South Korea's department stores are expanding participation-based communities built around customers' interests and tastes. Rather than offering shopping perks alone, the strategy combines customer interaction and hands-on experiences to keep drawing people back to stores and encourage repeat purchases.
Lotte Department Store runs club memberships for office workers, centered on stores located in business districts, according to the retail industry on the 16th. Its main store operates a club called "Euljiro Working Men and Women" aimed at nearby office workers. At its Dongtan store, reflecting a location dense with large corporate offices and workplaces, the company launched an "Office Workers Club" that customers can join through the Lotte Department Store app, and this year's growth in membership has topped 40%. Members share shopping information within the community, while Lotte Department Store offers benefits tailored to each district, such as 7% to 10% discounts each month, gifts worth 5% to 10% of purchases, and coupons for food and beverage (F&B).
Shinsegae Department Store South City launched a customer-participation membership program called "Sports Crew" last month. Members earn sports mileage based on their spending and, according to accumulated activity, receive Shinsegae rewards along with coupons for its food market and F&B outlets. The program also includes a community function for customers to connect with one another. Members share workout selfies after exercising. Shinsegae encourages continued participation by giving top participants gift certificates worth 100,000 won (about $72).
Hyundai Department Store introduced a wine membership called "WAZIT" in May last year. Its core content is an offline party held every six months. Members can enjoy various programs, including networking, wine-themed talk concerts, gala dinners and DJ performances. The membership also offers discount coupons and free wine delivery. According to Hyundai Department Store, people in their 20s and 30s make up 51% of all WAZIT members.
Department stores have moved to strengthen these communities because customers' interests and tastes give them everyday points of contact. In the past, department store customer communities formed mainly around VIP shoppers who spent above a certain threshold. More recently, the scope has widened to include customers who share common interests such as running, sports and wine. The approach is seen as a strategy to build a sense of belonging and secure long-term loyal customers by providing a venue for experiences, information sharing and customer interaction that goes beyond selling goods.
"Recent consumption trends are shifting away from simply buying products toward sharing one's tastes and experiences with others," an industry official said. "Strengthening communities around shared interests broadens customer contact points and naturally encourages spending and repeat visits."
