SOUTH KOREA. Sales at South Korea’s duty free stores rose +36.4% year-on-year in the first nine months of 2016, reaching KRW8.93 trillion (US$7.9 billion), The Moodie Davitt Report can confirm.
Korea Customs Service data obtained by The Moodie Davitt Report showed an average spend of US$350 by foreigners (mainly Chinese) in the first nine months. The third quarter was particularly strong, at US$359. South Koreans spent an average of US$106 between January and September.
Some 15.6 million foreigners shopped in South Korea’s duty free stores in the period, making up 42.8% of the total. According to official statistics, 11.48 million foreigners visited the country in the first eight months of this year [the latest period for which official data is available]. Chinese visitors accounted for 48% of the total.
Source: Korea Customs Service; Mirae Asset Daewoo
Foreign goods represented 59.5% of total sales while the rest were South Korean products.
If the growth rate in overall sales continues until the end of the year then the KRW10 trillion mark will be passed for the first time [reaching KRW11.9 trillion].
Recently-released statistics showed that the vast majority of Chinese customers at South Korean duty free stores are now in their 20s and 30s. The figures from Shilla Duty Free and Lotte Duty Free underlined an accelerating shift from the previous reliance on middle-aged Chinese travellers. They also highlighted the increasing popularity of South Korean brands, especially in cosmetics.
As reported, five retailers – Lotte Duty Free, SK Networks, Shinsegae , HDC Shilla Duty Free and Hyundai Department Store Group – participated in the latest round of bidding for duty free store operation rights. The Korea Customs Service will announce the winners of four Seoul licences in December.
