Entire European Boutique... LotteON Strengthens Luxury Overseas Direct Purchase

Overseas Direct Purchase Service of Elbutique Opens on the 30th

[Asia Economy Reporter Cha Min-young] Lotte Group's integrated online mall Lotte ON's luxury lineup is expanding.

Lotte ON announced on the 26th that it will open the 'El Boutique Overseas Direct Purchase Service' on the 30th. It will sell about 20,000 products from 400 brands including Saint Laurent, Off-White, Thom Browne, Balenciaga, and Ferragamo, held by more than 20 boutiques located in Europe, purchasing and shipping directly from the local boutiques. Customers do not need to go through separate personal customs clearance procedures. The product price includes shipping fees and VAT.

The most focused aspect of Lotte ON in launching the El Boutique overseas direct purchase service is the out-of-stock rate. Recently, as luxury overseas direct purchases have steadily increased, the nature of luxury goods handling many varieties in small quantities results in a high rate of unilateral cancellations due to stock issues after payment.

To reduce the out-of-stock rate for luxury overseas direct purchases, Lotte ON partnered with the startup 'Guhada,' which provides IT-based overseas purchasing agency services. Guhada can check the inventory of local European boutiques in real time, minimizing the possibility of out-of-stock occurrences after ordering. Since products are purchased directly without intermediate distribution processes, it also has cost advantages. Additionally, by linking with local boutiques, it can discover various products not yet introduced in Korea and quickly introduce items that young customers would like.

Lotte ON expects that with this collaboration, the El Boutique overseas direct purchase service will complete product orders and delivery within 7 business days. When customers order products, Guhada purchases and ships the products locally. In Korea, the products go through customs clearance, undergo a second inspection before final shipment, and are delivered in the 'El Boutique Delivery Package.'

To commemorate the service opening, Lotte ON will sell all handled products, including Burberry, Saint Laurent, Prada, and Gucci, at a 25% discounted price until the end of the year. Also, during December, two actual purchasers will be selected by lottery to have the opportunity to purchase Dior Oblique high-top sneakers and Saint Laurent sneakers at a 90% discounted price.

Kim Young-jun, head of Lotte e-commerce luxury team, said, “The newly launched 'El Boutique Overseas Direct Purchase Service' by Lotte ON plans to operate with the goal of delivering 100% of the products customers want,” adding, “We expect that trust in purchasing luxury goods on Lotte ON will greatly increase through this service.”

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