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2023 Marketing Trends in Korea - Importance of Space

Trend : The popularity of space marketing

Due to the prolonged pandemic, there was a lot of view that offline space would die and only efficient online space would survive. However, overshadowing the concerns, this period has highlighted the importance of offline space, which online can never replace.

As the need for a five-sensory experience increases among consumers with reduced face-to-face activities, offline space has evolved from simply selling goods to a marketing platform that gives consumers new experiences, fun and enjoyment of brands and products. In addition, with the characteristics of the MZ generation, which wants to share rare experiences on their SNS for a limited period of time, brands have launched consumer experience marketing by opening differentiated concept pop-up stores around hot places. Brand pop-up stores have become very popular with the public and have become marketing success stories that help make brand issues online and offline.

2022 팝업스토어 언급량 추이

South Korean department stores have also pursued sweeping changes aimed at the MZ generation to get out of the sluggish market. With the "Retail+entainment" strategy, the department store has successfully transformed itself into a MZ generation space that is completely different from the previous department store by operating pop-up stores, expanding art exhibition spaces, opening offline stores for online brands, and expanding cultural and gourmet spaces. As such, the importance of spatial marketing that captivates consumers is expected to continue in 2023, when daily life recovers.

Case Study : Various forms of pop-up store marketing

Solace of Tamburins ⓒ 탬버린즈

Product and Exhibition Combination - Solace of Tamburines

Beauty brand "Tambourines" has opened an exhibition pop-up store with a new collection of perfumes. In addition to the space where you can test the product 1:1 with the staff, the space where you can enjoy various sculptures and various scents was organized like an exhibition. Among them, a giant sculpture with a crouching posture overwhelmed the pop-up store space, drawing keen attention from the MZ generation. It was also successful in making issues online through pop-up store photos, as all applications for weekend visits were sold out within two days of the pop-up store opening.

가나 초콜릿 하우스 ⓒ 롯데제과

Pop-up store program with unique experience elements - Ghana Chocolate House

In order to transform its image into a premium dessert, Ghana chocolate, which was launched in 1975 and has long become a popular chocolate, has opened a pop-up store named "Ghana Chocolate House." Ghana Chocolate House has gained huge popularity among the MZ generation, with 10,000 people visiting every three weeks as it offers a unique experience with "chocolate." It develops a fine dining menu using Ghana chocolate to provide dessert pairing chocolate course dishes, runs a DIY chocolate class where you can make your own custom chocolate with a professional chocolatier, and even special "Chocolate Dessert" and chocolate photo spots created in collaboration with famous chefs who can taste at cafes in pop-up stores. It has been evaluated as a successful pop-up store marketing with various experience programs that properly targeted the tastes of the MZ generation, who are thirsty for unique experiences.

켈로그 오트로드 by 연희 ⓒ 농심 켈로그

The Joy of Finding - Kellogg's Oat Road by Yeon-hee

Nong-shim Kellogg planned a pop-up store by launching a new product. Through collaboration with seven local stores in Yeonhui-dong, the area around Yeonhui-dong became a hot topic by decorating it with Kellogg's pop-up store road. Instead of providing a collective experience through a pop-up store in one space, each store is configured to provide a different product experience by taking advantage of the characteristics of the local store that collaborates.

They offer Granola Latte at cafes, Granola Bagel and Granola Cream Cheese at bagels, and Granola Ice Cream at gelato stores, all seven pop-up stores offer different ways to experience the product, expanding the experience of consumers and adding fun to the search.

Business : The birth of a connected store that connects online and offline experiences

As space becomes more important, online platforms are also going offline to meet consumers. Online platforms offer an expanded brand experience through offline space marketing. In addition, online brands are preparing to provide a super-personalized customer experience by implementing a hybrid space that organically connects online data and technology in an offline space by taking advantage of the strength of their platform.

ⓒ 발란

In particular, this movement is starting around fashion platforms. The luxury shopping mall Balaan' has opened an offline store 'Connected Store'. It is an online/offline connected store that combines the advantages of online and offline where you can see the products you want at a glance and touch and try them on. It was created to expand the luxury shopping experience, an expensive high-involvement product. And as a result, "Connected Store" has resulted in visits and purchases by not only the MZ generation, which values experience, but also office workers in their 30s and 40s who have purchasing power but pursue reasonable consumption. Since it is said that the average weekly sales have increased by 20% in the three months since its opening, the seamless shopping environment that connects online and offline is expected to draw attention as a space for both brand marketing and sales improvement.


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