Shinsegae Duty Free is linking Amorepacific's Beauty Point membership program to its online mall, allowing shoppers to earn brand membership points while buying cosmetics at duty-free prices. The move aims to expand its online customer base.
Shinsegae Duty Free said on the 1st that it signed a memorandum of understanding with Amorepacific to pursue the strategy at the Westin Josun Seoul on the 28th of last month. Kim Hyun-chul, head of sales and marketing at Shinsegae DF, Kwak Jong-woo, head of e-commerce, and Lee Hye-jin, executive director of Amorepacific's global marketing strategy division, attended the signing ceremony. It is the first time a brand's membership points have been connected directly to a domestic duty-free shopping system.
Under the agreement, users of Shinsegae Duty Free's online mall can link their Amorepacific Beauty Point accounts and accumulate points based on the value of their purchases. Shinsegae Duty Free will build and operate the system within its online mall, while Amorepacific will provide the technology needed to connect the service.
Shinsegae Duty Free turned to a brand membership tie-up because cosmetics account for about 60% of its total category sales, making them its core product group. By combining its own discounts with brand point accrual, the company aims to encourage repeat purchases from existing customers and draw in new ones.
Alongside the service launch, the online mall is running an Amorepacific brand promotion through the 30th. Eleven brands are taking part, including Sulwhasoo, Hera, Aestura, Laneige, Iope and Primera. Customers linking their Beauty Point accounts for the first time will receive up to 5,000 points depending on whether they link, purchase and take delivery of products, plus an additional 1% of their spending on participating brands.
A gift promotion tied to purchase amounts is also under way. Customers spending $150 or more across the 11 Amorepacific brands will receive a coffee gift voucher or a rain-and-sun umbrella. Starting with this event, Shinsegae Duty Free plans to run four large-scale promotions through next year, timed to major holiday seasons.
The company plans to expand its partnerships to other brands that operate their own membership programs and to pursue joint benefits and marketing targeting VIP customers of both companies. "Cosmetics account for about 60% of our total category sales, making them a core product group," an official at Shinsegae Duty Free said. "We will expand brand membership and marketing partnerships to strengthen customer benefits and our competitiveness in the beauty segment."
