Lotte Department Store's 'Product, Marketing, Design' Triangular Squad... "Leading a New Wave"

Strengthening Three Pillars: Product, Marketing, and Design
Core of Transformation to 'Lotte Leading Trends' with Luxury Enhancement
Massive Recruitment of External Experts and Active Promotion of Young Internal Leaders
New Product Headquarters in Samseong-dong, Gangnam-gu... Rising Internal Expectations

Jung Junho, CEO of Lotte Department Store.

[Asia Economy Reporter Yuri Kim] The "future-oriented Lotte Department Store," led by CEO Junho Jung, has officially set sail. After several months of organizational restructuring following CEO Jung's appointment, the outline has become clear, focusing on the "product, marketing, and design" triad to secure differentiated content and bring a fresh breeze to the market.

According to the distribution industry on the 8th, Lotte Department Store has completed organizational setup this month centered on strengthening the three pillars of product (MD), marketing, and design. The core of this reorganization is to emphasize luxury goods and break away from the previously negative "stagnant" image, transforming into "Lotte leading the trends." To this end, CEO Jung has actively recruited external experts with over 20 years of industry experience in these three areas and has also promoted young leaders internally.

The greatest emphasis is placed on the product headquarters, known as the "flower of the department store." The existing team-level organization was elevated to a division-level organization, and the number of executive appointments increased. In particular, the overseas luxury goods division, which is receiving significant attention, expanded from one division to three, preparing to become a "department store strong in luxury." The Food & Beverage (F&B) sector is also placed directly under the CEO, separating fresh food and F&B to focus on enhancing product competitiveness.

(From the left) Lee Hyo-wan, MD1 Headquarters Director (Executive Director), Jin Seung-hyun, Head of Luxury & Contemporary Designer Division (Deputy General Manager), Jeong Eui-jeong, Head of Visual Division (Deputy General Manager).

Executive Director Hyowan Lee was appointed as the head of MD1 headquarters, which houses the luxury goods category within the product headquarters, and started work this month. Having served as Executive Director at Fendi Korea, Executive Director of Duty-Free Fashion Division at Chanel Korea, and Branch Manager at Givenchy Korea, Executive Director Lee is the first female executive director at Lotte Department Store and will oversee three overseas luxury divisions within MD1, as well as beauty, lifestyle, and H&E (home appliances). Actively communicating through SNS and other channels, Executive Director Lee plans to lead trends among the MZ generation (Millennials + Generation Z) based on diverse experiences in department stores, duty-free shops, outlets, and omnichannel environments.

Among the three overseas luxury divisions within MD1, Seunghyun Jin was recruited as the leader of the Luxury & Contemporary Designer division. Jin, a division head (executive director), is an overseas fashion expert who has worked as a brand manager at Samsung C&T's BEAKER, Comme des Gar?ons, business development at Gucci Korea, and retail manager at Balenciaga Korea. Another overseas luxury division, the Luxury Brands division, welcomed Division Head (executive director) Hyungjoo Jo, who previously served as senior manager at Signite Partners. These leaders will spearhead the strengthening of Lotte Department Store's overseas luxury lineup.

One notable aspect of this change is the bold appointment of highly capable S-level personnel (former team and deputy managers) as division heads. Kim Si-hwan, in his early 40s, leads the beauty, lifestyle, and H&E divisions within MD1, while O Se-eun, Donghyun Lee, and Eunkyung Choi head the kids division within MD2. The strategy is to revitalize the internal atmosphere through young talents suited for horizontal communication and new initiatives. The Lotte Department Store product headquarters will relocate to a new nest in Samseong-dong, Gangnam-gu, Seoul, in May. This change aims to realize CEO Jung's declaration of becoming the "No. 1 store in Gangnam," strengthen ties with luxury brands, cultivate a high-end lifestyle, and improve organizational culture toward a freer atmosphere.

Alongside products, marketing and design are also being strengthened. In the marketing division, Executive Director Seunghee Lee, who handled renewals and marketing at large stores such as Gangnam, and Deputy Executive Director Jihyun Kim, who led marketing at Louis Vuitton Korea, have been recruited. They are entrusted with the important task of enhancing Lotte Department Store's status in the premium consumer goods market and strengthening branding that resonates with customers.

In the design division, Deputy Executive Directors Seungho Ahn and Jeongijeong Jeong, who led interior and VMD at Shinsegae Department Store and Hyundai Department Store, have been recruited. They will play a role in breaking away from the existing Lotte Department Store atmosphere and infusing new sensibilities.

Expectations within the organization are high for these sweeping changes. A Lotte Department Store official said, "There is great anticipation that this time we can truly change, given the noticeably changed atmosphere and an environment suitable for new attempts," adding, "Please watch the new breeze of Lotte Department Store, which will lead trends ahead."

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