Hyundai Department Store Accelerates All-Out Expansion of New Business

[Asia Economy Reporter Lim Hye-seon] Hyundai Department Store Group is accelerating new businesses to prepare for the future. On the 24th, Hyundai Department Store announced that it will open the 'Hyundai Premium Outlet Daejeon Branch (tentative name)' and the 'Hyundai Premium Outlet Namyangju Branch (tentative name)' in June and November 2020, respectively. The 'Hyundai Premium Outlet Daejeon Branch,' opening in Yongsan-dong, Yuseong-gu, Daejeon, will have a sales area of 53,586㎡ (16,210 pyeong), making it the largest in the central region. The 'Hyundai Premium Outlet Namyangju Branch' will be the largest premium outlet operated by Hyundai Department Store, with a sales area of 62,150㎡ (18,800 pyeong), and is scheduled to open in Dasan-dong, Namyangju.

They are also stepping up efforts in the duty-free business. On the 20th of last month, they opened their second downtown duty-free store at Doota Mall in Dongdaemun, Seoul, and were selected as the preferred negotiator for the DF7 zone (fashion and others) in the bidding for the duty-free store at Incheon Airport Terminal 1. Hyundai Department Store Duty Free explained, "We plan to stabilize the duty-free business by realizing economies of scale."

Food company Hyundai Green Food is starting full-scale operations of its 'Smart Food Center.' Through the operation of the 'Smart Food Center,' Hyundai Green Food plans to actively engage in B2C (business-to-consumer) and B2B (business-to-business) food manufacturing businesses. First, to target the B2C market, they will develop and produce high value-added products such as premium home meal replacements (HMR). To this end, 70% of the items (over 1,000 types) producible at the 'Smart Food Center' will be filled with B2C products such as fully cooked HMR and semi-cooked meal kits.

Fashion specialist Hansome is expanding its concept store 'The Hansome House.' 'The Hansome House' is Hansome's new offline distribution channel, introduced mainly in metropolitan commercial areas as a concept store. Hansome plans to open the 'Jeju Branch (3rd store)' in Ora 2-dong, Jeju City, Jeju Special Self-Governing Province on January 3 next year and expand to 20 stores by 2025.

Hyundai L&C and Hyundai Livart plan to accelerate global business expansion this year. Hyundai L&C intends to expand exports of windows, wallpaper, and flooring by utilizing the North American distribution network established through its high value-added product, engineered stone Kansstone.

Hyundai Livart plans to expand its overseas large-scale construction project infrastructure business in addition to existing furniture exports. The core strategy is to expand from the Middle East region to Asian regions such as Mongolia and Laos. Through this, they aim to increase global business sales by more than 50% this year. Hyundai Department Store Group aims to expand the global business sales scale of the living and interior sector to 500 billion KRW this year and grow it to 800 billion KRW by 2025.

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