Retailers are enhancing travel and shopping convenience services to attract foreign consumers in regional areas. The aim is to reduce the time and burden associated with shopping and movement, tailored to the limited stay of visitors.
According to industry sources, Shinsegae Simon has expanded its 'One-Day Tour' for foreign visitors at the Yeoju Premium Outlet from twice a week to daily operations since last month. They have set up a dedicated information desk providing foreign language maps and tax refund and shopping information, and have also introduced unmanned currency exchange kiosks.
Musinsa Standard's Busan Seomyeon store has offered currency exchange and luggage storage services since its opening, considering foreign visitors. It supports on-site tax refunds and payments through Alipay and WeChat Pay, reducing the burden of moving to different locations for currency exchange and refunds. From January to August this year, the proportion of purchases made by foreigners rose to about 30%, an increase of 11 percentage points compared to the same period last year.
Equipping stores with payment methods familiar to foreigners aligns with on-site demands. A survey conducted by Busan City in August with 34 foreign tourists revealed that respondents from China pointed out the lack of places to use WeChat Pay and Alipay as areas for improvement. Lee Eun-hee, a professor of consumer studies at Inha University, stated, "The ability to make payments and the tax refund process are crucial purchasing conditions for foreign customers," adding that it is necessary to reduce the burden of using stores for refunds.
Locations with concentrated tourist visits are also adjusting staffing accordingly. Olive Young in Busan's Nampo Town deploys additional staff during peak hours for cruise tourists. Popular global products, including cosmetics, food, and wellness items, are grouped on the first floor to minimize search time. Store operations have been adjusted to align with the demand for assistance and payment during busy periods.
The backdrop for retailers focusing on the convenience of foreign tourists is the growing foreign consumer spending in the region. According to the Korea Tourism Data Lab, foreign tourist spending in Busan reached 1.01 trillion won from January to September this year, surpassing 1 trillion won for the first time during this period. This represents a 51.9% increase compared to the same period last year, with shopping accounting for the largest share at 48.2%, followed by food and beverage at 21.7%, leisure services at 11.6%, and medical wellness at 10.6%.
As foreign visitors flock to Busan, the retail sector is also seeing significant investment movements. Shinsegae Department Store announced last month its acquisition of Lotte Department Store's Busan Centum City branch. The two stores, which have competed side by side since 2009, plan to operate together and connect their spaces to enhance synergy. In addition to the existing department store and Centum City Mall, they are also pursuing site development that includes hotels, offices, and residences, aiming to break ground next year. The plan is to create a 'Shinsegae Town' that integrates shopping, culture, tourism, and residential functions, allowing visitors to enjoy shopping, accommodation, and leisure.
Experts point out that to ensure the expansion of shopping and tourism facilities translates into actual visits and spending by foreigners, it is essential to lower barriers from the reservation stage. Lee Hoon, a professor at Hanyang University’s Department of Tourism, noted, "As the overall number of visitors to Korea increases, the absolute number of regional visitors is also growing, along with their share of visits to the region," emphasizing the need to improve the reservation system, which is generally centered around domestic mobile phone numbers, to accommodate foreign users.
* This article has been translated by AI.
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