Retail in Korea #02: IFC Mall – Unveiling Success Underground

Welcome to Retail in Korea, the newsletter that provides valuable insights into the ever-evolving Korean retail landscape. From emerging trends to ecommerce and branding, this newsletter aims to be a go-to source for English-language content on the subject. While I may not claim expertise, I aspire to be a window for foreigners seeking insights into this vibrant industry. In this edition, we turn our attention to the IFC Mall, unraveling its unique offerings and exploring its impact on the Korean retail scene.

In my first edition of this newsletter, I talked about The Hyundai, a reference for retail in the capital city of Seoul. Whenever someone visits Seoul, I take them there because in addition to everything I mentioned in the last post, that visit helps explain several points about Korean #retail and the subculture that surrounds it, including the brands present and the consumer trends.

Just a few meters away from the department store is #IFCMall, a 3-story shopping center located in the basement of the Seoul International Finance Center, comprised of three tall office buildings and the Conrad hotel. This place means a lot to me, and I am somewhat emotionally attached to it because I was fortunate enough to work as a Sales Assistant at the MANGO store there for 5 months, and I have great memories of that time ❤️

Despite being underground, you don't feel confined as there are several generous sources of natural light, along with good artificial lighting. The hallways are spacious, and the design is modern, creating a pleasant #shoppingexperience. The ground floor is mainly dedicated to restaurants and cinemas, while the other two floors house internationally renowned brands, local designer boutiques, lifestyle shops, and various services/entertainment options.

The construction of The Hyundai began in 2007 but was halted for a long time until it resumed in 2017 and opened in early 2021. IFC Mall opened in 2012, so many people wondered what would happen when #TheHyundai opened, as it would become a mall with outdated facilities, an incomplete brand mix, and an aging image.

After two years of coexistence, the results have surprised everyone, including me, who predicted a "slow death" for the mall: sales in 2022 increased by 60% compared to the previous year and by 30% compared to 2019, setting a record in its history 💥🔝

I have been thinking about the reasons behind this increase, and here are some considerations on how IFC Mall has differentiated itself from future competition, along with other impressions of the mall:

1. #Preparation: IFC Mall managers have had 9 years to prepare, and now I understand that they didn't waste that time. Gradually, they have been renovating the facilities, including all the bathrooms, as well as creating new corridors that connect to a tunnel leading to the subway station. The lighting in several areas has also been updated.

2. #BrandMix: They have managed to attract good stores and maintain the ones that were top performers, preventing them from moving to The Hyundai. Whether they stayed voluntarily or due to revised terms, I'm not sure. Examples of stores that have entered in recent years include Apple Store, Balaan, Dyson, and Z Universe, in addition to remodeling several existing stores (ZARA SA, Massimo Dutti, Nike, etc.). IFC features brands that generate a lot of foot traffic and are not found in The Hyundai, with Zara, UNIQLO, COS, and #Muji being notable.

3. #Location: I'm also one of those who believe that location is crucial in retail, and in this regard, IFC Mall has the upper hand as it is closer to the #Youido station compared to its rival. Moreover, to reach The Hyundai, one has to pass through IFC. The B line of the GTX, which will diagonally cross the entire metropolitan area, will pass through that station in the future. Additionally, IFC Mall is located in front of a major bus stop, making it a hub in the area.

4. #GastronomicExperience: The efforts made to attract and maintain good restaurants and cafes are noticeable, ranging from fine dining to fast food and food courts. Notable establishments include Jumbo Seafood, Thunder Rolls, and Lenwich. Knotted deserves a special mention, as there always seems to be a line whenever I visit. Furthermore, they haven't concentrated all the food stalls in one area; instead, you can find them throughout the mall. The ongoing effort to renovate the facilities is evident, as the food court is currently undergoing renewal. I'm very curious to see the final result.

5. #MZGeneration: These new stores and restaurants have in common that their primary target audience is the MZ generation. And they are succeeding, as I have noticed more young people during my recent visits. They have made IFC Mall a "cool" place to go 😎

6. #Synergy: Many people from Seoul and the surrounding areas come to visit The Hyundai, and while they're in the area, they take the opportunity to visit IFC Mall. This synergy has turned Youido into a premium retail area. Additionally, long queues for dining and high food prices have encouraged visitors to come to IFC Mall, where they have a greater variety of flavors and prices (from McDonald's to premium steak, and everything in between). And once they are there, they stay and make purchases.

7. #Events and #Art: Taking advantage of the closure of several venues due to COVID, they opened an art gallery (MPX Gallery), clearly following the footsteps of recent department stores. Additionally, all kinds of events take place in the mall, lasting for days or even weeks. They invest money and time, creating well-executed and photogenic decorations.

8. #Leisure: IFC Mall has dedicated part of its space to areas where visitors can rest and spend time, such as the 9 CGV cinemas (the only ones in the area) or the spacious YP Books Store, which is finally being renovated and adapted to the present moment.

9. #ConsumerFocus: This is evident in many aspects, such as allowing pets (until recently, there was even a dog grooming and daycare facility), providing various tables/benches for resting, closing the mall an hour and a half later than The Hyundai, and being kids-friendly, with a kids' café where children can have fun while their parents shop.

10. #Internationalization: The mall features highly international brands, and it is one of the places where they usually open when they enter the Korean market. For instance, Apple Store opened its second store in the country there.

However, IFC Mall is not a place for everyone. H&M didn't succeed and had to leave (but its sister brands COS and &OtherStories are still there, with their stores full of people). Under Armour and SEPHORA also closed shortly after opening. And the list of early departures continues. Before entering IFC, several factors need to be considered, such as the cost, the type of customers who visit, and the competition.

The fact that sales have increased by 60% makes me think. Surely, some stores have increased their sales by over 100%, while others may have struggled to maintain the sales levels of previous years. This means that when their contracts end, they will be asked to leave, making way for new brands to attract more people.

In summary, I believe that IFC Mall has been undergoing a modernization process for several years, attracting good brands with added value for young people and gradually differentiating itself from The Hyundai. The emergence of a competitor in the area has motivated IFC Mall to step up its game and increase the quality of its services and products, making Youido a must-visit retail destination in Korea. While Myeongdong and Gangnam shine in outdoor retail, Youido has positioned itself as the unrivaled best indoor location.

If you think I missed something or would like to share your opinion, I look forward to reading your comments 😊