Korea'S Department Stores Encounter Waterloo'S Critical Moment

For a long time, Seoul, South Korea, as an international business center and financial center, has great experience in absorbing the high-end consumer, the radiation power of the surrounding cities, and the leadership of fashion lifestyle.

However, in the past two years, in the general depression of the global retail industry, the Korean department stores also began to face the current situation of declining performance, closing shop stops and adjusting self rescue.

The South Korean department store, which has studied from Japan, has experienced a rise from 1997 to 2003. But since 2014, the Korean department store has suffered the double impact of the electricity supplier and the shopping center again.

Sales decline, close shop, evacuate...

The Korean department store industry looks grim.

In 2014, Lotte Department Store in Korea was hit for the first time in ten years.

Slide downward.

Lotte Department Stores operates 116 department stores in South Korea and 9 in the international market, including 5 in China, 2 in Vietnam, 1 in Russia and Indonesia.

Lotte store, Moscow 1, which opened in 2007, is the first department store in the Korean department store to enter the international market.

The Chinese market is the most valued overseas market of Lotte Department store.

In February 13th, the reporter joined the official website of Lotte Department store. He saw that besides the currently opened Beijing Lotte Yintai department store, the confirmed Tianjin and Shenyang projects, including Shanghai, Dalian, Qingdao and other cities, will gradually appear in Lotte Department store. It is estimated that there will be more than 20 Lotte shops in China in 2018.

However, the problem that Lotte Department can't get around is how to develop quite frustrations.

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In 2008, Lotte's first entry into the Chinese market was officially opened in Beijing Wangfujing Lotte Department store.

As a joint venture between Yintai group and Lotte Group, both sides hold 50% shares in the department store.

However, the Lotte Department store, which has been looking forward to Lotte, has been greatly surprised by its actual operation. Data from Yintai department show that in just 4 months, the mall lost 102 million yuan.

"In

When Lotte handled the project, the mall acquired a lot of Korean goods, but because the operation team did not know enough about the consumers in Beijing, a large number of goods fell into the hands and led to huge losses.

At the same time, in order to invite big brands to enter the market, the shopping center has made the benefits of subsidized decoration, rent free and so on, and the shopping mall has been inviting foreign capital team to operate, which is expensive.

People familiar with the shopping mall have told the media.

For a long time, trapped in poor performance, Lotte intime had to continuously reduce the number of proud Korean brands and eventually renamed the "IN88".