dkl&COMPANY at The Social Hotelier
Earlier this year I had the honor to chat with Sam-Erik Ruttmann on his The Social Hotelier podcast – and it was an amazing chat as Sam-Erik has very close ties to Korea, both professionally and personally. We’ve discussed all of my favorite topics – art, luxury, but this time we’ve also tried to understand what hospitality could learn from the immersive experiences Korean retail is excelling at these days.
If you’d like to give it a listen, I invite you to check out The Social Hotelier on Apple Podcasts, Audible, Spotify, or Youtube. Below is a summary of our discussion –?with some extras that didn’t make it into the podcast due to time constraints. I hope you enjoy!
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Sam-Erik: So let's get started. First, I think, for our audience to get some background, can you tell me a bit about your professional experience and why you dkl & Company?
DKL: I founded dkl & COMPANY to connect my expertise in doing business development projects and directing Korean market initiatives in the digital commerce and consumer goods sectors with my background in (and love for) culture and art. I am also currently attending the Executive Master in Luxury Management program at SDA Bocconi to further expand my knowledge of the luxury industry as this is where I feel the two meet the most often.
ON INNOVATION IN THE KOREAN MARKET
Sam-Erik: Korea is a highly saturated market, especially with half of the population concentrated in the broader Seoul capital area. How does this urban density influence the need for innovation in luxury and art experiences?
DKL: That’s an excellent question, and it really captures the core of the discussion. Urban density is a key factor that distinguishes this market from most other luxury hotspots. While it’s not the only element, it works in synergy with other aspects, such as a deep curiosity for the West, a strong familiarity with luxury brands – including even the most niche ones – and widespread access to the latest smartphone models. Thanks to various incentives aimed at encouraging Korean consumers to upgrade their devices regularly, having the newest tech is almost a given here. Combine that with an exceptionally stable internet infrastructure and an insatiable appetite for culture, and you have a unique audience perfectly primed to serve as a test bed for innovation.
Living in a city where dozens of brand activations occur monthly, alongside being home to a global art hub and captivating content that fascinates the world, naturally sets the bar for expectations sky-high.
Sam-Erik: You’ve mentioned that innovation doesn’t have to be loud but should remain on-brand. Can you share examples of brands that have successfully balanced subtlety with innovation in the Korean luxury market?
DKL: There’s often this perception that technology is all about having the newest and flashiest innovations, but it’s really about the why—the purpose behind it. What are you trying to achieve, and how can it support the extension of your brand?
While this isn’t strictly Korea-focused, a great example comes from 香奈儿 ’s activation in China for their Coco Crush collection. They created an incredible pop-up experience that included two gaming machines featuring a Coco Crush version of memory card and Pac-Man. Chanel isn’t typically known for jumping on trends like Web 3.0, so this playful yet on-brand approach to engaging a younger audience felt fresh and exciting without clashing with their established image.
Another standout element of this activation was its omnichannel integration. Visitors could book appointments for the pop-up, and staff would check them in upon arrival. A few days later, I received a follow-up message via Chanel’s KakaoTalk account (Korea’s super-app owned by Kakao Corp , an equivalent to the Chinese WeChat), asking about my experience and inviting me to explore the collection on the KakaoTalk Gift store.
The brand isn’t big on ecommerce and since Coco Crush is their fine jewelry line, you weren’t able to purchase the pieces directly in app, but there was an option to call a Chanel store to inquire about the product. I thought this was a brilliant way to connect offline and online touchpoints, enriching their CRM system while engaging customers through a platform tailored to local market dynamics. It demonstrated a thoughtful understanding of their audience and a seamless way to build stronger relationships.
Sam-Erik:How do Korean consumers respond to immersive customer experiences compared to traditional luxury retail settings?
DKL: As I mentioned earlier, innovation doesn’t need to be loud, but simply maintaining the status quo in today’s competitive landscape is a fast track to falling behind. Inaction often speaks louder than experimentation, especially when you have a willing audience ready to engage with new strategies. Even small, local brands are embracing immersive retail experiences, proving that creativity often outweighs budget.
One great example is a brand I’ve written about before, RAIVE. They excel at crafting engaging spaces in their Seoul Seongsu store, located in a trendy area popular with young Koreans. Despite working within modest constraints, they use simple yet effective elements like large mirrors, potted flowers, and small screens that resemble framed pictures due to their subtle design.
