Last October, the 'Judgment of Seoul' project held by Lotte Department Store garnered attention among the MZ Generation (born between 1980 and 2000) with the participation of the famous Japanese wine manga 'The Drops of God' artist, Tadashi Aki and his siblings. The Judgment of Seoul was a homage to the blind tasting event 'Judgment of Paris' held in Paris, France, in 1976. It was the first time a domestic department store hosted a large-scale blind tasting competition.
The Judgment of Seoul received entries of 'value-for-money' domestic wines priced under 100,000 won, and the judging panel selected the winner solely based on taste. The winning wines, priced between 40,000 and 50,000 won per bottle, became popular as affordable gifts, resulting in an increase in wine sales at Lotte Department Store late last year. Importers noted that the introduction of domestic wines created a new market, leading to a 'win-win' situation.
"For customers, wine should be an 'experience', not just a 'drink.'"
Recently, the domestic wine market has been experiencing a recession. The wine market, which saw remarkable growth during the COVID-19 pandemic, has been on a decline in both volume and value due to the economic slowdown following the transition to endemic status. As of November 2024, wine import volumes dropped by about 28% compared to the same period in 2021, which was a boom year.
Although market conditions are unfavorable, Lotte Department Store's wine and liquor team is seeking new breakthroughs under the conviction that 'demand is still alive.' Leading this change is Head of Team Hyun-mo Yang. Joined by Chief Buyer Jun-seon Choi, a former sommelier, and Buyer Jun-ho Choi, the team's expertise and planning capabilities have been strengthened.
Head of Team Yang views the current market situation not merely as a crisis but as a 'restructuring opportunity,' continuing his efforts to expand consumer influx. A two-track strategy centering on 'value-for-money wines' and 'premium wines' is at the forefront. Leading the department store's food and beverage trends, he has previously introduced popular dining brands like Noted and Samseong to Lotte Department Store.
Head of Team Yang said, "The more challenging the market, the more customers want 'more curated experiences.' We are planning those options." According to his intentions, the concept of value-for-money wines chosen by the author of The Drops of God stimulated interest among younger consumers, leading to an increase in sales. The 'Double Blind Wine', released as a Winning wine of the Judgment of Seoul, achieved cumulative sales of 10,000 bottles by the end of last month.
With the success of the Double Blind Wine, Lotte Department Store's wine sales in December of last year increased by about 10% compared to the same month the previous year. This figure outpaced the overall wine sales increase rate for 2024 by about 5 percentage points. The proportion of young customers purchasing the Double Blind project was 49%, over 20% higher than usual.
Experiential wine experiences for MZ consumers have also been enhanced. Lotte Department Store is hosting 'Some for You' wine gatherings for its 'Combine' wine membership members. Four sommeliers affiliated with Lotte Department Store and 24 members participate in blind tasting events. These events are held every two months, and the number of Combine members rose from 6,000 in April of last year to 22,000 within a year. Head of Team Yang explained, "These individuals represent a potential pool of long-term VIP customers, so we approach them in a way that combines accessibility and stories."
To satisfy loyal customers and VIP clients whose tastes are becoming increasingly refined, premium curation has also been enhanced. The globally scarce whiskey 'Prima and Ultima' was sold out in exclusive sales to VIPs, and a champagne that was a collaboration with Daniel Arsham was brought to Korea in a single bottle. The 'Donmelcho' art wine, produced in collaboration with artist Hwan-ki Kim, sold out 3,000 bottles in just six months.
The expertise of the wine and liquor team underpins this curation. Lotte was the first distributor to implement a team system and recruit expert sommeliers. Currently, two of the three Asian champion sommeliers, including Chief Buyer Choi, are affiliated with Lotte Department Store. It is also the first time in the industry that a sommelier has been brought in as a buyer. Currently, a total of four sommeliers are participating in planning at the site and headquarters. Chief Buyer Choi explained, "It's a structure where on-site experience and customer feedback are immediately reflected in planning."
This year, the Lotte Department Store wine and liquor team plans to continue its two-track strategy of premium and value-for-money. High-priced wines will target the premium market through exclusivity and cultural content, while the Double Blind series will expand based on the blind tasting competition. Additionally, new alcohol trends such as tequila, sake, and RTDs will be reflected, accelerating the discovery of new products that satisfy diverse consumer preferences.
Head of Team Yang stated, "Our role is not just to sell wine but to design the tastes and life moments of our customers, and we will continue to create new values in department store distribution through experience-centered alcohol content."