Lotte Duty Free said on the 7th that it is partnering with Jung Kwan Jang, the flagship health functional food brand of Korea Ginseng Corporation (KGC), to develop exclusive products and strengthen customer services.
Based on this agreement, the two companies plan to jointly plan differentiated products and expand the scope of collaboration to online and offline marketing and improvements to store environments.
Jung Kwan Jang is KGC's flagship health functional food brand, led by Everytime, Hong Sam Jeong, and Ppuri Sam. It is currently available across all domestic channels, including Lotte Duty Free's downtown and airport stores nationwide and its online duty-free shop.
As global interest in health functional foods grows, Jung Kwan Jang's sales at Lotte Duty Free are also on the rise. In the first quarter of this year, Jung Kwan Jang's sales to foreign customers increased 35% from a year earlier, while sales to Chinese customers rose 46%.
The two companies will first push ahead with joint product planning, including development of an exclusive Ppuri Sam product and the launch of an IP collaboration edition. Jung Kwan Jang's flagship product, Everytime, will be released as a limited edition in collaboration with the global character brand Sanrio. The product is scheduled to be launched in the second half of this year as a Lotte Duty Free exclusive, timed for the Chuseok season.
Lotte Duty Free will also expand online and offline marketing with Jung Kwan Jang. It plans to bolster promotions and experiential content for domestic and foreign tourists and sequentially renovate Jung Kwan Jang stores at major downtown locations to enhance the shopping environment and accessibility.
Meanwhile, Lotte Duty Free has recently been increasing collaborations with brands and regional tourism assets, focusing on attracting foreign customers and strengthening the competitiveness of exclusive products. On the 5th, it signed a business agreement with the Songpa Jamsil Tourism Special Zone Council to pursue tourism events using the World Tower store's promotional space, shopping promotions, and joint planning of tourism products linked to K-culture and gastronomy.
Lee Jeong-min, head of merchandising at Lotte Duty Free, said, "Through this collaboration with Jung Kwan Jang, we plan to further strengthen the competitiveness of our exclusive products and present a differentiated shopping environment," adding, "By combining the strengths of both companies, we will help attract global tourists and improve customer satisfaction."