Lotte Duty Free's Non-Stop Tourist Flights 'Popular'... Perfume and Cosmetics Account for 45% of Total Sales

[Asia Economy Reporter Lim Chunhan] Lotte Duty Free announced that non-landing sightseeing flights have become a trend in duty-free shopping in the first half of the year, gaining great popularity as overseas travel became difficult due to COVID-19.

According to Lotte Duty Free on the 18th, the average spending per customer who used Lotte Duty Free after taking a non-landing sightseeing flight reached 1.2 million KRW. Currently, the duty-free allowance per domestic traveler is USD 600 (about 670,000 KRW), with additional duty-free benefits for one carton of cigarettes, 1L of liquor under USD 400, and 60ML of perfume.

In March alone, about 1,600 customers who took non-landing sightseeing flights used Lotte Duty Free, approximately three times more than in December last year when the flights first started. Sales increased by about 180% compared to the first month. Looking at the product category composition, 45% of total sales came from cosmetics and perfume, followed by fashion and leather at 29%, watches and jewelry at 12%, and liquor and cigarettes at 5%.

Among sales channels, online accounted for the highest at 60%, followed by downtown stores at 36%. Airport stores were the lowest at 4%. The withdrawal of liquor and cigarette stores from Lotte Duty Free’s Incheon International Airport Terminal 1 in early March was a major factor. Currently, all non-landing sightseeing flights depart from Incheon Airport Terminal 1. By customer age group, the MZ generation, recently emerging as major spenders in the retail sector, accounted for 50%, and female customers made up 56%.

Lotte Duty Free is also collaborating with all seven domestic airlines operating non-landing sightseeing flights, conducting various marketing activities such as airline partnership points and gift giveaways, upgrading membership levels on Lotte Internet Duty Free, and in-flight prize draw events. Additionally, at the end of April, they plan to launch a combined product of accommodation, airline, and duty-free shopping in partnership with Lotte Hotel and Asiana Airlines.

Meanwhile, following the recent announcement by the Ministry of Land, Infrastructure and Transport to allow non-landing sightseeing flights at regional international airports such as Gimpo, Gimhae, and Daegu airports, Lotte Duty Free, which has stores at Gimpo and Gimhae airports, plans to partially open stores according to the non-landing sightseeing flight schedules.

A Lotte Duty Free official said, “Lotte Duty Free plans to continue introducing various events based on the industry’s largest airline network to meet the duty-free shopping demand of domestic customers.”

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