South Korea’s top two duty-free brands will go on clearance sale next month, offering up to half prices in luxury names like Prada and Balenciaga, under government’s approval to clear out their stocks amidst dearth of air travelers amid pandemic influence.
The Shilla Duty Free said on Friday that it will launch online garage sale on duty-free stocks next week via online channel Shilla Trip. The channel is a travel package intermediating platform launched in December last year.
Unlike Lotte and Shinsegae that have own retail channel, Shilla Duty Free set up a sale system at Shilla Trip to release stock. Sale will begin as early as next Thursday.
Items including bags and sunglasses will be available of about 40 brands including high-tier Prada, Balenciaga, and Moncler, as well as masstige brands Tumi and Tory Burch.
Items will be priced at up to half the price tagged at department stores.
Shilla Duty Free said that it raised the discount rate and lowered commission rate by utilizing its own platform rather than partnering with other retail channels for the sale. The sale price includes taxes such as for import clearance procedure, distribution cost, commercialization cost, and card commissions.
Consumers wishing to purchase items should connect to Shilla Trip menu on Shilla Duty Free mobile application. Items will be delivered within 7 days after order is made and simplified customs procedure.
An unnamed industry official said that there have been rumors that Shilla Duty Free that does not have its own retail channel was in contact with large online platforms such as e-commerce leader Coupang but it should have been challenging for it to find a channel for large sale while maintaining its brand status. It was the best choice for Shilla Duty Free, the official added.
Lotte Group will begin domestic sale of luxury items it purchased from its duty free store operator next week. It is the first time that inventory of luxury goods become accessible in ordinary stores.
Lotte will sell Spring Summer items of 10 foreign luxury brands at 8 department stores and outlets.
Korea Customs Service temporarily allowed duty-free store operators to clear out their stocks stored in the warehouse for six months or more until October 29 to help salvage duty free industry that has been suffering from plunging sale amid COVID-19 outbreak. Cosmetics, perfumes, alcohol beverages, and health supplement items have been excluded from the exemption.
Shinsegae Duty Free items sold by Shinsegae International earlier this month, meanwhile, were sold out within hours.
By Shin Mi-jin and Lee Eun-joo
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]