Lotte Co., Ltd. is a multinational food, chemicals and shops, which is the eighth largest conglomerate in Korea companies from South. Their duty free division has entered Indonesia in 2012, directed by Yoon Hyun Cheol, who worked for Lotte for 20 years in various departments, including goods, human resources, logistics, and strategy projects. For the past three years, Mr. Yoon was running Lotte Duty Free Indonesia in Jakarta. Returning 3535000000 € in 2014, Lotte Duty Free is a major competitor in the world market sales to travel retail.
Why Lotte Indonesia found such an interesting market to enter?
Indonesia has great potential and resources, great cultural diversity so beautiful population and a land rich in natural resources. The Indonesian market is very strong, especially Jakarta, because it has a large population with a high purchasing power and it is the center of commercial activity. Indonesians are always follow the world trends in fashion, beauty, and food. Indonesia has much interest in Korean culture, and is pleased to learn more about Korean goods and services.
How would you describe the business relationship in Korea Indonesia?
I think we have three correlations. The first is the government, which has built a great cooperation and diplomatic communication. Secondly, there is the industry relations; Korea and Indonesia have always had good cooperation in the industry that has contributed to the growth of Indonesia. And the third is personal relationships - we have worked to improve the quality of human resources through exchanges between students and Korean and Indonesian workers. The proof is that Koreans want to come to Indonesia to see the culture and study, and many Indonesians go to Korea to learn Korean culture and study, too.
How many stores do you have today in Indonesia?
Lotte Duty Free has entered Indonesia in January 2012 with a meter store 880 square to Soekarno-Hatta International Airport Terminal 2, followed by the opening of its first shop duty -free in central Jakarta, Lotte shopping Avenue, which covers 5,500 square meters.
What is your domestic duty-free store offers buyers?
We started in 1980 with the first store Lotte Duty Free Korea, and we have since opened stores in Russia, Singapore, Japan, Guam, and Indonesia. For Indonesians, the free internal tax is the right place to find beautiful treats to bring to family or friends abroad, while experiencing a new concept of duty-free shopping in a mall without restriction of time or have to worry about missing flights.
What is the story behind the founding of Lotte Duty Free?
The first duty free shop operated in 1946 in a harbor in Iceland, while the modern concept of a duty-free airport began in 1959 in France to commit more import-export activity, as well as giving more value to foreign money by the tourism industry.
In Korea itself, stores that sell imported goods opened in 1964. It started with only government enterprises, and in the 1980s, private companies such as Lotte made a breakthrough in this company to give more value to foreign money while providing consistent contributions to the tourism industry.
At first it was quite a struggle to open a duty-free shop because it is difficult to obtain a license from the government, which have strict examinations and will only give a license to the best company. Today, duty free is a popular company with a competitive market.
How is shopping mechanism to Lotte Duty Free shopping Avenue Lotte?
Make sure to bring your passport and plane ticket before visiting the store. Choose your articles, take advantage of promotions and save up to 20 percent. The customer will receive a bill of exchange thereafter; Please keep and show to pick up the goods at Soekarno-Hatta Airport Lotte Duty Free in Terminal 2 before departure.
What is your company's mission?
Wherever you go, we'll be there. That is our goal: to become the leading luxury outlet shopping destination for travelers worldwide. We appreciate the unstoppable services to meet the Lotte customers worldwide.
As Director President, representing the majority of your workload?
The most important thing in management is communicating with colleagues. Whenever I have the chance, I would share with my staff so they know easily what we have to do together and what direction we will go. Also, I encourage them to operational management and the means to achieve its goals, strengthening synergies in all departments, as well as the manufacture of Lotte Duty Free best place to work.
What are the challenges you face in your industry?
Other duty free shops and tax and reimbursement. Also other stores that offer competitive prices and discounts and the preference of local Indonesians to go shopping in the duty-free shopping abroad.
Have you noticed a change in how people shop?
Now people are looking for the easiest and fastest to the shop. That's why online businesses are growing very fast. In Indonesia, we can not compete, but we have our strong advantage in providing a different kind of shopping experience. We will also build a strong relationship with customers at ease and satisfied at the store.
What is the main point that buyers purchase in your store?
We offer the best selection of alcoholic drinks and tobacco also quality wines from Europe, Africa, America and Australia. But since we have an allocation to customers for alcohol, the most sold items are cosmetics and perfumes. Some of the products we sell are not available in regular retail stores, for example, we are the only store to wear Chanel duty-free cosmetics in Indonesia.
How are your two managed stores?
We have the same direction for both our shops from the airport and the city center. The only difference is that our shop downtown is located in a "demarcated area" of duty-free products, allowing customers to take their home property purchased before leaving for the airport.
Can you tell us more about the achievements of Lotte Duty Free?
In July 2015, the Moodie Report, famous worldwide new retail travel, Lotte Duty Free classified as Top 3 Global Duty Free Shops with a turnover of € 3.535 billion in 2014.
the record consists of sales of Korea, Jakarta, Singapore, Guam, and stores in Japan, and sales online. This year we will expand more, opening stores in Japan and Bangkok.
Do you have special promotions on now?
At the end of March, we plan to have another night Sales Promotion which offers up to 80 percent off.
Do you have any special events planned?
We have our regular exposure in our store named Gallery, Lotte Duty Free as an appreciation of art and photography local talent. We also have annual meetings to our VIP members.
What are you most proud of achieving in your career in retail sales so far?
When our center Jakarta store opened, our Cosmetics Zone won the "Best New Store 2013" price of Duty Free News International. Lotte Duty Free reached twice the market share of only 20 percent of the area of retail at Jakarta airport.
We contribute to society through a social book donation program in celebration of World Book Day, April 23, inviting everyone to donate their book and drop it by our shops. Books are distributed to children in various parts of Indonesia. We strive to have an active social responsibility program in the future.
Although there will always be competitors, in 5-10 years Lotte Duty Free is one of the largest retail travel the world. I tried to lead new regulations to develop Lotte Duty Free as the best company and workplace for employees. I believe I can help to support growth and to increase the economic sector of Indonesia.
Thank you, Mr. Yoon. For more information, please visit the Lotte Duty Free website.