Department stores and hotels in South Korea are expanding their offerings of private brand (PB) products, capitalizing on their well-established reputations for quality service.
Shinsegae Department Store’s jewelry PB, Addir, reported a 34 percent increase in sales in the first quarter of this year compared to a year ago. Launched in February 2017, Addir positions itself as a luxury jewelry brand centered on diamonds, offering products at prices 30 percent lower than comparable luxury goods.
Hyundai Department Store is marketing its PB products through HBYH, a premium multi-brand store located in eight branches. Popular items include towels and synthetic leather table mats, with PB sales increasing by 24 percent in the first quarter of this year compared to last year.
Lotte Department Store is planning to open a new store for its PB concept, SISIHOSHI, in Suwon, Gyeonggi Province, in June. The store features daily necessities and trendy items popular as gifts among people in their 20s and 30s.
The hotel industry is also expanding its PB product lines, driven by consumer desire to recreate the hotel experience at home. This trend, known as “small luxury,” allows consumers to achieve high satisfaction at a relatively low cost.
Josun Hotels & Resorts has maintained top annual sales among all bedding stores in Shinsegae Department Store’s Gangnam branch for five years with its bedding PB, The Josun Hotel. Customers are drawn to the cozy feel of hotel-quality bedding for home use.
Hanwha Hotels and Resorts’ P Collection focuses on bringing the hotel’s signature scents into homes, starting with a diffuser launched in 2015. Another popular segment in hotel PBs is gourmet food, with hotels competing to offer the best-tasting kimchi.
Consumers trust the quality of department store PBs and are willing to pay a premium for them. Similarly, hotel PB products are purchased for their ability to replicate a unique hotel experience at home.
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