What: Shinsegae launches an innovative AI-based multilingual service at its flagship store, offering real-time voice and text translation for international shoppers.

Why it is important: This technological advancement signifies a shift in how department stores are adapting to serve an increasingly diverse international customer base, potentially setting a new standard for customer service in the retail industry.

Shinsegae Department Store has introduced an AI-based simultaneous interpretation service at its headquarters in Seoul, supporting an impressive 38 languages. The service, launched on May 20th, provides real-time voice translation and text translation simultaneously. It's installed at the information desk and customer counselling room, allowing foreign customers to select their native language on a tablet PC and receive responses on a transparent LED display. The system is designed to learn frequently used terms, enhancing its ability to communicate effectively with foreign tourists about store services, events, and promotions.

Within three weeks of implementation, over 2,000 foreigners have utilized the service, indicating a strong initial response. The extensive language support, including various forms of Chinese, English, German, Japanese, French, Spanish, Vietnamese, and Malay, makes it the most comprehensive in the industry. Shinsegae plans to expand the service to other locations, particularly targeting areas popular with foreign shoppers.

This initiative comes as the number of foreign tourists and their spending in South Korean department stores are on the rise. From January to September this year, Shinsegae Department Store's foreign customer sales increased by 148% year-on-year, reflecting the growing importance of international shoppers in the Korean retail landscape.

IADS Notes: Shinsegae's AI-based interpretation service aligns with a broader trend of AI adoption in South Korean retail. In April 2024, Lotte Department Store launched a similar service supporting 13 languages . Lotte further expanded its AI use into internal operations in July 2024, implementing chatbots and AI-driven security systems . These innovations are part of a larger transformation in Japanese and Korean department stores, as they adapt to changing consumer behaviors and economic challenges. Retailers are focusing on creating experiential offerings and leveraging technology to attract younger generations and remain competitive in an increasingly digital retail environment .

Shinsegae deploys real-time AI-powered translation for foreign tourists