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Tag: Lotte

  • Lotte dreams big with World Tower Duty Free store

    Lotte dreams big with World Tower Duty Free store

    Lotte Duty Free has announced a plan to make its World Tower Duty Free store into a landmark of North East Asia.

    Lotte will invest over 1 trillion won to make the location an international tourist spot that will exceed the popularity of its headquarters in Sogong-dong.

    Lotte Duty Free revealed at a press conference that it will be investing an additional 1.2 trillion won (US$874.97 million) over the next five years to expand the size of its duty free store, creating a one and only ‘Tourism and Shopping Complex Duty Free Store’ in the world.

    With the changes, Lotte has estimated that by 2020, it will have an accumulated 5 trillion won revenue in foreign currency, an added value of 4.8 trillion won, and direct and indirect employment of 27,000 people. The accumulated number of foreign visitors during this period is expected to be 28 million.

    Based on these numbers, Lotte plans to make its World Tower duty free shop the No.1 store in the world, as well as an international landmark.

    Lotte has suggested the creation of a ‘Gangnam Tourism Belt’ to reach its goals. By building a large-scale musical fountain, the company is hoping to make the site into a tourist hot spot like the Marina Bay Sands hotel in Singapore, or the Burj Khalifa in Dubai.

    Lotte Dury Free

    By promoting its duty-free store along with the highest observatory, a vineyard classic hall, an aquarium, a multiplex and Lotte World Adventure, Lotte is hoping to make World Tower the largest tourism hub south of the Han river.

    In order to attract more foreign visitors, Lotte plans to operate a city tour bus that connects Gangnam and other parts of the city, creating a Gangnam culture belt.

    Lotte Duty Free also announced that it has signed an agreement with municipal authorities in Songpa-gu, Gangnam-gu and Seocho-gu to cooperate in revitalising tourism in Gangnam.

  • Lotte and WalkerHill lose duty free licenses

    Lotte and WalkerHill lose duty free licenses

    Korea Customs has announced that the Lotte Group has lost its operating licence at its prestigious Seoul Lotte World Tower from next month, but retained its Seoul Myeongdong store, while the WalkerHill Duty Free store operation was also unsuccessful in retaining its long-held duty free licence at the Sheraton Grand Walkerhill Hotel.

    South Korea’s two principal Seoul-based newspapers – the Korea Times and the Korea Herald – both announced the winners today, after the results were initially held back by Korea Customs until halfway through the weekend (when the stock exchange is closed).

    TRBusiness reliably understands that this was intentional to guard against any chance of information leaks impacting on any company’s stock price due to insider trading.

    WalkerHill Duty Free

    WalkerHill Duty Free achieved a 46% sales growth in 2014 to $260m compared with $162m in 2013, with 80% of all sales made to Chinese customers. It also unveiled its new-look enlarged store in eastern Seoul last February. The duty free retailer is particularly well known for its high-end watches, carrying 70 brands in total and will be disappointed it has lost its licence. This year the retailer set itself a $350m sales target – some 35% ahead of its 2014 total.

    Meanwhile, Shinsegae has also won one of these duty free licences to convert part of its department store to duty free status, while it also successfully defended its Busan City duty free licence status. Last, but not least, Doosan has won its first duty free licence in Seoul.

    The loss of Lotte’s prestigious Seoul Lotte World Tower duty free licence will come as a big surprise to many and not least to Lotte, which regards this as the most prestigious purpose-built multi-million dollar duty free outlet within its portfolio.

    The WalkerHill Duty Free operation has also become an institution as one of the few retail operations that is an integrated part of both a hotel and a casino, attracting good customer levels.

    Lotte Tower in Seoul

    Lotte’s total duty free sales reached a record US$4.02bn in South Korea in 2014, representing a huge $750m hike in revenue, equivalent to a 22.8% increase. Even given its wide range of duty free outlets at both Incheon Airport and downtown, Lotte will be very disappointed it has lost its licence for this business, since it had planned to make the World Tower shop the largest duty free store in Asia – never mind South Korea.

    Whether internal in-fighting at the top of Lotte has played any role in it losing its Tower license, or merely a view that it is becoming too big (or both) is unknown at present, although TRBusiness hopes to canvass the views of individuals who are very close to this process for further in-depth analysis within the next 24 hours.

    For its part, WalkerHill Duty Free management will also doubtless be very disappointed that it has lost its licence after nearly three decades of trading, with this store particularly well known for its wide range of high quality watches.

    As reported yesterday, Korea Customs initially received 10 bids for the three downtown concessions on offer in Seoul, while the single Busan downtown tender attracted just two bids.

