Hyundai Department Store has launched the industry’s first 'Global Advisory Board' to enhance the shopping experience for foreign customers. The initiative aims to move away from a one-sided service model and involve foreign customers directly in the improvement process.
On July 19, Hyundai Department Store announced the operation of a 'Global CX Advisor' composed of foreign customers. This board will allow foreign individuals to visit stores and provide feedback on inconveniences and suggestions for improvement. This is the first time a department store has established a foreign advisory board.
Recently, the three major department stores in South Korea—Lotte, Shinsegae, and Hyundai—reported record foreign sales in the first half of the year, targeting a 3 trillion won annual market. As the consumer landscape shifts from group tourists to individual travelers, the retail industry is focusing on introducing tailored services to extend their stay.
To capitalize on this trend, Hyundai Department Store selected five foreign advisors from four countries: one each from China and Taiwan, two from Japan, and one from Senegal. The average age of the advisors is 29, and all are women.
The decision to form the advisory board primarily with women in their 20s and 30s reflects the actual composition of foreign customers. In the first half of this year, 70% of foreign customers who made purchases at Hyundai Department Store were in their 20s and 30s, with women making up 81% of that group.
A Hyundai Department Store representative stated, “The advisory board was selected to hear candidly about the inconveniences foreign customers face and their expectations from the department store, as they have a high interest in Korean culture and a good understanding of domestic shopping trends.”
The inaugural advisory board will assess five stores with high foreign visitor rates, including the Apgujeong flagship store, Trade Center branch, The Hyundai Seoul, Hyundai Outlet Dongdaemun, and Hyundai Premium Outlet Gimpo, by early September.
The advisors will experience various situations that foreign tourists may encounter, such as making purchases, attending events, using facilities, and reporting lost items. They will compile their findings into a report for the CX planning team at Hyundai Department Store and discuss improvement strategies through in-depth interviews.
Hyundai Department Store aims to identify specific 'pain points' that foreign customers experience and incorporate this feedback into their operations.
Last June, Hyundai Department Store introduced an AI shopping assistant named 'Heidi' that is accessible to foreign customers. Heidi provides information in 11 languages about pop-up stores, restaurants, exhibitions, and promotional events. At The Hyundai Seoul, 30% of Heidi users are foreign customers.
Recently, the store has also launched 'Heidi Global,' which translates conversations between customers and staff in real-time. Partnerships with Thailand's Siam Piwat Group, Japan's Hankyu Department Store, and Singapore's Marina Bay Sands have expanded services for foreign customers visiting The Hyundai Seoul and Trade Center branches to VIP levels in their home countries.
A Hyundai Department Store representative remarked, “We will actively incorporate the insights gathered from the advisory board into the shopping environment and overall service. Based on the results of this first phase, we plan to upgrade the operation of the second Global CX Advisor in terms of scale and diversity of participants.”
* This article has been translated by AI.
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