Hyundai Department Store inks partnership with Thai mall group

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Hyundai Department Store inks partnership with Thai mall group

Published: 21 Feb. 2024, 18:41

SEO JI-EUN
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President of Hyundai Department Store Jeoung Ji-young, left, and CEO of Siam Piwat Group Chadatip Chutrakul pose for a photo after signing an Memorandum of Understanding on Tuesday. [HYUNDAI DEPARTMENT STORE GROUP]

Hyundai Department Store has signed a partnership with Thailand’s Siam Piwat Group to introduce a K-culture-oriented store and export the successful department store format behind The Hyundai Seoul to the Southeast Asian market.

Established in 1958, the Thai group operates shopping malls like Siam Paragon, Siam Discovery, and Siam Center.

Under the comprehensive business agreement, Hyundai Department Store will establish a special store featuring K-content items such as K-pop, K-food, and K-webtoons at a shopping mall operated by Siam Piwat Group in Bangkok. Additionally, Hyundai aims to assist small- and medium-sized Korean brands with entering the store to facilitate their expansion into Southeast Asia.

Both retail groups will exchange insights on store operations and collaborate on a joint research project to incorporate The Hyundai Seoul’s successful strategies into the Siam Piwat Group's malls, including the integration of popular elements like pop-up stores and store layouts that resonate well with the younger generation.

Furthermore, the two entities have agreed on a VIP marketing partnership, allowing high-spending customers to enjoy reciprocal benefits between their respective shopping malls.

Hyundai Department Store said that the partnership came about at the request of the Thai group.

“Employees of the Siam Piwat Group, who resumed their global offline retail tours last year following the pandemic, were greatly impressed by The Hyundai Seoul [in Yeouido, western Seoul],” said an official from Hyundai Department Store. “Despite the challenges faced by offline retail worldwide due to the Covid pandemic and the rapid growth of online shopping, The Hyundai Seoul has been acknowledged as a hub for Millennials and Gen Z.”

Initially met with skepticism due to its location in the Yeouido corporate district where weekend foot traffic tends to decline, The Hyundai Seoul surpassed expectations by achieving 1 trillion won ($749 million) in annual sales within 2 years and 6 months of its opening, the fastest among domestic department stores. Its success is attributed to its basement floor, featuring a fashion section with trendy brands and a variety of pop-up shops.

Fifty-eight percent of its sales last year were generated by customers aged 20 to 30, twice the proportion of other Hyundai Department Store branches.

The agreement with Siam Piwat marks the Korean retailer’s first partnership with a foreign group, while discussions are ongoing for a similar deal with a Japanese retailer.

“Through this partnership, we intend to spread the excellence of The Hyundai Seoul not just in Thailand, but throughout Southeast Asia,” said Jeoung Ji-young, president of Hyundai Department Store.

BY SEO JI-EUN [[email protected]]