[Report] 5,000 Chinese Tourists Flood Duty-Free Shops... Cosmetics, Sneakers, and Hats Swept Clean

Iyungtang Employees 5,000 Incentive Tour
Largest Group Visit Since THAAD

Around 6 p.m. on the 10th, I visited the Shilla I'Park Duty Free Shop in Yongsan, Seoul. Chinese tourists are lining up to board the shuttle bus.

[Asia Economy reporters Minyoung Cha and Seungjin Lee] "I heard that group tourists will be coming for three days from yesterday until tomorrow. Since the end of last year, the number of tourists suddenly increased, and we ran out of sneakers and sweatshirts, so we could have sold more but couldn't." A Chinese employee in her 20s whom we met around 6 p.m. on the 10th at the 'Fila' store in Shilla I'Park Duty Free in Yongsan, Seoul, repeatedly expressed her regret. In the case of ugly sneakers, popular sizes often sell out early, so they are marked and guided on the product surface. At the nearby street casual brand 'MLB' store, more than 20 young Chinese tourists lined up to purchase hats and T-shirts with large logos.

Since the 2017 Chinese THAAD (Terminal High Altitude Area Defense) retaliation, the largest-ever group of about 5,000 employees from Eryungtang recently visited Korea. Eryungtang, a health food and supplement manufacturer based in Shenyang, China, visited for a 5-night, 6-day incentive tour. Over 100 group tour buses carrying these employees visited major downtown duty-free shops over three days from the 9th to the 11th. The four locations included Lotte Duty Free Myeongdong Main Store and World Tower Branch, Shilla I'Park Duty Free, and Shinsegae Duty Free Myeongdong Main Store.

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Chinese tourists visiting the Lotte Duty Free Myeongdong Main Store in Euljiro, Seoul, are holding shopping bags full in both hands.

At the group tourist entrance of Shilla I'Park Duty Free, an orange banner welcoming the visit of Eryungtang employees was prominently displayed. The LED advertising board on the wall showed Eryungtang advertisements. Product display stands were also set up. Kim Cheonghwan, co-CEO of HDC Shilla Duty Free, which operates Shilla I'Park Duty Free, personally handed a bouquet to the first Eryungtang employee who arrived at the duty-free shop as a gesture of welcome.

The strong performance of domestic leading cosmetics brands was also noticeable. An employee at the luxury cosmetics brand 'Whoo' said, "Most products are popular among group tourists, so there is no particular preference for specific products," adding, "Many from Eryungtang purchased gift basic skincare sets." Right next door, the 'Sulwhasoo' store was also bustling with continuously arriving Chinese tourists, keeping the staff busy.

Scenery inside Shinsegae Duty Free Myeongdong Main Store

At Lotte Duty Free Myeongdong Main Store, where visitor numbers have sharply increased since December last year, 10-20% more tourists than usual crowded the store, creating a literal sea of people. Located in Euljiro, Seoul, the Myeongdong Main Store recorded sales of 4 trillion won in 2018, making it the world's number one single duty-free store by sales. On this day as well, luxury overseas cosmetics brand stores popular among Chinese such as 'Chanel,' 'Dior,' 'Givenchy,' and 'Armani' had individual sales staff attending to dozens of customers each. The color makeup demonstration area was packed with female tourists eager to learn Korean-style makeup techniques. Some filmed videos on their smartphones, proudly calling themselves 'beauty role models.' The handbag brand 'MCM,' which is in high demand among Chinese, also had a waiting line of about 30 people. Many also sought out Korean brands such as 'Gentle Monster' and 'MLB.'

Interior view of Shinsegae Duty Free Myeongdong Main Store

Since the deterioration of Korea-China relations due to the THAAD issue, group Chinese tourists had stopped coming, but they are gradually recovering through incentive tours. Recently, about 3,000 employees from Shanghai Weina Cosmetics, a famous Chinese cosmetics manufacturer and seller, visited Korea for incentive tourism and enjoyed duty-free shopping. As of the end of November last year, the number of Chinese incentive tourists recorded 99,857, an increase of about 200% compared to the same period the previous year. The number of Chinese tourists visiting Korea also increased by 26% to about 6 million last year compared to the previous year.

Since December last year, not only Chinese daigou (personal shoppers) but also individual tourists have been increasing, and with the largest-ever group tourist visits, expectations in the duty-free industry have grown. An industry insider said, "Daigou usually travel by Carnival vans, while corporate tourists use group tour buses and can be distinguished by the suitcases they carry," adding, "We hope that this visit by corporate customers will help restore relations with China a bit more."

This content was produced with the assistance of AI translation services.