  • 20 Lotte affiliates meet IPO requirements

    20 Lotte affiliates meet IPO requirements

    The conglomerate has pledged to simplify its governance structure and boost its managerial transparency through a set of measures, including initial public offerings (IPOs), after a bitter family feud over control of the retail conglomerate. Currently, Lotte has eight publicly traded affiliates here, with the key units being linked through unlisted Japanese units.

    According to the data compiled by the Korea Exchange, a total of 20 out of 73 Lotte subsidiaries are eligible for IPOs in the country. The candidates include Hotel Lotte, Lotte Card Co., Lotteria and Lotte Capital.

    Under local regulations, a firm seeking to be listed is required to have a capital base of more than 30 billion won (US$26.5 million), average annual sales exceeding 70 billion won for the previous three consecutive years and a return on equity surpassing 5 percent.

    After the squabble over control of the sprawling business empire, which has a cobweb-like governance structure, Lotte chairman Shin Dong-bin in August expressed his desire to push for the listing of Hotel Lotte, a key affiliate, as part of its reform plan.

    The listing on the local stock market requires stricter regulatory filings while allowing it to seek capital increases, issue more non-voting stocks and reap other benefits that translate into greater business opportunities.

    “As a South Korean company, we will have more of our affiliates go public with a strong will to contribute to the Korean economy,” a Lotte official said.

     

  • Lotte Signs Five-year Exclusive O2O Deal In China

    Lotte Signs Five-year Exclusive O2O Deal In China

    Chinese B2C e-commerce website JD.com and South Korean retail giant Lotte.com have signed a strategic cooperation agreement and an exclusive agreement under which JD.com will become the sole strategic partner of Lotte.com in the Chinese mainland for five years.

    JD said that with the strategic cooperation agreement, Lotte Group’s products and services will enter the Chinese market via JD’s global shopping platform. In the future, the two parties will implement cooperation in tourism and service O2O.

    Global strategy is currently an important reason for Chinese e-commerce providers to team with international retailers. Lotte.com is responsible for the online sales of products and services of all subsidiaries of Lotte Group. Lotte.com will integrate Lotte Group’s branches to establish a “Lotte hall” on JD.com, covering Lotte Department Store, Lotte Mart, Hi-Mart, Lotte Duty Free, Lotte Hotel, and Lotte World.

    The “Lotte hall” will not only sell infant products, cosmetics, and fashion products, but also will offer household products and home appliances. Over the next three years, the two parties aim to expand their cooperation range to about 200,000 kinds of products.

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  • Pop up stores change Korea retail face

    Pop up stores change Korea retail face

    More and more specialised retailers or service providers – ranging from barbershops to paint stores – are making appearances inside Korean department stores.

    These special shops are appearing as pop up stores rather than taking up permanent residence. The phenomenon is the result of retailers choosing pop up stores to publicise their brands, which allows them to avoid sales pressure that comes with leasing permanent space in a department store.

    Lotte Department store has opened a Club Monaco Men’s shop. The barbershop Herr’ has been added to the already existing select shop, offering consulting services related to style and haircuts. The barbershop is also offering customers a traditional English wet shaving. It is the first time for a barbershop to enter an apparel store, which makes the ‘special store’ extra special.

    A pop up store called Men’s AGIT gathered many popular hobby goods such as cameras, camera accessories, drones, plastic figures and RC cars in one spot.

    Another notable pop up store is the ‘Home and Tones’ shop at Hyundai Department Store. Since the number of people redecorating their homes by themselves has increased, Samhwa Paint has been managing a pop up store since September 7. Eco friendly paints, as well as paint that turns into a blackboard when applied are exhibited, and paint that can be mixed on-site through toning machines, are drawing the attention of consumers.

    The ’99 Avant’ pop up store sells the creations of young artist Han Seung-woo. Hyundai department store officials say that the pop up store is gaining positive reaction from customers as they can communicate with the artist in person.

    Shinsegae department store made space on its sixth floor just for pop up stores. Many brands including whiskey brand Balvenie’s ‘craft lounge’, shoe care brand ‘Resh’, and BMW’s Mini cars and bicycles have all opened pop up stores at the location.

    Shinsegae officials mentioned that the sales of pop up stores are threatening sales at official stores.

    “Now, already existing brands are also using popup stores as a method to introduce their new products. Department stores are also benefitting from the pop up stores because various brands can be presented so customers have no time to be bored.”

  • Lotte.com launches China app

    Lotte.com launches China app

    South Korea’s Lotte.com has launched a Chinese mobile shopping mall service known as ‘china.lotte.com’ to meet demands of consumers chasing the ‘Korean Wave’.

