2014-02-10 23:48:03 - Mixed Retailers in South Korea - a new market research report on companiesandmarkets.com
Lotte Shopping Co Ltd maintained its position as the leading player in the South Korea mixed retailers market during 2012. In addition, the company also maintained the solid leading position within department stores with a 39% value share. Lotte Shopping Co Ltd continues to focus not only on department stores but also on supermarkets, hypermarkets and the development of shopping centres which specialise in distributing premium brands at factory prices. The company plans to expand the number of its factory outlet-based shopping centres in close proximity to South Korea´s largest cities in a bid to attract female consumers who are interested in luxury brands at low prices. Based on the company´s network of luxury goods suppliers which it has developed
through its longstanding presence in department stores in South Korea, the company is expected to succeed in its attempts to distribute luxury goods at discounted prices during the forecast period.
Although reasonably strong growth was recorded in mixed retailers in South Korea in 2012, department stores recorded weaker growth during the year as demand for premium retail outlets suffered from the uncertain economic situation in South Korea. Nevertheless, variety stores and warehouse clubs each recorded strong growth rates in 2012. Department stores is considered to be a premium retailing channel as it is generally the most popular distribution channel for luxury goods and high quality products of all types. In addition, South Korea´s department stores are famous for their excellent service and for this reason department stores have remained very popular in South Korea for many years in spite of the higher unit prices charged for products than through other retail channels.
However, many of those South Korean consumers who mainly visit department stores to purchase luxury goods shifted to factory outlets towards the end of the review period as the adverse economic situation led to a certain level of hesitancy about spending large sums on non-essential goods in relatively expensive retail outlets. In addition, in a bid to attract more consumers, many South Korean department stores also engaged in discounting and promotional events on a more frequent basis in 2012 than during previous years, which resulted in slower value growth in department stores in 2012.
Mixed retailers is expected to record positive growth in South Korea over the forecast period. Much of this growth is set to be due to the anticipated strong performance of warehouse clubs. Department stores is another channel which can be expected to record rising value sales during the forecast period as the anticipated improvements in the economic situation in South Korea is likely to boost demand for premium retail channels. Consumer confidence is expected to recover particularly strongly over the forecast period, which is set to compromise demand for variety stores, which during the review period benefited from the migration away from department stores. Variety stores is expected to increase in constant value by 2% over the course of the entire forecast period. In terms of outlet numbers, warehouse clubs is expected to be the best performing mixed retailers channel during the forecast period, increasing at a CAGR of 8% while constant value sales are expected to increase at a CAGR of 13%. Warehouse clubs is one mixed retailers channel with the possibility to expand more in Seoul and other urban areas of South Korea during the forecast period.
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