In Myeong-dong, Seoul's top "No. 1 shopping district," Shinsegae Department Store and Lotte Department Store are ramping up competition to attract high jewelry (ultra-high-end jewelry) brands.
According to the retail industry on the 22nd, the high jewelry brand Bulgari is set to open on the first floor of the main building (The Reserve) at Shinsegae Department Store's Jung District main branch. Bulgari is counted among the so-called "world's four major high jewelry" brands along with Cartier, Tiffany, and Van Cleef & Arpels. With Bulgari coming in, Shinsegae's main branch now has the full lineup of the four major high jewelry brands.
The new Bulgari boutique will move into the space previously occupied by the temporary Loro Piana and Celine boutiques. With Bulgari's arrival, the main building now hosts brands from the LVMH (Moët Hennessy Louis Vuitton) group, including Louis Vuitton and Celine.
Shinsegae Department Store is set to reopen its refurbished main building in mid next month as it wraps up renovations. Shinsegae Department Store is pursuing a "Shinsegae Town" strategy linking the main building (The Reserve), the new building (The Estate), and the annex (The Heritage), which is the renovated former headquarters of Cheil Bank.
This is a core project of Chung Yoo-kyung, chair of Shinsegae Co. The goal is to develop the Myeong-dong area into a single luxury town to attract global VIPs. The Heritage, which opened in April, houses the largest standalone Chanel store in Korea, among others. As a result, VIP sales at Shinsegae's main branch in the second quarter of this year rose 11.4% from a year earlier.
Initially, Lotte Department Store's main branch was ahead in the Myeong-dong high jewelry race. In the first half, Lotte successively opened Van Cleef & Arpels and Graff boutiques, completing the lineup of the four major high jewelry brands (Bulgari, Tiffany, Van Cleef & Arpels, Cartier). It also had a wider variety of high jewelry brands such as Chaumet and Chopard, giving it an edge over Shinsegae in terms of diversity.
However, in the second half, as Boucheron, which had been at Lotte's main branch, transferred to Shinsegae's main branch, and Bulgari followed Graff in opening at Shinsegae's main branch, competition intensified. The industry sees a strong possibility that Shinsegae will move to attract additional brands such as Chaumet and Buccellati.
A retail industry official said, "Until the first half, Lotte had secured the lineup of the four major high jewelry brands, but as Shinsegae has successively succeeded in bringing in high jewelry brands, the competition for leadership has intensified." The official added, "There is also talk that another LVMH jewelry brand, such as Chaumet, could enter Shinsegae."