Hyundai Department Store targets China's wealthy young shoppers with BFC Mall VIP tie-up

Hyundai Department Store announced Wednesday it will launch a joint VIP marketing initiative with BFC (Bund Finance Center) Mall, a premium lifestyle mall in Shanghai, China.

The two companies recently signed an MOU on VIP service cooperation, making BFC Mall Hyundai Department Store's fifth global retail partner for VIP collaboration, following tie-ups in Thailand, Japan, Singapore and Macao. Under the agreement, both sides will begin offering reciprocal benefits to their VIP customers this month.

BFC Mall sits within the 430,000-square-meter BFC complex and has drawn local shoppers and international tourists with pop-up stores featuring global intellectual properties such as Harry Potter and Pokémon, along with a range of experiential content. More than half of BFC Mall's VIP customers are said to be in their 20s to 40s.

Hyundai Department Store VIP customers visiting BFC Mall will receive access to the VIP lounge and tickets to the Fosun Foundation Shanghai. They will also be able to use concierge services including local tourism consultations and priority restaurant reservations. In return, BFC Mall VIP customers visiting South Korea will gain access to the VIP lounges at The Hyundai Seoul and the Trade Center branch, as well as fast track service at luxury brand stores. They will also receive passes to the cultural complex ALT.1 and special discount benefits.

Hyundai Department Store's push to attract high-end Chinese customers comes as spending by Chinese tourists visiting South Korea has surged. BC Card data on card spending by foreign nationals in South Korea in the first half of this year showed Chinese customers recorded the highest growth rate of any nationality, with card spending up 82.1 percent from a year earlier.

Hyundai Department Store plans to expand its VIP service alliances with global retail partners. It currently has joint VIP marketing agreements with Thailand's Siam Piwat Group, Japan's Hankyu Department Store, Singapore's Marina Bay Sands and Macao's Sands China. The company is also in talks to forge partnerships with retail channels in France, the United Kingdom, Spain and other European countries.

"We will strengthen VIP marketing collaboration that breaks down borders between countries, attract high-spending overseas VIP customers, and showcase Hyundai Department Store's distinctive shopping and cultural experiences to the world," said Yang Myung-sung, executive director of sales strategy at Hyundai Department Store.