"I Came from Instagram" MZ Taking the Department Store Escalator Upward, Heading to the Fashion Hall

Attracting MZ Generation Customers Expands from Famous Restaurants and Cafes to Fashion and Beauty
Shinsegae Gangnam Store 5th Floor 'New Contemporary Hall' Exceeds Sales Target by 30%
14 Domestic Designer Brands and Select Shops Targeting '2535' Entered
The Hyundai Seoul Basement 2nd Floor 'MZ Hall' Accounts for 20% of Sales
Showcasing Over 150 Domestic Fashion Brands... 54.2% of Sales from Customers in Their 20s and 30s

The department store industry’s efforts to attract MZ generation (Millennials + Generation Z) customers are expanding from famous restaurants and cafes to fashion and beauty. What started as introducing new brands that appeal to the tastes of the 2030 generation through pop-up stores has evolved into a full renewal of the fashion section, filling it with "rising designer brands."

According to the distribution industry on the 21st, Shinsegae Department Store’s 'New Contemporary Hall,' which was renewed and launched on the 5th floor of the Gangnam branch last month as a young fashion specialty zone, has exceeded its sales target by over 30% even by the fourth week after opening, receiving a positive response. On weekends, customers crowd the store, causing waiting times for changing rooms.

Shinsegae Department Store segmented the MZ generation and targeted the 25-35-year-old Millennials who enjoy leisure, travel, and shopping in daily life while pursuing trendy styles. Based on online and offline showrooms favored by the 2535 age group, the store was designed to gather designer brands in one place where customers can directly touch and try on products, providing a new experience. Accordingly, on the 5th floor of the Gangnam branch, covering 3,306㎡ (about 1,000 pyeong), 14 domestic designer brands and select shops proven online and offline, such as Recto, W Concept, Shop A Moment, Dunst, and Kinder Salmon, have been introduced. More than half are exclusively presented by Shinsegae, and a pop-up zone that introduces the latest popular designer brands at intervals of 1 to 2 weeks was also created to give customers a reason to visit. A department store official said, "Fashion brand Recto, led by domestic designer Jeong Ji-yeon, and W Concept, which selects about 20 brands out of 7,500 brands online, are very popular."

In recent years, as department store fashion trends have centered on luxury and overseas fashion, the presence of domestic fashion brands within department stores has gradually narrowed. However, recently, emerging designer brands have gained attention mainly from the MZ generation, leading to competition among department stores to attract these brands. The 2030 generation pursues fashion that is "one step ahead of others" and "different from others" based on diverse tastes, resulting in designer brands with less of a ready-to-wear feel gaining attention. Additionally, the newtro craze has brought back previously popular brands, leading to a reevaluation of K-fashion.

Emerging designer brands mainly promote themselves through social networking services (SNS) such as Instagram and disclose product arrival dates. The MZ generation, who felt fatigued by the method of missing out if they did not purchase immediately, found offline spaces where they could see, try on, and experience products attractive. From the department store’s perspective, this lowers the psychological barrier that the MZ generation still had toward fashion sections and encourages them to visit, so they view the entry of designer brands positively.

This attempt was actively made earlier at 'The Hyundai Seoul,' which opened in February last year. Since its opening, The Hyundai Seoul has showcased about 150 domestic fashion brands centered on the basement level 2 'Creative Ground,' targeting the MZ generation. At the time of opening, it was the first in the industry to introduce 13 domestic fashion brands such as Koor and Thisisneverthat, and until last month, it presented pop-up stores of about 140 domestic emerging fashion brands. As a result, sales from the basement level 2 'MZ Hall' exceeded 20% of total sales. The proportion of customers in their 20s and 30s in The Hyundai Seoul’s sales also accounted for 54.2%, more than half. Among purchasing customers, those aged 30 or younger accounted for 65%. Lotte Department Store recently renovated its main branch beauty hall and introduced domestic rising brands such as Tamburins and V&A, aiming to attract the 2030 generation.

An industry insider said, "At a time when fixed ideas about department stores are being broken and experience content is being emphasized, the entry of domestic designer brands into department stores has a meaning beyond attracting the MZ generation," adding, "In the future, attempts to break the mold will continue in other categories beyond fashion and beauty."

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