Hyundai Department Store to open club for millennial big spenders

Industry

Published: 08 Dec. 2020, 18:43

Hyundai Department Store to open club for millennial big spenders

A Hyundai Department Store employee explains about Club YP to a customer at its trade center branch in southern Seoul. [HYUNDAI DEPARTMENT STORE]

Hyundai Department Store is getting serious about pulling in millennial money.

The retailer said Tuesday it will introduce a new VIP membership program dubbed Club YP, targeting younger customers from February next year. YP stands for Young VIP.

Members of Club YP will be selected from all customers born in 1983 or later that have spent more than 20 million won ($18,400) with the department store’s membership card this year.

Influencers who have more than 100,000 YouTube subscribers or 30,000 followers on Instagram, celebrities, and people who are leaders in volunteer work or charity donations will also be invited to join the club.

The selected members will be invited to different events and promotions such as a 5 percent off discount for department store products and free parking service.

According to Hyundai Department Store, of its VIP members, people under 40 took up about 15 percent in 2017 but rose to 21 percent this year. Of total luxury goods sales at Hyundai Department Store, purchases by people in their 20s and 30s accounted for 22.2 percent in 2017, but increased to 29.2 percent this year.

“We decided to introduce a new VIP membership program as we thought the existing one could not satisfy the needs of the increasing number of young VIPs who are in their 20s or 30s,” said Yang Myeong-sung, director in charge of sales strategy at Hyundai Department Store.

The retailer also launched Hyundai Department Store Culture Class, offering cultural lectures through Naver’s online lecture platform eXpert during the coronavirus pandemic. Originally, the department store only held the program offline.

Under the new online program, people will be offered various cultural classes such as Pilates, photography, floral arrangements and leather handicraft from a total of 14 experienced lecturers. All students are allowed to communicate directly with the lecturers.

The department store said it aims to expand the number of available lectures to 500 by the end of next year.

BY CHEA SARAH [chea.sarah@joongang.co.kr]