Korean retailers expect a bigger National Day boost than last year. At Shinsegae Department Store, sales to Chinese customers during last year's holiday period (Oct. 1–7) rose 66% from the previous week. The gain stood out given that overall foreign customer sales at the chain grew 12.5% over the same period. At convenience store chain CU, 30% of last year's sales to Chinese tourists were concentrated in the three months from September to November, when the Mid-Autumn Festival and National Day fell.
Department stores and duty-free operators have responded with large-scale discount events for foreign shoppers. Lotte Department Store is running a "Global Shopping Week" through Oct. 11, offering a 10% rebate for UnionPay QR payments plus an additional 10% discount on a first-come, first-served basis. Lotte Duty Free is giving a 50-yuan discount coupon for WeChat Pay purchases of 1,200 yuan or more and preferential exchange rates for Alipay users.
Shinsegae Department Store and Shinsegae Duty Free have teamed up with the Korea Tourism Organization to hold the "Shinsegae Global Shopping Festa," involving 120 brands along with global payment and tax refund companies, with discounts of up to 20% depending on the brand.
Hyundai Department Store is partnering with payment providers including UnionPay to offer a 10% rebate and, through Oct. 25, coupons worth up to 30% off at more than 50 fashion brands including Adidas, Barbour and Club Monaco. Shilla Duty Free is holding a "Chugumi Festa" on its online China mall, handing out discount coupons for its Jeju store and online purchases.
Convenience store chains are also ramping up efforts. CU is running a CU-exclusive random coupon event on the WeChat Pay app through Oct. 25. GS25 has attached cards with Chinese-language descriptions to 50 best-selling items popular with tourists at 1,200 stores near Incheon International Airport and in areas such as Myeongdong.
With Chinese customers accounting for a growing share of foreign sales, retailers plan to expand services targeting them. According to the Korea Tourism Organization, Chinese tourists' share of total foreign tourist spending rose to 29.9% in August this year from 12.5% in August last year. "Chinese tourists account for the largest portion of the growth in foreign sales," a retail industry official said. "Even after National Day, we will continue to introduce brands favored by Chinese customers and differentiated exclusive products to strengthen our competitiveness."
