WINNERS GALLERY

Lotte Duty Free

Changyoung Park

Changyoung Park

Head of Business Support Division

Q1. What is the purpose of the digital transformation strategies of Lotte Duty Free Shop?

The digital transformation strategy team was organized in 2020 to implement 3 strategies, ▲flexible business support, ▲efficiency-oriented IT environment formation and ▲ digitalization focusing on customers’ behaviors. With the first untact smart store in the industry, Lotte Duty Free Shop has been changing the offline shopping environment of existing duty free shops to the online shopping environment through a variety of activities, including smart receipts, the overall renewal o thef online platform and the launch of ‘First Sogong Avenue’, the first online high-end duty free shop in the world. Actually, the sales in the online duty free shop increased by 10% just in 1 year, from 34% in 2019.

Moreover, Lotte Duty Free Shop planned to provide an uninterrupted shopping experience 24 hours a day after upgrading omni-service in the second half this year, which will systematically integrate online and offline channels. Customers can experience shops using VR and AR on the online platform and furthermore, check inventories in each offline shop in real time.

Q2. What is the actual case of digital contents?

Lotte Duty Free Shop presented two kinds of super-augmented metaverse (3D virtual reality), services, ‘virtual fitting room’ and ‘virtual concert’ at CES 2022, the largest IT expo held in Las Vegas, USA, for the first time in January 2021.

The virtual fitting room enables customers to try any kinds of goods including bags, accessories, shirts, and trousers in a virtual showroom using a HMD (Head Mounted Display). Using a HMD, customers can virtually see their appearance with the items they select. Lotte Duty Free Shop plans to provide more duty free shopping experiences beyond existing online and offline purchases, including the actual payment for goods in the virtual space through technology development as well as expansion of brands and goods.

Q3. What is the strategy for global business?

The sales in global markets until April this year increased by 140% over the last year. The business achievement is showing the recovery tendency. Continuously opening the new shops, including Lotte Duty Free Sydney, Australia and Lotte Duty Free Danang, Vietnam, Lotte Duty Free Shops will achieve the global sales goals of KRW 250 Billion this year.

Next year, we will strengthen the business in the Asia Pacific region, including the opening of Lotte Duty Free Hanoi, Vietnam and Lotte Duty
Free Changi Airport, Singapore.

2022 WINNERS