Lotte Department Store Yeongdeungpo Branch Breaks Department Store Stereotypes... Cosmetics Hall Renewed and Reopened on 3rd Floor

Lotte Department Store Yeongdeungpo Branch exterior view.

[Asia Economy Reporter Seungjin Lee] Lotte Department Store Yeongdeungpo Branch will newly open its cosmetics hall on the 18th.

Through a renewal, Lotte Department Store Yeongdeungpo Branch is opening the entire cosmetics store on the 3rd floor for the first time in Lotte Department Store history. Until now, cosmetics stores were generally located on the 1st floor, the face of the department store. This is because 70% of the department store’s main customers are women.

The reason Yeongdeungpo Branch is boldly relocating the cosmetics store to another floor is a strategy to secure future customers of the department store, the MZ generation (born early 1980s to early 2000s). The 3rd floor is directly connected to the subway station, and by placing cosmetics, the face of the department store, at the main entrance where customers enter, it is expected to attract young customers from the MZ generation as well.

With the new opening of the cosmetics hall, Yeongdeungpo Branch implemented ‘specialized cosmetic content’ as a point preferred by the MZ generation. First, following Lotte Department Store Cheongnyangni Branch, the second 'Amore Special Zone' will open. This is a new type of experiential beauty store that actively reflects the non-face-to-face consumption trend and the needs of the MZ generation.

In the 'Amore Zone', customers can freely test products non-face-to-face. The 'Play美Studio' allows customers to freely experience various brands operated by AmorePacific, and detailed product explanations can be viewed using QR codes without asking staff.

The existing Cheongnyangni Amore experiential store saw a 3% increase in the proportion of customers in their 20s and a 5% sales growth (in July) after opening. Also, by strengthening experiential elements regardless of brand, the average purchase amount per customer in their 20s increased by more than 50%, reaching a level close to the purchasing power of customers in their 30s and 40s. The purchasing pattern showed cross-purchasing of two or more brands including luxury perfumes and premium cosmetics, and the usual purchase frequency (3 months) also shortened.

Within the Amore Zone, Hera offers makeup one-point lesson classes that can be reserved through the linked 'Beauty Angel App' and will be held regularly. Also, customers can experience AR augmented reality makeup services that allow them to check if the makeup suits them without directly testing it on their face.

For the millennial generation, who have high interest in beauty products due to active creators on social networking services (SNS), a VIP deep counseling space was also created inside Sulwhasoo. In ‘Deep Counseling’, various products such as customized makeup and skincare are recommended according to the customer’s skin type.

Additionally, luxury perfumes, which are highly favored by the MZ generation, are prominently featured. Dior is specializing zones for 'J’adore' and 'Sauvage' (men’s perfume) for the first time in Korea, and Chanel is implementing a high-end perfume ‘Les Eaux de Chanel’ zone. The niche perfume ‘Aerin’ is also introduced as a separate zone by Est?e Lauder.

Lastly, luxury boutique cosmetics popular among the MZ generation such as ‘Gucci Beauty’, ‘Givenchy Beauty’, ‘Tiffany Perfume’, and ‘Burberry Perfume’ will newly open this time, presenting a more sophisticated and luxurious store along with existing cosmetic brands.

Meanwhile, Yeongdeungpo Branch is renewing the entire department store this year targeting the MZ generation. On the 5th, it renewed and opened the entire 2nd floor, 3,636㎡ (1,100 pyeong) in size, implementing a store concept called ‘MZ Generation’s Wardrobe’ focusing on the top-ranked fashion clothing apps mainly used by the younger generation.

Yeongdeungpo Branch plans to open the sneaker resale platform targeting the MZ generation, ‘Out of Stock’, the limited edition football replica uniform specialty store ‘Over the Pitch’, and the new concept emotional convenience store ‘Going Mary’ on the 1st floor on December 1st.

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