    Growing numbers of Chinese are buying goods online from offshore sources – a practice referred to as ‘Haitao’ locally. And Korean goods – especially in the beauty and fashion categories – are enormously popular among the younger demographic.

    China.lotte.com, launched Wednesday (August 19) is’ exclusively focused on customers from Greater China. After global.lotte.com launched in February last year, Lotte spent a whole year preparing for the Chinese version of the site.

    More than 10,000 lines have been selected for China.lotte.com and another 5000 local Chinese lines are being added progressively.

    Chinese customers can shop using regular payment services including Alipay, UnionPay, Tenpay, PayPal and local Chinese credit cards.

    Lotte.com’s global business team manager Hwang Hyun Jung says China.lotte.com considered even minute details to meet the expectations of the rapidly growing Chinese overseas shopping market.

    “Through meticulous translations and user tests via Chinese supporters, this service is mainly composed of local-friendly user interface,” she said.

    Lotte.com has attracted “hundreds of thousands followers and supporters” via Weibo during the last six months in preparation for the launch.

    The company is also promising to work with Korean small businesses to help expose their brands and products to Chinese consumers via the portal.

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  • Lotte to open Bangkok duty free store

    Lotte to open Bangkok duty free store

    South Korean conglomerate Lotte is to open a “major downtown duty free store” in Bangkok. Lotte has confirmed the new store will open in early 2016. The location has not yet been revealed.

    Retail News broke news of the plan last week, reporting the store would be a joint venture between Lotte Group and Lotte Holdings of Japan, with the Korean partner holding 80 per cent.

    “The opening in the Thai capital is part of an ambitious international strategy designed to bolster Lotte’s strong sector leadership in South Korea, the world’s biggest duty free market,”

    Lotte, the world’s third largest duty free retailer, is involved in a strident expansion program which has seen it open in Japan’s Kansai International Airport, at Guam, Singapore and Indonesia in recent years. It is targeting the fast growing legions of newly cashed up Asian consumers travelling regionally and spending increasing amounts on duty free goods at airports, and downtown department stores.

    Lotte is also planning to open its first downtown duty free store in Japan – located in the upmarket Ginza shopping district.

  • Five trends in Vietnam retailing

    Five trends in Vietnam retailing

    Vietnam’s retail market is set to grow by 8.4 per cent annually until 2020, making it one of the fastest-growing markets in south-east Asia.

    Against a backdrop of increased disposable income, rapid urbanisation and an appetite for change among younger shoppers, we take a look at five trends defining the marketplace for pan-Asian retailers right now.

    Confident investment

    January 2015 marked the first time non-domestic retailers could take full ownership of commercial property in Vietnam, following commitments made to the World Trade Organisation. Now, new trade agreements with Japan, Korea and the countries that make up the Association of South-East Asian Nations (ASEAN) look set to support further growth for international retailers in Vietnam:

    Tailoring the best of international retail

    Domestic retailers may have the advantage when it comes to local shopper knowledge but
    international retailers are drawing on their own strengths to help them compete.

    Dairy Farm, FamilyMart and Aeon have brought their expertise in loyalty schemes, private label and innovative marketing to their stores in the region.

    Other points of difference include appealing to busy office workers with a fast food to go counter (seen at Family Mart and B Mart) and bringing an international flavour to the in-store hot food offer (Aeon Mall).

    Alternative store concepts

    Many retailers have established themselves in Vietnam with a hypermarket presence in one of the major retail hotspots like Hanoi or Ho Chi Minh City.

    Lotte and hypermarket chain Aeon are appealing to families and experimental shoppers with department store formats that act as wider shopping and entertainment destinations. Aeon is also making its mark with a loyalty scheme that includes tailored offers for mums – such as birthday treats or discounts on baby care.

    In the convenience channel, Guardian is the first combined-format health, beauty and drugstore in Vietnam. The store is making waves with its clean layout, colourful signage, bold promotional activity and sales assistants offering a superior level of service.

    Product innovation for a changing market

    A new concept in Vietnam, private label is appealing to young, experimental shoppers thanks to its lower prices and alternative products.

    Aeon has introduced its TopValu private label range, which taps into the popularity of Japanese culture by offering authentic Japanese ingredients and home cooking kits. The retailer is now working with local suppliers to explore domestic production.

    An increasingly affluent middle class is also supporting demand for exclusive and imported novelties. Dairy Farm is well-known for attracting these shoppers with its packaged food, household, health and beauty ranges.

