Input 2021.03.05 10:10
The Hyundai Seoul, located near the headquarters of LG Electronics in Yeouido, ranked first in LG Best Shop sales
Samsung is ahead of the Galleria Gwanggyo, near the headquarters of Samsung Electronics.
“We protect the store next to the headquarters”…Significant discounts to executives and employees and local residents
A few years ago, home appliances were treated as an assortment in one corner of department store living stores, but recently, demand is increasing due to the spread of the culture of’Zipcock (things only at home)’ caused by the decorating fever and coronavirus infection (Corona 19). It’s a trend.
Unlike fashion and miscellaneous goods that can be easily purchased online, consumers often purchase home appliances and furniture after consulting and looking at products. That’s why the proportion of offline sales is still high.
Last year, sales of household appliances at major department stores such as Lotte (22%), Shinsegae (21%), and Hyundai (19%) grew around 20%. This is in contrast to the double-digit decline in sales of fashion and miscellaneous goods. As the situation arises, department stores are expanding their home appliance stores competitively.
Thanks to this, Samsung Electronics (005930)Wow LG Electronics (066570)I was also excited. It can occupy the point of a new or renewed store.
In the home appliance market these days, customized home appliances are the mainstay. As a home appliance that can be installed according to the structure of the house or customer preferences, Samsung puts up’Bespoke’ and LG’s’Obje Collection’. Since it is a premium home appliance that values service, department store purchases are preferred.
In The Hyundai Seoul, which opened in Parkwon in Yeouido, Seoul, recently, large stores of Samsung and LG opened side by side near the’Sound Forest’ on the 5th floor with the most scenic view. Each 660m2 (approximately 200 pyeong) store is more than twice the size of the existing department store, and it has become so popular that you can wait for two hours to enter.
The performance was also good. According to the industry, The Hyundai Seoul generated sales of about 37.2 billion won for 6 days from the 24th of last month to the 1st of this month, the pre-opening date, of which more than half of the sales came from the 4th and 5th floors of home appliances and living stores. The amount is about 21.2 billion won. This is a tremendous result compared to the combined sales of luxury goods, fashion, and miscellaneous goods that span four floors of less than 10 billion won.
In particular, sales in the home appliance division were good, and on the 25th, half of the total sales (about 6.2 billion won) (3 billion won) came from home appliances. At this point, you can see the new owner of the department store as a home appliance.
On the other hand, at the Galleria Gwanggyo branch, which opened last year, Samsung Digital Plaza is generating overwhelming sales. Constructed on the 6th to 8th floors with a scale of 1,450m² (about 440 pyeong), this store is the largest among Samsung Electronics department stores in Korea. It is said that sales in January-February this year increased by 20% from the average monthly sales in March-December last year.
In terms of this, analysis shows that the activities of the head office employees were supported in the distribution industry. LG Electronics headquarters in Yeouido and Samsung Electronics headquarters in Gwanggyo. It is also because of the reflection of loyalty in the shopping pattern, but it would hurt our pride that the sales of department stores near the headquarters are behind competitors.
For this reason, companies are said to support discount promotions to employees and local residents in order to increase the sales of their stores. In particular, I pay more attention to new or renewed stores. The home appliance stores in The Hyundai Seoul this time also attracted customers with an open discount event of up to 40-50%.
Department stores also specially manage employees of large corporations near the store. In the case of Galleria Gwanggyo, sales of home appliances increased significantly from January to February, but the increase in shopping by Samsung employees who received year-end bonuses was affected. This department store is issuing Friends Cards that give a 10% discount to nearby Samsung and Kia employees.