‘Tourism No. 1’ Myeong-dong commercial district revives… Retailers ‘speed up’ targeting foreign tourists

The commercial district of Myeongdong is reviving. After the endemic transition, consumption increases rapidly, especially among foreign tourists. The distribution industry has begun to target demand by using various marketing methods such as exclusive pop-up stores and experiential events.

According to the Korea Tourism Data Laboratory on the 22nd, the amount spent by foreigners in Jung-gu, Seoul in April won 117.2 billion. This is an increase of eight times over the same period last year. Compared to the same period in 2019, before the corona, it has improved to around 88.7%. Since last February, sales in all industries, including major shopping malls, hotels, and duty-free shops, have been on the rise.

This is the result of the recent recovery of the Myeongdong commercial district. The head office of Shinsegae Department Store and Lotte Department Store located in Myeong-dong saw overseas sales increase by 13 times and 9 times, respectively, from January to April. Single duty free use by tourists is also increasing. This year, the Myeongdong Lotte Duty Free flagship store’s sales to Japanese customers increased by about 79% compared to the same period last year. Customers in Southeast Asia, such as Thailand, Vietnam, and Taiwan, increased by more than 100%.

Big hotels in Myeong-dong were also full of reservations from foreign tourists. L7 Myeongdong and Lotte City Hotel Myeongdong, both operated by Lotte Hotel, have an average occupancy rate of over 90% in April. The proportion of foreign guests reached 95% and 90%, respectively. Four Points by Sheraton Myeongdong, run by Chosun Hotels & Resorts, also saw its average occupancy rate and foreign guest ratio exceed 90% in April.

As interest in K-beauty increased, related sales also increased significantly. In April, overseas sales at the five stores in Myeong-dong operated by CJ Olive Young increased 31 times compared to the same period last year. In the case of the Daiso Myeongdong Station store, which reopened after a one-year absence this year, sales of beauty products in March increased fivefold compared to the same period last year.

It is also busy responding to the distribution price to meet the growing overseas demand. Lotte Department Store is operating a temporary store called ‘National Museum Goods’ on the B1 floor of the main store until June 4th. About 100 items and about 200 types of museum goods are on display.

Lotte Department Store held ‘Myeongdong Festival’ with Seoul from the 28th of last month to the 7th of this month. It is explained that 400,000 Koreans and foreigners visited Myeong-dong during the event, attracting a lot of attention. In addition, during the event, overseas sales at the main Lotte Department Store branch showed an increase of almost five times compared to the same period last year.

Shinsegae Duty Free is holding a ‘Myeongdong Stamp Tour’ event for foreign tourists with the Myeongdong Merchants Association. It’s an event that awards gifts according to the number of stamps drawn after visiting 3 out of 23 businesses in Myeong-dong, including restaurants, cafes and beauty salons. Since the start of the stamp tour, the number of individual foreign tourists visiting Shinsegae Duty Free Myeong-dong increased by 49% compared to the same period last year.

Lee Eun-hee, professor of consumer studies at Inha University, said, “The recovery of the Myeong-dong commercial district is a sign that foreign tourist consumption, which had contracted during the corona pandemic, is reviving. .

Reporter Min Kyung-ha maxkh@etnews.com