    Expanding to national coverage

    A priority for most retailers is to create a nationwide presence. Lotte has built a network of ten hypermarkets spanning six big cities across Vietnam, making them the first pan-Asian retailer to achieve such a spread of coverage. Meanwhile, Ministop (Aeon), Guardian (Dairy Farm) and Shop&Go are pushing their convenience format in retail hotspots.

    Major retailers are seeing good growth from their franchise models, making partnerships, mergers and acquisitions hot topics.

    Aeon has partnered with local retailers Citimart in the south of the country and Fivimart in the north. The domestic chains are helping Aeon speed up its expansion plans by using their existing store networks. In return, their own customers are benefitting from the retail giant’s private label ranges and investment in infrastructure.

  • Lotte China closes stores

    Lotte China closes stores

    South Korea’s Lotte is finding the Chinese retail market tough to crack.

    Lotte Mart, the supermarket arm of South Korea’s Lotte Group, is to close four underperforming supermarkets in East China’s Shandong Province, according to the China Business Journal newspaper.

    Lotte is said to be losing market share in Mainland China unable to differentiate itself in the middle ground between local retail chains and the growing power of online retailers such as Alibaba and JD.com.

    Two of the stores to close are located in Qingdao, a second tier city located on the coast. A third is located in Weihai and the fourth in Weifang, an industrial city in central Shandong.

    Another source observed Lotte Mart did not provide a compelling food offer with its supermarkets.

    “For young people, Lotte Mart is not a good choice if they want to eat out as well as shop. There are not many fancy restaurants in Lotte Mart compared with other markets,” the customer told The Global Times on Sunday.

    Lotte Mart has 120 stores in China, 116 in Korea, 39 in Indonesia and 10 in Vietnam.

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  • Lotte opens Jeju obligation free retailer

    Lotte opens Jeju obligation free retailer

    Lotte has opened a 6612 sqm Jeju obligation free retailer.

    The brand new retailer, constructed at a price of US$72 million, spans three flooring of the Lotte Metropolis Lodge in Jeju metropolis’s Doryeong-ro district, within the island’s CBD.

    Lotte Obligation Free says it’s almost 3 times the dimensions of the older retailer it replaces.

    Lee Hong Kyun, Lotte Obligation Free’s president, says the corporate plans to develop different leisure and cultural points of interest close by to attract much more vacationer clients to the location “Lotte Obligation Free Jeju retailer, standing on the bottom of its native company, Lotte Obligation Free Jeju Co Ltd, will make a purchasing cluster in Jeju and appeal to overseas vacationers in accordance with the tourism improvement coverage of Jeju,” he stated on the retailer’s opening ceremony.

    The brand new retailer is predominantly concentrating on Mainland Chinese language vacationers and features a cosmetics zone boasting 70 worldwide fragrance and cosmetics manufacturers.

    “Lotte Obligation Free has analysed the preferences of Chinese language vacationers and launched 270 manufacturers, together with international luxurious manufacturers, jewelry, equipment, cosmetics, watches, liquor and tobacco.” the corporate stated in a press assertion.

    “The worldwide luxurious jewelry manufacturers Bvlgari and Tiffany & Co are solely situated in Lotte Obligation Free Jeju retailer.”

  • Lotte Vietnam boosts investment

    Lotte Vietnam boosts investment

    South Korea’s Lotte has acquired a majority share in a Ho Chi Minh City shopping centre, office and apartment complex as it protects its Vietnam beachhead.

    Lotte Vietnam has bought out another Korean business’ 70 per cent stake in Diamond Plaza, a high profile 20-story tower housing a multi-level department store, foodcourt and other retail facilities, along with offices, a medical centre, cinema and apartments.

    It was one of the first modern era shopping developments in the country’s largest city, although its footprint is dwarfed by more recent developments such as Vincom and Union Square, also in the CBD, and Crescent Mall in the Asian-expatriate hub of District 7.

    Lotte already has extensive investments, and reach, in Vietnam, operating Lotte Mart hypermarkets, cinemas, a hotel on the Saigon riverfront and a chain of Lotteria fast food outlets which was well established before US rival McDonald’s debuted in Vietnam in late 2013.

    Diamond Plaza was opened in August 2000, then valued at US$60 million. It was a joint venture between local developer Construction Corporation No.1 and Korean steel company Posec, a subsidiary of steel maker Posco. Lotte has bought out Posec’s interest for an undisclosed amount.

    In another transaction not officially released, Lotte has purchased two Pico Plaza branded shopping centres in Hanoi and Ho Chi Minh City and rebranded them Lotte after converting supermarkets into Lotte Mart hypermarkets.