Hyundai Duty Free is expanding its duty-free zones at Incheon International Airport in a bid to capture the top spot in airport duty-free sales. The company aims to lift its annual sales at Incheon Airport to more than 1 trillion won.
Hyundai Duty Free said it began operating the DF2 zone (cosmetics and perfume, alcohol and tobacco) in Incheon Airport's Terminals 1 and 2 starting Monday. The DF2 zone spans 4,571 square meters and houses 287 brands, including Chanel and Dior. The operating period runs through June 2033, extendable to 2036.
With the addition, Hyundai Duty Free now operates three zones at Incheon Airport, adding DF2 to the existing DF5 (luxury) and DF7 (fashion) zones. That accounts for half of the airport's six duty-free zones. In particular, the company has become the only duty-free operator at Incheon Airport handling all categories, including luxury, fashion, cosmetics, and alcohol.
To capture luxury shopping demand, Hyundai Duty Free plans to strengthen its merchandising (MD) centered on global luxury beauty brands and ultra-high-priced, limited-edition items such as premium whisky and wine. The company also plans to put K-content, such as K-beauty, K-food, and K-culture, which draw strong interest from foreign tourists, at the forefront of its airport duty-free stores. It will set up a "K-Cosmetic Zone" in Terminal 2 (T2) to showcase about 40 trendy K-beauty brands, including Medicube and Torriden.
The DF2 operation is expected to extend the company's earnings growth. Sales at Incheon Airport alone are projected to exceed 1 trillion won annually. After achieving its first annual profit last year, seven years after launching the business in 2018, the company is also expected to post a profit in the first quarter of this year.
"Based on a profitability-focused store operation strategy for both airport and downtown stores, we will further advance our differentiated MD and marketing strategies," said Park Jang-seo, CEO of Hyundai Duty Free. "We will solidify a stable growth structure while leading duty-free shopping trends as a frontrunner in Korea's duty-free industry."
