[Report] "Let's Help Struggling SMEs"... 10,000-Won Range Hiking Clothes and 2,000-Won Range Dishes Draw Huge Crowds

On the 20th, people are selecting clothes at the 'Win-Win Sharing Bazaar' held on the 9th floor of the Lotte Department Store Main Branch in Sogong-dong, Seoul.

[Asia Economy Reporter Lim Hye-seon] "This is the event with the most customers in the past six months."

On the afternoon of the 20th, an employee working at the event hall on the 9th floor of the Lotte Department Store main branch in Sogong-dong, Seoul, said, "There are more customers than expected, making it difficult to handle." Department stores, struggling due to the impact of the novel coronavirus (COVID-19), have found vitality after a long time. Lotte Department Store held the 'Small and Medium Partner Companies Win-Win Sharing Expo' for five days starting from this day at six stores including the main branch and Nowon branch. According to Lotte Department Store, 10,000 customers visited the main branch and 30,000 customers visited the six stores in total on the day of the expo. Sales amounted to 200 million KRW at the main branch and 400 million KRW overall, which is a 50% increase compared to the sales during the same period last year. The department store reduced its margin on products sold at the expo to half of the usual rate, and brands sold products at competitive prices. Thanks to this, customers opened their wallets.

Around 2 p.m. that day, the event hall was packed with people wanting to purchase products. The majority were middle-aged customers in their 50s and 60s. As a season-off concept, madam brands such as Luciano Choi, BCBG, Burdaman, MC, Flamingo, Anzik, and Creson sold summer new products for the first time at half price. In front of the BCBG booth, about 20 customers competed to buy their favorite clothes first, asking, "Is this blouse size all that you have here?"

Outdoor brands also offered large discounts. T-shirts were priced between 10,000 and 25,000 KRW, windbreaker jumpers at 39,000 KRW, and trekking shoes at 59,000 KRW. Kim Sung-ja (58), who purchased a 10,000 KRW T-shirt from the outdoor brand Eider, said, "I visited the department store for the first time in a while because they were selling high-quality products at low prices," adding, "There were more clothes I liked than I expected, so I bought some for my family as well."

There were 63 partner companies and 124 brands participating in the expo. In addition to clothing products, various items such as sunglasses, bedding, tableware, and sports goods were discounted up to 80%. The most crowded booths were those selling products at a uniform price of 10,000 KRW. Eider's zip-up T-shirts and pants, Olzen's T-shirts, Ungaro's men's shirts, and Crocs' kids' shoes sold out quickly. Especially, Eider, Nepa, and K2 sold limited daily quantities (50-100 items) at more than twice the speed of other products.

April Home's quilted blankets and Ido kitchenware were also popular. In particular, Ido kitchenware was inexpensive, attracting young housewives in their 30s and 40s who bought sets of four. Ido rice and soup bowls were sold at 2,500 KRW and 7,500 KRW respectively. Mugs and plates were also discounted by 50%. Accessories brands such as J.ESTINA, Stonehenge, and Gallery O'Clock offered discounts ranging from 20% to 50%.

Brand employees actively participated in sales as well. The department store advanced the payment for products sold at the expo to June 10, 20 days earlier than usual, and provided up to 400 million KRW in win-win growth funds to partner companies. A women's clothing brand employee encouraged sales staff by saying, "If you immediately inform us about well-selling products, we can bring in more stock," showing enthusiasm for sales.

Choi Ji-hoon, CEO of Ungaro, said, "The win-win sharing expo allowed us to clear existing inventory and increase sales," adding, "Receiving the win-win growth fund gave managers working at the department store pride and confidence in being Lotte's partner company." Ryu Kwang-yeol, CEO of Dongjin Bedding, also said, "It was an opportunity to clear remaining spring season inventory," and "The department store's margin reduction helped us offer products to customers at reasonable prices, which contributed to sales."

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