Shinsegae Department Store Fruit Subscribers Up 200% in 10 Months... "Expanding to Main Store"
Industry's First 'Fruit Subscription' Sees 200% Customer Growth in 10 Months
Expansion from Gangnam Branch to Main Store... Increasing VIP Customers Eligible for Subscription
Fresh Food Discount Coupons Included for Seafood, Meat, Grains "Maximizing Offline Advantages"
[Asia Economy Reporter Yuri Kim] Shinsegae Department Store announced on the 25th that it will expand its fruit subscription service locations from the Gangnam branch to the main branch.
Shinsegae Department Store stated, "The fruit subscription service, which was introduced exclusively to VIP customers at the Gangnam branch in May last year, recorded a 200% increase in applicants within 10 months of its launch," adding, "It has received positive responses from customers." The subscription renewal rate was also high. As of this month, 80% of customers using the regular fruit subscription service were existing customers.
Shinsegae Department Store's regular fruit subscription is a service where seasonal fruits, directly selected by Shinsegae buyers, are delivered weekly. For a monthly subscription fee of 220,000 KRW, customers can receive seasonal fruits worth approximately 260,000 KRW at their doorstep every week. Along with the fruits, the package includes ▲tips on selecting the fruit ▲storage methods ▲ways to enjoy the fruit deliciously ▲and a fruit description booklet written by the buyer to enhance customer satisfaction.
The eligibility for the subscription service has also been expanded. Previously limited to the first 30 applicants per month, from this month, any customer with VIP Gold status or higher can apply. Starting next month, the fruit subscription service will be expanded to the main branch as well, increasing the target customer base to capture demand in the subscription economy market. The fruit subscription service can be applied for at the VIP lounge or the produce section of the food hall.
Benefits for subscription service users have also been strengthened. From this month, along with seasonal fruits, discount coupons for fresh foods recommended by Shinsegae Department Store’s meat and seafood buyers will be provided, enhancing the benefits of offline shopping. For example, customers who receive fruits such as Damyang Jukhyang strawberries, Jeju Bullocho tangerines, and cherry tomatoes through the subscription service will also receive a 10% discount coupon for Hanwoo roast set and a 20% discount coupon for spring dried yellow corvina set.
With the enhancement of fresh food discount benefits, related purchases by VIP customers have also increased. VIP customers at Shinsegae Department Store’s Gangnam branch purchased 17% more fresh food items in March compared to the previous year.
Meanwhile, Shinsegae Department Store introduced the industry's first bread subscription service in January last year. For 50,000 KRW per month, customers can pick up one bread daily directly from the store. Since January this year, the category has been expanded with the industry's first premium rice subscription service. The department store stated, "The bread subscription service, after one year of operation, has seen a 60% increase in users compared to the first month, and despite the premium rice subscription being offered exclusively to Gangnam branch VIPs, inquiries continue to pour in."
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Choi Wonjun, head of food at Shinsegae Department Store, said, "As customer interest in subscription services grows, we have expanded and launched the premium fruit regular subscription service," adding, "We will capture demand with differentiated services reflecting changing consumption trends and provide customers with a special experience."
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