Shinsegae Duty Free announced on the 21st that it will shift its business strategy from focusing on group tourists to enhancing the attraction of high-value foreign business groups (MICE) and individual tourists (FIT).
This means that instead of simply increasing the number of visitors, Shinsegae Duty Free will focus on qualitative growth by raising the average spend per customer to improve operational efficiency. Following the COVID-19 pandemic, the average spend per customer among group tourists has shown a downward trend, while the average spend for business-themed groups is still 3 to 4 times higher compared to regular group tourists.
Shinsegae Duty Free is providing differentiated services, such as exposure of the largest media facade welcome board among downtown duty-free stores at its Myeongdong location, to corporate visiting groups and business tourists, maximizing the VIP customer experience.
Additionally, Shinsegae Duty Free is focusing on attracting high-value tourists in preparation for the peak business tourism season. In March alone, visits from about 2,000 corporate and incentive group tourists from China and Thailand are scheduled. On the 5th, two corporate groups visited, recording average spending and sales figures exceeding expectations. On the 10th, a Chinese medical and beauty tourism group visited the Myeongdong store.
Shinsegae Duty Free plans to secure over 50,000 customers through its incentive group programs by the end of this year. The medical-beauty tourism program conducted in cooperation with travel agencies is expected to attract over 400 customers per month and more than 5,000 customers annually.
A Shinsegae Duty Free representative noted, "By focusing on premium business tourists who have high spending per customer rather than large groups, we are implementing a win-win strategy that reduces store congestion and increases revenue efficiency." They added, "The visa exemption for Chinese group tourists, set to be implemented in the third quarter, is expected to invigorate not only the tourism market but also the entire duty-free industry."