- 30 or so brands to enter the store, showing around 5,000 products
- There is an increasing trend of using online luxury goods stores among Millennials and Generation Z, in which Sogong 1st Ave. is expected to lead online sales for Lotte Duty Free
- Direct sourcing provides more reasonable luxury goods prices and 100% guaranteed after-sales service
Lotte Duty Free (CEO Lee Kap) stated on November 2 that it will be opening the world’s first online duty free luxury goods store, “Sogong 1st Ave.”, in preparation for the approaching age of Korea's "With Corona" sheme.
Named after the region in Seoul where Lotte Duty Free first began (Sogong-dong in Jung-gu), Sogong 1st Ave. is a new luxury goods store that opened in the Lotte Duty Free website. Around 30 luxury brands of fashion, jewelry, and watches have joined the store, and over 5,000 products are sold here. They offer expensive bags, clothing, and accessories that were not available in online duty-free shops. Lotte Duty Free plans to add a section for wines and whiskeys in Sogong 1st Ave. to enable online pre-order sales of popular liquors while continuously increasing the number of luxury brands in the online shop.
Lotte Duty Free directly sources all the products sold at Sogong 1st Ave. and provides more affordable prices in addition to 100% guaranteed after-sales service, among other differentiated shopping services.
Lotte Duty Free’s ability to attract designer labels began in the first year of its opening in 1980. This was the year when Lotte Duty Free started attracting numerous global brands until it became a global luxurious boutique duty-free shop. It brought in Louis Vuitton, Hermès, and Chanel each year, from 1984 to 1986, being the first in the global duty-free industry to attract the “big three” of the luxury brand industry. Lotte Duty Free's opening of Sogong 1st Ave. is a continuation of the spirit of a “luxurious duty-free shop” that began from the early days, and this will serve as a basis for strengthening its position in both the offline and online luxury brand markets.
In addition, the recent shopping trend of Millennials and Generation Z switching to online designer label shops
is one of the reasons why Lotte Duty Free opend an online luxury goods store. Lotte Duty Free’s online sales have increased from 25% in 2016 to 45% in 2020, with an increased tendency of more customers purchasing online. With the opening of Sogong 1st Ave., Lotte Duty Free’s online sales proportion is expected to maintain the growing trend.
CEO Lee Kap said, “As the online luxury brand sales market in Korea is expanding, we have utilized our affiliations with designer labels to open Sogong 1st Ave. We plan to bring more brands to the service so that our customers can shop luxury products anywhere, at any time.”
Lotte Duty Free, in preparation for Korea's "With Corona" scheme, has carried out a complete renewal of its online duty-free shops in May and July. The company added a live commerce page to its online platform to broadcast duty-free products once a month. It also offers a Sulhwasoo VR flagship store, an AR sunglass fitting service, and more experiential services.