers spending over US$1 can enter the lottery on Lotte Duty Free’s website homepage.

Wedding customers will be presented with a set of celebratory teacups when they spend over US$1,200 at Lotte’s Seoul and Busan downtown duty free stores, again on a first-come, first-served basis. They will receive an additional KRW50,000 (US$44) prepaid card when spending over US$1,000 in offline locations.

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Lotte Duty Free has been hit hard by a China National Travel Administration ban on group travel to South Korea

Events will also run at individual stores. At Lotte World Tower, customers spending over US$1 will be entered into a lottery to win a one-night stay in the Deluxe Suite at Lotte World Tower Sigirang Residence or at the Sigilel Deluxe. Two tickets to the Lotte World Aquarium will be presented to customers who spend over US$1,200, while two tickets to the Lotte World Tower Observatory will be gifted to customers who spend more than US$1,600.

At three Seoul stores, discounts of up to KRW200,000 (US$176) are available for purchases of watches and jewellery products worth over US$500.

The events coincide with the 2017 Lotte Duty Free Family Festival, which will this year commemorate the 50th anniversary of Lotte Group and the opening of the Lotte Duty Free World Tower.

A number of K-Pop artists and bands will perform at the event. Customers spending more than US$300 at Lotte’s Seoul downtown stores and at Incheon and Gimpo airports will receive two concert tickets per person on a first-come first-served basis. Lotte Card customers can receive additional tickets when they spend more than US$400.

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