What: Local department stores in Korea are pursuing different brand marketing to acquire loyal customers amid decreasing sales due to the Covid-19 pandemic.

Why it is important: It is now imperative for retailers to offer new experiences to customers that will differentiate them from e-commerce firms.

Hyundai Department Store is trying to kill two birds with one stone through its "Eco-friendly VIP system." This is a program giving VIP benefits to customers who actively participate in environmentally friendly activities.  Customers who participate in five out of eight such activities will be given VIP benefits such as three-hour free parking and a 5 percent discount off any item purchased at a Hyundai Department Stores.

They will also be invited to various cultural and fashion events, and can get a maximum eight free cups of coffee before the program ends in December. Hyundai hopes to bring customers back to their shopping mall, particularly young customers who are interested in climate and environmental issues.

Shinsegae Department Store took a different path, partially turning its shopping venues into an art gallery. Starting August, they exhibited 250 works including paintings, photographs and sculptures at luxury stores and VIP lounges. It first started with 120 works but received good feedback and so added 130 more. At luxury boutiques, the art created synergy to boost sales of high-end items by 37% between August and September compared to 2019. Also, customers purchased 28 pieces of art from the boutique while shopping.

Galleria Department Store is hosting an Italian fashion event in collaboration with the Italian Trade Agency for three weeks. At its Apgujeong branch, Galleria will introduce Italian classic fashion brands such as Marni and Cesare Attolini at its select menswear shop g.street 494 homme. The retailer will offer high-end Italian fashion and lifestyle programs for VIP customers at its premium grocery store Gourmet 494 in Hannam. Galleria in Gwanggyo will run a pop-up store adopting the lifestyle theme "Italian Design Parade."

Department stores seek marketing to secure loyal customers