VIP customers drive majority of sales at Shinsegae's online platform Beyond Shinsegae

More than half of sales generated by Beyond Shinsegae, Shinsegae Department Store's online shopping platform, have come from the department store's offline VIP customers as the platform marks its first year of operation.

Shinsegae Department Store said Tuesday that an analysis of Beyond Shinsegae users over the past year showed VIP customers from its brick-and-mortar stores accounted for 60 percent of total sales.

Department store VIP customers typically favor luxury-oriented shopping in person. On Beyond Shinsegae, their top purchase category was fashion and sports, which made up 55 percent of their spending, followed by cosmetics at 20 percent.

Shinsegae Department Store views the trend as VIP customers extending their in-store shopping experience into the online space through Beyond Shinsegae. VIP customers frequently use the department store's app to book valet parking, visit VIP lounges and redeem rewards — and the company said they are naturally gravitating toward Beyond Shinsegae, which is linked to the same app.

Since its launch, Beyond Shinsegae has focused on synergy between online and offline channels, leading with department store-caliber curation. With the influx of VIP customers, the platform's average monthly sales have doubled compared to last year. Offline purchase amounts by Beyond Shinsegae users have also risen 25 percent from before they joined the platform.

Shinsegae Department Store plans to bring more of its exclusive offline brands online and expand personalized product curation and services that connect the two channels. The strategy is to build a virtuous cycle — where customers who browse online visit physical stores, and in-store shoppers carry their experience online — positioning this as the competitive edge of a department store-style e-commerce model.

Beyond Shinsegae has prepared a first-anniversary customer appreciation promotion running through Aug. 30. The Shinsegae Department Store app will host a guaranteed-win roulette event, offering prizes including Via Shinsegae travel packages, discount coupons and SSG Money credits. The promotion also features a 15 percent discount coupon valid across all categories, a brand week and a 72-hour flash sale.

"Beyond Shinsegae is not an online store meant to replace offline shopping — it is a platform that extends the department store's product strengths, curation and premium customer service into the online space," a Shinsegae Department Store official said. "We will continue to develop it as a new department store-style e-commerce model that connects the online and offline customer experience."