Lotte Duty Free extends local sales to home shopping channel

Bally wallets and Tory Burch and Vivienne Westwood handbags feature in inaugural Lotte Homeshopping sale

SOUTH KOREA. Lotte Duty Free is teaming up with Lotte Homeshopping’s mobile TV channel from 8:00 p.m. tonight in a sale of duty free* items to Korean customers who can shop without leaving the country.

[*In an important clarification, a company spokesman told The Moodie Davitt Report that as relevant taxes/duties have been absorbed by Lotte Duty Free, the products are “technically no longer ‘duty free’.]

Lotte Duty Free said it was the first travel retailer to collaborate with a home shopping platform to sell products.

Shoppers will be able to shop a range of Bally wallets and Tory Burch and Vivienne Westwood bags with up to -45% off.

The travel retailer announced: “All products sold that day are 100% genuine imported by Lotte Duty Free and are duty-free items that customers can purchase without having to leave the country.”

As reported, the Korea Customs Service (KCS) introduced a temporary program in mid-2020 to help the country’s struggling travel retailers, whose revenues have been severely hit by the drop in inbound and outbound travel linked to the pandemic.

The program allowed unsold inventory to be sold duty-free (with applicable taxes and duties) through local channels such as e-commerce, department stores, outlets and other platforms.

Lotte Homeshopping is described as an omnichannel service medium that breaks down the boundary between online and offline, allowing customers to buy the products they want anytime, anywhere.

Lotte Duty Free today said it plans to expand distribution channels for ‘duty free’ products through ‘domestic clearance’ as part of an ongoing partnership with Lotte subsidiaries such as Lotte On, Lotte Home Shopping and 7-Eleven. This will make it easy for Korean customers to purchase duty-free products, the company commented.

Following the collaboration between Lotte On and Lotte Homeshopping, for example, an exclusive store will be opened on the 7-Eleven APP in April.

Lotte Duty Free has also opened a dedicated Lotte Duty Free store in Lotte ON. It offers a range of products allowing customers unfamiliar with inland duty-free clearance to purchase luxury goods at reasonable prices compared to department stores, the retailer said.

In 2020, Lotte Duty Free also opened LUXEMALL – an online shopping mall exclusively dedicated to selling surplus duty free goods to local non-traveling customers. Currently, the platform offers 40,000 products from 85 brands.

Park Seong-hoon, Head of Product Division 2 of Lotte Duty Free, said, “We are preparing this broadcast collaboration with Lotte Home Shopping so that more customers can purchase luxury goods at reasonable prices.”

Christy J. Olson