What: Korean retail giant Shinsegae faces public criticism over English rebranding initiative while pursuing ambitious luxury market positioning strategy.

Why it is important: The public response to Shinsegae's rebranding reveals growing tensions between retail modernization strategies and the preservation of cultural identity in Asian markets.

Shinsegae Department Store's decision to rename its main branch buildings to "The Reserve," "The Estate," and "The Heritage" has sparked controversy among Korean consumers. The rebranding is part of Jung Yu-kyung's "10 trillion won project for 2030," aimed at enhancing the company's luxury appeal and maximizing VIP customer engagement. While the strategy includes substantial operational changes, such as establishing Trinity Lounges for top-performing customers and revamping merchandise composition, the English naming has faced criticism for being confusing and potentially alienating. Critics argue that replacing the historically significant Korean names, particularly for the main building which opened in 1930, risks diluting cultural heritage. The controversy extends beyond Shinsegae, highlighting a broader industry trend of excessive English usage in Korean retail, exemplified by similar practices at Hyundai Seoul and Hanwha Galleria.

IADS Notes: Shinsegae's English rebranding initiative reflects its broader transformation strategy under Chung Yoo-kyung's leadership. The November 2024 organizational restructuring laid the groundwork for this shift, while June 2024's launch of "House of Shinsegae" demonstrated the company's commitment to luxury repositioning. The strategy extends beyond naming, with October 2024's implementation of AI-powered translation services showing how the company is adapting to serve international customers. This transformation's success is evident in February 2024's strong department store performance, contrasting sharply with Emart's struggles. The January 2024 partnership with Net-a-Porter further reinforces Shinsegae's luxury aspirations. While the English rebranding has faced criticism for potentially diluting cultural identity, it aligns with Shinsegae's broader strategy to position itself as a global luxury retailer while maintaining operational excellence in its core Korean market.

Shinsegae rebrands main branch in Sogong-dong with confusing English names