Lotte Department Store blurs rival lines with Hyundai Card partnership

Courtesy of Hyundai Card Co.

South Korean retail companies are choosing to collaborate with former rivals to create new revenue opportunities.

According to sources on Thursday, Lotte Department Store Co. partnered with Hyundai Card Co. to launch co-branded credit cards and implement data-driven personalized marketing strategies.

Hyundai Card has introduced two new cards offering up to 10 percent rewards for Lotte Department Store customers.

Traditionally, Lotte Department Store has issued co-branded cards exclusively through Lotte Card Co., a company in which Lotte Shopping holds a 20 percent stake.

The decision to collaborate with Hyundai Card signals Lotte’s intent to attract VIP and young customers.

Hyundai Card is the market leader, with over 350,000 members in the premium card segment (annual fees of 150,000 won or more) as of June this year.

The company has also seen its number of new members in their 20s and 30s grow by 20 percent, from 630,000 in 2021 to 760,000 in 2023, with over 170,000 of these members opting for premium cards.

Hanwha Galleria is also leveraging other retailers’ channels to expand its new business ventures.

A prime example is the premium burger chain Five Guys, which Hanwha operates through its subsidiary. Five Guys has already opened locations in The Hyundai Seoul in Yeouido and Shinsegae Department Store in Gangnam, with a fifth store set to open next month at Hyundai Department Store’s Pangyo branch.

The trend of introducing intellectual property (IP) through other retail channels is also on the rise.

In June, Hyundai Department Store launched products featuring its mascot, Heendy, in collaboration with the convenience store chain CU.

A variety of products, including Heendy and the Jelly Seed Group, are now available across CU’s nationwide network.

Meanwhile, Lotte Homeshopping Co. has partnered with CJ Foodville Co. to showcase a large-scale BELLYGOM exhibition at Namsan Seoul Tower.

BELLYGOM, Lotte Homeshopping’s popular character with 1.7 million social media followers, is the star of the event, where visitors can purchase over 60 types of BELLYGOM merchandise until September 1.

In the e-commerce sector, similar collaborations are emerging.

Recently, Gmarket announced that it would integrate its membership benefits from the Shinsegae Universe Club into SK telecom’s subscription service, T Universe.

Through this partnership, Gmarket plans to offer a new subscription product that adds various perks, including online video streaming, dining, and café discounts, to T Universe’s offerings.