South Korea’s department store chains are going all-out to attract male consumers who have emerged as big spenders recently.
Shinsegae Department Store’s Gangnam branch, which has the highest sales among domestic department stores, remodeled its men’s section at the end of last month to target the “MZ generation,” a Korean term referring to millennials and Generation Z.
In collaboration with British design studio gp studio, which has participated in various retail store projects, including London’s high-end department store Harrods, the branch used achromatic marble and installed gold frames to add a sense of luxury.
During the renewal process, the branch removed seven brands, most of which are domestic or have a low purchasing ratio.
The share of Contemporary in Shinsegae Department Store’s men’s fashion category rose from 40.5 per cent in 2020 to 46 per cent last year, while its share at the Gangnam branch jumped from 47.6 percent in 2020 to 50.9 per cent last year.
Meanwhile, Hyundai Department Store’s Pangyo branch, which has the highest sales among Hyundai stores, is shifting the focus of its men’s section towards a luxury concept targeting male customers with higher incomes, including those with professional IT jobs, starting from last year.
In particular, the Pangyo branch attracted a string of global luxury brands such as Louis Vuitton, Dior, Gucci, and Tom Ford that are popular among male consumers in their 30s. It also opened a high-end watch section.
According to Hyundai Department Store, the growth in the number of male customers has been on an upward trend, rising from 19 per cent in 2020 to 39 per cent in 2021 and 28 per cent in 2022.
Handsome Corp., the apparel unit of Hyundai Department Store Group, opened a men’s section for foreign fashion edit shop Tom Greyhound at the Pangyo outlet in March.
The retail industry is paying attention to whether the Pangyo branch could achieve annual sales of US$1.49 billion this year, a landmark achieved in 2019 by Shinsegae’s Gangnam branch for the first time among domestic department stores.
This story was originally published by J. S. Shin, via Korea Bizwire.
