NEW YORK – April 28, 2015 – Lippincott, a leading global branding firm, today revealed the strategy behind its design for Lotte Duty Free, the largest duty free store in South Korea. The space incorporates dynamic content and state-of-the-art technology to activate visual merchandising, drive product engagement, and create a unique visitor experience. The signature experience employs digital media to display video content, representing the marriage between east and west cultures and the past and the future. The store, featuring a wide array of Korean and international brands, is reported to have contributed to a 20% rise in average daily sales of Lotte Duty Free.
Located on the 7th and 8th floors of the World Tower Mall, which is a multi-purpose complex housing a department store, shopping mall, movie theater, and aquarium annexed within an impressive 123-story Lotte World Tower, Lotte Duty Free’s large space (10,990㎡ total gross area) afforded Lippincott the opportunity to create an immersive environment for the shopper’s journey.
With the goal of showcasing an “approachable luxury” experience unique to Lotte Duty Free, Lippincott developed a digital content and in-store merchandising strategy to engage shoppers throughout their journeys. Although incorporating LED technology within retail is a growing trend, it has never before been implemented in Korea at this magnitude and with such rich content.
Throughout the store, immersive content both informs and entertains visitors. Video content changes throughout the day and combines entertainment (K-pop artist videos), local heritage (Korean art and sculptures) and natural environments (ambient landscapes). Particularly beautifully choreographed images of travel destinations around the globe, designed to evoke excitement and curiosity about traveling, resonate well with the target customers. Lippincott also incorporated Lotte Duty Free’s signature “Star Avenue,” a popular destination for foreign tourists, into the store itself with “Star Bridge,” a two story, connected collection of LED screen panels that bring to life the images of Korean Wave stars.
To provide a seamless customer experience with memorable design, Lippincott’s visual merchandising strategy employed three LED installations: surrounding the store’s perimeter, hanging above the escalators, and wrapped around in-store columns. These LED installations are impressive in size, distinctive in form, and integrated into the building’s structure without compromising retail space.
“Our work with Lotte reflects the convergence of entertainment and retail, as well as the coming together of digital and physical experiences,” says Fabian Diaz, senior partner, experience innovation, Lippincott.
“When it comes to visual merchandising, the biggest question for retailers is how to engage customers without taking up too much saleable retail space,” says Hyun-Joo Eum, partner, Lippincott. “The new Lotte Duty Free shop’s strategy demonstrates a non-compromising, win-win case of achieving both maximum retail space and maximum impact on customer experience. It integrates visual merchandising elements as a part of the broader retail environment but does not fail to deliver a “Wow” impact.”
Lippincott also designed an entire visual system for the brand, which is featured at major customer touch points throughout the new Lotte Duty Free store. The concept, ‘New Wave, New Shopping,’ is a reflection of the company’s aim to create a future-forward retail shopping experience. The main visuals recreate the light movement of fabric and are featured across all brand touch points and LED screens.
On the new identity, Vincenzo Perri, Lippincott Creative Director in Asia said, “It’s inspiring and dreamy. Like this new way of shopping, everything flows and connects gracefully and beautifully.”
Speaking at the press conference at the opening, Lotte Duty Free CEO Hong-Kyun Lee described the space as “world-class not only in its scale and the number of featured brands but also in its interior design and great shopping environment…We will concentrate our capabilities on turning Lotte World Tower into Asia’s iconic landmark for shopping, tourism and culture.”
Offering 420 brands, the store is the largest duty free store in Korea, the second largest in Asia and the third largest in the world. It also boasts the largest offering of Korean beauty brands that are especially popular among Chinese and South East Asian shoppers and are gaining global recognition and admiration.
About Lotte Duty Free
Lotte Duty Free is part of retail division of Lotte Group, one of Korea’s market leaders with its history dating back to 1980 when the first Korean duty free store opened in Sogong area, Seoul. Over the past 35 years, the company has grown into the No.1 Korean retailer operating 7 domestic and 6 overseas stores. With its grand opening of Guam, Kansai International Airport and Lotte World Mall stores in 2014, Lotte Duty Free recorded more than KRW 4 trillion (USD $3.6B) sales. It anticipates to retain unrivaled domestic market leadership and join the ranks of global top 3 duty free brands.
Lippincott is a leading global branding consultancy. Our passion is to create, build and grow iconic brands that inspire customers and employees and deliver lasting results for our clients. Our approach is equal parts strategic thinking and creative excellence. It encompasses deep, integrated capabilities in Brand Strategy, Design and Expression, Experience Innovation and Organizational Engagement. An industry pioneer for over 70 years, we are restless in our commitment to our clients and to uncovering new possibilities to help shape their brands for the future. Lippincott is part of Oliver Wyman, a wholly owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].