The retail industry is witnessing a shift in foreign consumer demographics. As North American tourists become more prominent, the range of shopping items for foreign customers is expanding beyond cosmetics and food to include fashion.
According to industry reports, GS25's sales to North American customers from January to August this year surged by 130.9% compared to the same period last year, marking the highest growth rate among foreign customers by region. North American sales now account for approximately 30% of total foreign sales, narrowing the gap with the Chinese market, which holds about 40%, to around 10 percentage points. In Gangwon Province, sales to North American customers increased by 337.8%, surpassing the previously dominant Chinese market.
Department stores are also seeing an expansion in their foreign customer base. From January to September this year, Lotte Department Store reported a 110% increase in foreign sales compared to the previous year, with an 80% rise in September alone. The store has enhanced its appeal to foreign tourists by opening a K-Fashion specialty section called 'Kinetic Ground' in July last year. As a result, foreign sales in the young fashion category at the main store increased by 210% from July last year to September this year, with sales to North American and European customers also doubling.
Shinsegae Department Store reported a 231% increase in foreign sales at its main store from January to August this year, with foreign customers accounting for 29.6% of total sales. Luxury goods sales rose by 220%, while men's fashion increased by 148.6%, women's fashion by 146.5%, outdoor gear by 74.1%, and cosmetics by 71.8%. In the first half of the year, Chinese customers made up 48.5% of foreign sales across all stores, with American customers following at 19.1%.
Foreign consumer spending is also growing in fashion stores in Myeongdong. LF's flagship store 'Space H Seoul' saw a 67% increase in foreign sales from January to September this year, with foreign customers making up about 70% of total sales. While customers from the Chinese market still represent over half of foreign shoppers, LF noted that its customer base is expanding to include Southeast Asia, Japan, the United States, the Middle East, and Europe.
The beauty sector is also diversifying its foreign consumer base. Olive Young reported a 47% increase in foreign sales from January to August this year, surpassing 1 trillion won in cumulative sales. Customers from 192 countries made purchases, with the top five countries being the United States, Singapore, Japan, China, and Thailand. As of August, foreign customers accounted for 33% of total offline sales.
The foundation for foreign consumer spending is also strengthening. From January to August this year, the number of foreign visitors to South Korea reached 15.05 million, a 21.6% increase from the previous year, with card spending in the tourism sector rising by 48.5% to a record 14.18 trillion won.
Department stores are expanding promotions to attract foreign customers. Lotte Department Store is hosting a 'Global Shopping Week' offering rewards and discounts for UnionPay customers, while Shinsegae Department Store is conducting the 'Shinsegae Global Shopping Festa' with participation from 120 brands in collaboration with the Korea Tourism Organization. Hyundai Department Store is also providing rewards linked to global payment companies and discount coupons for fashion brands.
An industry insider stated, “While Chinese customers still represent the largest segment of foreign sales, there has been a rapid expansion of customer demographics to include those from the United States, Europe, and Southeast Asia. As the variety of products sought by foreign customers increases, retailers are tailoring their marketing strategies to align with different nationalities and consumer preferences.”
* This article has been translated by AI.
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