K-kicks: Foreign tourists flock to Seoul shoe stores for deals and rare releases
Tax refunds, competitive prices and limited-edition sneakers at shops like Musinsa Kicks and ABC Mart are driving a surge in footwear purchases by visitors across Korea.
Customers shop in an ABC Mart store in Gangnam District, southern Seoul, on Aug. 21.KIM MIN-YOUNG
The main driver behind Feng Ziaoliang’s trip to Korea was simple: shoes. The 25-year-old tourist from China was darting from shelf to shelf at a multi-brand shoe store in the industrially hip Seoungsu-dong neighborhood of eastern Seoul, her eyes lighting up as she scanned rows of sneakers.
On Friday afternoon, dozens of customers crowded the Musinsa Kicks store, with foreign shoppers making up a conspicuous share of the crowd alongside Koreans.
“I was looking for some Air Max shoes,” said Feng, holding up two pairs of Nikes as she chatted with a friend. “Especially with the tax refunds, I see no reason why I shouldn’t buy one here.”
Retailers like Musinsa and Japanese chain ABC Mart are offering bounty tax refunds and discounts for customers of specific airlines to attract foreign shoppers amid record-high tourist arrivals this year.
Nike Air Max Bia sneakers were selling for $95 and 509 yuan ($75.70) on Nike's U.S. and Chinese sites, respectively, as of Tuesday.
The same sneakers were 59,000 won ($42.60) at an ABC Mart on Friday.
Adidas Samba Jane sneakers — listed at 799 Hong Kong dollars ($101.94) and $100 on the Hong Kong and U.S. sites, respectively — were just 118,990 won ($85.90) at Musinsa Kicks on Friday.
On top of that, Musinsa Kicks offers an immediate tax refund on purchases over 15,000 won ($10.8), plus a discount for Air China and Shenzhen Airlines passengers.
The three-floor store, opened in January, passed one million visitors in early August. Foreign customers' share of transactions rose from the 40 percent range in January to 70 percent in July. Cumulative sales made by foreigners stand at 61 percent in Hongdae and 69 percent in Seongsu District, eastern Seoul, two districts known to be popular with tourists.
Customers shop at a Musinsa Kicks store in Seongsu District, eastern Seoul, on Aug. 21.KIM MIN-YOUNG
What they buy looks much like what Koreans buy. “There is no clear difference in the brands or products foreign and Korean customers purchase,” a Musinsa spokesperson said. “Sneakers and running shoes from global sports brands like Salomon, Nike, Adidas and Asics are strongly preferred, and shoes and sandals from Korean designer labels are getting a good response.”
"The two groups spend at similar rates," an industry source said, typically buying one or two pairs at a time at 100,000 to 200,000 won per item.
The draw is what is on the shelves rather than what it costs. Differentiated brand and product selection, such as new releases and limited editions, is also a factor.
At Shoopen, a Korean fast-fashion shoe brand owned by E-Land Group, 87 percent of those who bought a pair of the brand's two-buckle Mary Jane sneakers between July 24 and Aug. 20 at its Hongdae store last month were foreign visitors.
Customers exit an ABC Mart store in Mapo District, western Seoul, on Aug. 21.KIM MIN-YOUNG
Shoopen, in Hongdae since 2014, sits at the accessible end, with foreign customers concentrating on casual shoes made by the brand itself, priced between 30,000 and 60,000 won. The store chain sells its own brand shoes, rather than selling Nikes or Adidas like Musinsa Kicks.
Mark Schmidt, 23, an American, was there for the clogs on Friday. “I copped a suede and a brown one,” he said. “One was 31, and the other was 32 percent off. I actually think so many of them were off,” he added with a laugh.
“Foreign customers buy a higher share of products with a point of interest in the material or design than of basic sneakers,” a Shoopen spokesperson said. Korean shoppers, the company said, tend to favor comfort and practicality.
They also buy more at once. Between Aug. 7 and Aug. 20, foreign customers spent about 46 percent more per transaction than Korean ones, the company said, picking up gifts along with socks and keyrings, while Koreans mostly bought the single pair they came for.
“At stores with a high share of foreign customers, we build the display around what they respond to and put those products in the main zones,” the spokesperson said.
A foreigner discount sign placed in an ABC Mart store in Mapo District, western Seoul, on Aug. 21KIM MIN-YOUNG
At ABC Mart, the Japanese chain with stores across Korea, foreign sales rose about 40 percent in the first half of the year. Chinese shoppers led, followed by Taiwanese, Japanese, Singaporean and Filipino customers.
“We see price competitiveness and trust in authenticity as two of the main factors,” an ABC Mart spokesperson said. “Some sports brand products are priced more competitively here than in neighboring countries, and with the tax refund, that creates a price advantage.”
Preferences vary too much by nationality and trip purpose to generalize, though visitors tend toward well-known sports and casual labels and shoes they can wear daily, according to ABC Mart. Demand has widened to fashion-driven styles such as platforms, and some buy shoes carrying Seoul or Korea graphics as souvenirs.
The spending is spreading beyond the usual districts. Once concentrated in Myeongdong and Dongdaemun, ABC Mart's foreign revenue climbed more than 78 percent in Ulsan in the first half of the year on year, 58 percent in Daegu and 50 percent near Konkuk University. Gangneung’s shop recorded its first foreign sales.
