<Anchor> This is a
friendly economic time. Today (17th) I will be with reporter Han Ji-yeon. Are you saying that department stores are making luxury stores for men only recently?
<Reporter> In
fact, department stores have an absolute proportion of female customers. Even if you go to a luxury store, you can see that most of the products are originally for women, and there are men's products in one corner, but the situation has changed a lot recently.
What you see in the picture now is a Louis Vuitton men's store in the Hyundai Department Store Trade Center branch, which is the second since it was installed in the main store in June. That means business is going well.
In June last year, we opened a men's luxury department store at our main store, and our 2030 sales have increased by more than 80% compared to last year. Hyundai Department Store's total men's luxury sales increased 133% compared to the same period last year.
Lotte Department Store also made the entire 5th floor of the main store into a men's luxury store, and more than 30 stores came in. The Jamsil branch also opened a men's specialty store.
Shinsegae Department Store was the first in the industry to try in 2011. We introduced a men's specialty store in the Gangnam branch, and earlier this year, sales of men's luxury products surpassed women's luxury goods.
<Anchor>
Why is it working so well?
<Reporter>
First of all, it is because men have started to decorate, but more and more men are investing their time and money in fashion and beauty, thinking that appearance is also competitive.
A lot of new words have been coined in the past to say ‘metrosexual’ and ‘grooming people’ with this meaning, but this atmosphere was reflected.
Leaking a little sideways, the men's beauty market has grown because of these characteristics. It has been showing steady growth of more than 10% every year compared to the previous year.
Men's cosmetics In the past, there were a lot of easy-to-use all-in-one products. But now, eye creams for men are also available and come in a variety of shades.
Speaking of luxury goods, especially after Corona, men's retaliatory spending has increased a lot. Since I have enough money to spend on overseas travel, I tend to buy a lot of luxury items.
Also, grooming people are mainly the MZ generation, and there are many cases of accumulating wealth through stocks, so there is a reason why their purchasing power has increased.
<Anchor> As
men's consumption increased, the department store sales also increased a lot, then.
<Reporter>
This year's '1 trillion club' So, it seems that there will be 10 department stores that will achieve 1 trillion won in annual sales. There were 5 department stores that had sales of 1 trillion won last year and the previous year. It's only doubled.
This year's consumption keyword is 'retaliatory consumption'. The main factor is that consumer sentiment, which had been suppressed by the prolonged corona virus, exploded with luxury consumption, and department stores marketed this part well again.
Among the department stores that have become '1 trillion club', one thing worth noting is the Hyundai Department Store main store, which is the first in 36 years since opening.I joined the 1st group club.
It's in Apgujeong-dong, Gangnam, Seoul. "Huh? Why is this the first time in a rich neighborhood? It's surprising." I looked it up and it's smaller than other places. Most department stores are on the 10th floor or higher, but they are five-story mini department stores.
Nevertheless, the biggest sales this time were the expansion of the Luxury Hall, which was originally only on the first and second floors, to all floors. Active marketing for VIPs and MZ generation was effective.
<Anchor>
Department stores really made a lot of money this year. But is one of the reasons why department stores have grown so much, that is, one of the main customers is the MZ generation?
<Reporter> When
we looked at the 2030 sales of the total luxury sales of the three major department stores, it accounted for up to 66%, although there are some differences by department store.
Of course, department stores should serve the MZ generation. We even create a separate VIP lounge for 2030. In addition to this, we are preparing a space for the MZ generation to enjoy by squeezing out various ideas.
There is a characteristic that the MZ generation likes to take pictures and communicate on social media. So, recently, many luxury brands are installing pop-up stores.
Pop-up stores are temporary stores that are created because there is no space to install new stores, and most of them are created to promote new brands or to see consumer reactions. But high-end luxury brands are choosing pop-up stores.
A department store operated a luxury pop-up store 15 times this year, an increase of four or five times compared to the previous year.
Another department store is said to be full of pop-up stores until the first quarter of next year.