SOUTH KOREA. Lotte Duty Free will host the fifth stage of its sale of undepleted duty free inventory from 11 September to 4 October.
The sale, to be conducted via Lotte Duty Free ecommerce channel Lotte On, covers 1,800 products from 66 international brands, including Bottega Veneta, Ermenegildo Zegna, Etro, Tod’s and others.
As reported, the travel retailer began divesting some KRW20 billion (US$16.5 million) of unsold stock through alternative local channels on 23 June and the event is continuing due to positive public reaction. The event was dubbed ‘Maum Bang Yeok’ (literally ‘mental quarantine’, a modern Korean idiom being used to express the concept of addressing the mental pain caused by COVID-19).
Korea Customs Service (KCS) announced on 29 April that it accepted the local duty free industry’s request to offload unsold stock (after paying import taxes) through a range of channels.
Lotte Duty Free Lee announced the new fifth phase today, saying that prices would be discounted by as much as -70% compared with the same items in its department stores.
The latest round sees electronics devices added to an extensive category line-up that offers bags, shoes, watches, fashion, sunglasses and beauty devices. Bose Bluetooth speakers, luxury suits from Ermenegildo Zegna and French premium children’s clothing products from Bonpoint are among many new items to make their debut.
In order to live up to the expectation for fast delivery, Lotte has prepared an ‘expedited delivery’ corner that releases products for fulfilment within three days of ordering. Delivery of purchases made before 24 September will be assured in time for the festive Chuseok holiday season (30 September-2 October). Parcel delivery orders usually spike before Chuseok and online deliveries are often delayed around this time of year.
A Lotte Duty Free spokesperson said: “We have prepared large volumes for domestic sales ahead of the Chuseok festive period and we will work towards providing a diverse range of products to enhance the level of fun in shopping.”
The latest sell-off comes at an opportune time as travel retailers expect gifting to be unusually high. The government and the Korea Centers for Disease Control and Prevention have pleaded with the Korean people to stay home during Chuseok and refrain from visiting family members. A widespread movement of people visiting family members across the nation is viewed as highly risk in terms of spreading COVID-19.
That risk is likely to spur Chuseok-related spending as many of those unable to visit their families are likely to send gifts – and treat themselves. Both dynamic bode well for Lotte Duty Free’s latest round of domestic channel sales.
