The Numbers
South Korea’s booming capital, Seoul, is the country’s largest city, with more than 9.7 million people residing in its borders. Home to major players in the electronics and automotive industries, like Samsung, LG and Kia, its global household names have made its economy the thirteenth largest in the world.
Surrounded by mountains and the popular Bukhansan National Park, Seoul is the tenth most visited city in the world, hosting 8.6 million tourists and business travelers in 2014.
The Pulse
In five decades, Seoul went from a city decimated by war to one of technological advancement. With investments from both private companies and the country’s government, it boasts an advanced IT infrastructure: Free WiFi is virtually everywhere – even on the city’s extensive subway system – and more than 95 percent of South Korean households have a broadband connection.
Other initiatives in the last decade have enhanced the city’s aesthetics and boosted its status as a leader in design. In 2010, the city earned the title of World Design Capital from The International Council of Societies of Industrial Design (Quebec). The designation was partly influenced by the highly trafficked Dongdaemun Design Plaza, an expansive, neo-futuristic urban development designed by architect Zaha Hadid and SAMOO Architects & Engineers.
The Hotspots
Behind the cosmopolitan high streets, peppered with luxurious department stores like Hyundai, Lotte and Shinsegae, a labyrinth of bustling street markets sell everything from smartphones to seafood.
Among these markets is the Myeongdong shopping and entertainment district where the country’s most popular brands, in addition to hallmarks of Asia, Europe and the West, are readily available.
Lotte World Mall, the largest shopping and entertainment complex in the country, opened in Seoul this past November.
Obstacles/Opportunities
Seoul’s newfound wealth along with its sizable (and growing) population make it an attractive market. The city is currently experiencing a surge in lifestyle stores that sell home goods, appliances and accessories, influencing retailers like Zara Home, H&M Home and Crate and Barrel to ramp up expansion plans in Seoul.
Western retailers looking to enter Seoul will have to tap into Hallyu, the term for South Korea’s young, fashion-conscious culture, says Linda Krueger, principal, Krueger Retail Design (Indianapolis), who has worked extensively with clients in Asia. It’s also a necessity for brands to invest in endorsements from South Korean celebrities. “Most of all,” Krueger says, “Western brands will have to strike the right cord with the trendy and vibrant youth culture. Especially in cosmetics and fashion, it’s very competitive.”