S. Korean retailers join extravaganza
SEOUL: South Korean companies, after all but giving up on marketing in China during a diplomatic spat this year, are rolling out major promotions for tomorrow’s Singles’ Day shopping extravaganza, hoping Chinese consumers — and their big bucks — will return.
South Korean businesses from cosmetics firms to casinos and duty-free stores were hit hard after China unofficially banned group tours to South Korea in March, upset with Seoul over its decision to install a United States anti-missile system that Beijing believes threatens its security.
But last week’s agreement by Seoul and Beijing to move past the dispute has boosted hopes group tours may be allowed in the near future, spurring the first big marketing push in nearly a year by South Korean firms.
This year, South Korean duty free operator Hanwha Galleria is offering 110,000 won (RM423) for 111 members of its Chinese site that click a banner starting 11am tomorrow, while Doota Duty Free offered 111,111 won towards purchases for 1,111 people every day starting 11.11am until November 11 at its Chinese online mall.
Asiana Airlines is offering discounted tickets from China to South Korea and other destinations on Alibaba’s Alitrip travel agency website on November 1115, as well as free airport lounge passes for passengers transiting at Seoul’s Incheon Airport.
Lotte Duty Free is also offering cash towards purchases for people who write their Singles’ Day wish list and get replies on its website.
South Korea’s duty free industry, the world’s largest with 12.3 trillion won in sales last year, was hardest hit as Chinese group tourists had contributed around 50 to 60 per cent of their revenue before March.
Lotte reported its first operating loss in 14 years in the AprilJune quarter, while the Shilla Duty Free’s operating profit in the first half of this year fell more than 40 per cent.
Duty free operators know Singles’ Day alone won’t be a panacea.
China online sales are only a small proportion of total revenue, but they hope it will set the stage for a strong recovery once the travel ban is lifted. Reuters