Peng Liyuan’s Effect
Lotte FITIN Dongdaemun branch, which used to be quiet when it first opened in May last year, is now full of tourists from China and Japan. This is a very radical change. Dongdaemun is becoming a fashion spot all over again.
In fact, sales of Lotte FITIN Dongdaemun branch during June and July this year increased more than 20 percent compared to the previous year. Sales to foreigners radically increased by over 200 percent. When Lotte FITIN Dongdaemun branch first opened, foreign sales accounted for 10 percent of the total, but are now more than 35 percent at the end of July. Foreign tourists are the revival drivers for the Dongdaemun business area. In particular, thanks to the surprise visit of Peng Liyuan, the wife of President Xi Jinping of China on July 3, sales of the whole sixth floor rose by over 150 percent compared to the same month last year.
The main reason for this drastic change is Dongdaemun Design Plaza (DDP), a landmark of Dongdaemun, which opened last March. As DDP becomes a must-see spot in Korea for foreign tourists, the floating population around this area increased, and sales of adjacent shopping malls are rising as well. A travel agency employee said, “Although Myung-dong is still the number one fashion shopping spot for Chinese group tourists, there is now another option after DDP opened. The second generation of Dongdaemun business arose after the first generation, and main shopping spots are slowly moving. Lotte FITIN near DDP also has increasing sales.”
In case of Lotte FITIN Dongdaemun branch, the number of average visitors per day for four months starting from March 21 is 15,000 persons, a 25 percent increase from four months prior, before DDP opened. Average daily sales jumped by 15 percent as well. A Lotte FITIN employee said, “Foreign tourists prevail on weekdays, and family visitors touring around Dongdaemun have increased greatly on weekends.”
On July 23, a Fashion Design Cluster, which supported programs for residing stores, was opened in JABA11, a wholesale clothing shopping mall in Dongdaemun. Its main role is to provide consultation and support to fashion design companies and start-up store owners. It also connects Chinese buyers and small distribution companies for overseas expansion and exports. It will also host model runways, fashion fairs, and mini fashion shows, together with model agency NFM.