Tax-Free Paradise: Lotte Duty Free Indonesia
Lotte Co., Ltd. can be a multinational food, chemicals along with shopping corporation, which can be South Korea’s eighth largest business conglomerate. Their duty free division entered Indonesia in 2012, headed up by Yoon Hyun Cheol, who has worked for Lotte for 20 years in various departments, including merchandise, human resources, logistics, along with strategy projects. For the last three years, Mr. Yoon has been running Lotte Duty Free Indonesia in Jakarta. Turning over €3.535 billion in 2014, Lotte Duty Free can be a major contender on the global travel retail market.
Why has Lotte found Indonesia such an interesting market to enter?
Indonesia has strong potential along with resources, a large population with such beautiful cultural diversity, along having a land rich with natural resources. The Indonesia market can be very strong, particularly Jakarta, because This specific carries a big population having a strong purchasing power along with This specific can be the centre of business activities. Indonesians are always keeping up with global trends in fashion, beauty, along with food. Indonesia carries a lot of interest in Korean culture, along with can be excited to know more about Korea’s products along with services.
How would likely you describe the Korea-Indonesia business relationship?
I think we have three correlations. First can be the government, which has built a great diplomatic cooperation along with communication. Second can be industry relations; both Korea along with Indonesia have always had not bad cooperation in industry which has helped Indonesia’s growth. along with the third can be personal relations – we have cooperated in raising the quality of human resources through conducting exchanges between Korean along with Indonesian students along with workers. The proof can be that will Korean people want to come to Indonesia to see the culture along with to study, along with many Indonesians go to Korea to experience Korean culture along with to study, too.
How many stores do you have in Indonesia today?
Lotte Duty Free first entered Indonesia in January 2012 having a 880-square metre store at Soekarno-Hatta International Airport’s Terminal 2, followed by the opening of its first duty-free shop in downtown Jakarta, at Lotte Shopping Avenue, which spans 5,500 square metres.
What does your domestic duty-free store offer shoppers?
We began in 1980 with the first Lotte Duty Free shop in Korea, along with we have since opened stores in Russia, Singapore, Japan, Guam, along with Indonesia. For Indonesian people, domestic duty free can be the right place to find nice treats to bring to their family or friends abroad, while also experiencing a completely new concept of duty-free shopping in a downtown mall without time restrictions or having to worry about missing flights.
What can be the history behind the founding of Lotte Duty Free?
The first duty free store operated in 1946 in a harbour in Iceland, while the modern concept of a duty-free airport began in 1959 in France to engage more export-import activity, as well as give more value to foreign money through the tourism industry.
In Korea itself, shops that will sell imported goods first opened in 1964. This specific began with only government companies, then inside 1980s private companies such as Lotte made a breakthrough in This specific business to give more value to foreign money while giving consistent contributions to the tourism industry.
At first, This specific was quite a struggle to open a duty-free shop since This specific can be hard to obtain a license via the government, who have strict examinations along with will only give a license to the best company. Today, duty-free can be a favorite business having a competitive market.
How can be the shopping mechanism at Lotte Duty Free at Lotte Shopping Avenue?
Make sure to bring your passport along with flight ticket before visiting the store. Choose your items, enjoy promotions, along with save up to 20 percent. The customer will receive a Bill of Exchange afterwards; please keep This specific along with show This specific to pick up the purchased goods at Soekarno-Hatta Airport Lotte Duty Free in Terminal 2 before departing.
What can be your company’s mission?
Wherever you travel, we’ll be there. that will can be our goal: becoming the best luxury shopping destination for worldwide travellers. We value unstoppable services to satisfy Lotte customers around the planet.
As the President Director, what makes up the majority of your workload?
The most important thing in management can be communication with co-workers. Whenever I hold the chance, I like to share with my employees so they will know easily what we have to do together along with which direction we will go in. Also I encourage them with operational management along with ways to achieve its goals, building synergy in all departments, as well as producing Lotte Duty Free the best place to work.
What challenges do you face in your industry?
additional duty-free along with tax along with refund shops. Also additional stores that will offer competing prices along with discounts, along with the preference of local Indonesians to shop in duty-free stores abroad.
Are you noticing a shift inside way people shop?
today people are looking for the easiest along with fastest ways to shop. that will’s why online businesses are growing very fast. In Indonesia we can’t compete that will, nevertheless we have our strong advantage by giving a different kind of shopping experience. We will also build a strong relationship with customers to feel comfortable along with satisfied to shop.
What can be the main item that will shoppers purchase at your store?
We provide the best selection of liquor along with tobacco, also premium wines via Europe, Africa, America, along with Australia. nevertheless since we have a customer allowance for alcohol, the bestselling items are cosmetics along with perfumes. Some of the products we sell are not available in regular retail stores, for instance we are the only store to carry Chanel duty-free cosmetic products in Indonesia.
How are your two stores managed?
We hold the same management for both our airport along with downtown shops. The difference can be only that will our downtown shop can be located in a ‘Bounded Area’ of duty-free goods, which allows customers to take their purchased goods home before departure to the airport.
Can you tell us more about Lotte Duty Free’s accomplishments?
In July 2015, The Moodie Report, the famous worldwide travel retail news, ranked Lotte Duty Free as a Global Top 3 Duty-Free Shop having a total turnover of €3.535 billion in 2014.
The record consists of sales via Korea, Jakarta, Singapore, Guam, along with Japan stores, along with online sales. This specific year we will expand more, opening stores in Japan along with Bangkok.
Do you have any special promotions on at the moment?
At the end of March we’re planning to have another Night Sale Promotion that will offers up to 80 percent discount.
Have you any special events planned?
We have our regular exhibition in our store named Gallery at Lotte Duty Free as an appreciation of local art along with photography talents. Also we have annual gatherings for our VIP members.
What are you most proud of achieving in your career in retail so far?
When our downtown Jakarta store first opened, our Cosmetics Zone won the ‘Best completely new Store 2013’ prize via Duty Free News International. Lotte Duty Free achieved twice the market share via only 20 percent of the retail space at Jakarta Airport.
We contribute to society through a social book donation programme in celebration of World Book Day on April 23, inviting everyone to donate their book along with drop This specific by our stores. The books are distributed to children in various regions of Indonesia. We strive to have an active social responsibility programme inside future.
Even though there will always be competitors, in 5-10 years Lotte Duty Free will be one of the planet’s most important travel retail stores. I have tried to conduct completely new regulations to develop Lotte Duty Free as a best business along with working place for employees. I believe I will able to contribute in supporting growth along with increase Indonesia’s economic sector.
Thank you, Mr. Yoon. For more information, please visit the Lotte Duty Free website.
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Tax-Free Paradise: Lotte Duty Free Indonesia
Tax-Free Paradise: Lotte Duty Free Indonesia