RAIVE demonstrates perfectly that creating immersive experiences is less about having a massive budget and more about the mindset and willingness to innovate. It’s a reminder that impactful retail experiences can come from thoughtful, intentional design rather than extravagant investments.
Sam-Erik:With constant competition in Korea, how can luxury brands stay innovative while remaining true to their core identity?
DKL: Never rest on your laurels—keep checking in with your audience. But as you do, stay true to who you are at your core and what you want to achieve. Localize, including how you integrate technology, but always remember why you're doing it and whom you’re trying to reach. You’re not speaking to everyone; you’re addressing a specific persona with a distinct lifestyle or set of values.
Ask yourself: Would this strategy still make sense if it weren’t the latest trend? It’s similar to shopping a sale—would you have bought the item at full price, or are you just drawn to the deal, chasing a quick win? Staying intentional and aligned with your goals is key to creating lasting impact rather than just momentary buzz.
LEARNINGS FROM THE KOREAN RETAIL SCENE FOR HOSPITALITY
Sam-Erik: What unique aspects of the Korean retail scene can be translated into creating immersive experiences in the hospitality industry?
DKL: In general, retail enjoys much more freedom than the hospitality industry due to the scale of investment and resources hospitality requires. Hospitality formats often feel more rigid, but they also come with a unique advantage: significantly more space to work with. Unlike retail brands, which frequently have to rent temporary spaces for activations, hospitality venues can creatively utilize their existing environments to craft experiences.
The relationship between retail and art has become particularly intriguing. For artists, collaborating with retail brands opens doors to new audiences, including those who might find traditional galleries intimidating. Hospitality could take cues from this dynamic and explore art beyond the usual paintings on walls. Art could become an immersive element, woven into the experience – a passage at the entrance that plays with light and color, or a unique piece of furniture in the lobby. These don’t need to be grand gestures; small, intentional touches can leave a lasting impact.
The key, as always, is to start with why. When selecting an artist, consider the connection between their work and your brand values, the medium, and the environment. Authenticity must be at the heart of every decision, ensuring that the collaboration feels meaningful and deeply rooted in purpose.
Sam-Erik: Korean retail is known for its high-tech integration and customer engagement strategies. How can these be adapted for hospitality services to enhance customer satisfaction?
DKL: Connect the data—don’t let it exist in silos—and recognize the influence of Korean media giants like Kakao and Naver (owned by NHN集团 ). Consider this: 谷歌 e holds a 34.74% share of the search engine market in Korea, while Naver – the domestic engine –?dominates with 56.62%. Similarly, while Instagram is emerging as a powerful communication tool, KakaoTalk offers an entire ecosystem that’s deeply integrated into daily life.
Pay close attention to domestic brands—they’re your best guide. They understand the baseline expectations of the local clientele and can provide valuable insights to inform your market strategy. Many global giants have entered Korea only to exit within a few years because they assumed their successful strategies elsewhere would work here too. They didn’t.
Koreans gravitate toward specific platforms and channels, and if you’re not present on these, you risk missing critical touchpoints. Tailor your approach to align with the preferences and habits of this market—it’s the difference between thriving and merely surviving.
Sam-Erik: In what ways has Korea’s retail sector influenced luxury hotel experiences, particularly in terms of personalization and customer engagement?
DKL: Korean retail has excelled at tapping into the demand for culture-focused experiences, setting a standard that even non-Korean brands have come to recognize. Today, it’s almost expected for international brands to localize their offerings and incorporate elements of Korean culture into the stories they build here.
This cultural integration has also influenced expectations in the hospitality sector. Visitors to Korea often anticipate a fully immersive experience—not just in the places they explore or the food they eat, but also in their accommodations. Hotels are expected to reflect Korean culture in their interiors, amenities, and even the cosmetics provided in rooms.
Western luxury brands are appealing, but they’re accessible globally. Visitors to Korea often question why they would use Western skincare products when they’re in the home of K-beauty. This consideration is equally important for both international and domestic players, as it reflects an understanding of what makes the Korean experience so unique and desirable.
Sam-Erik: What lessons can global hospitality brands learn from Korean retail when catering to both domestic and international visitors in Korea?
DKL: Stay true to your brand’s DNA, but invite local culture into your space. Collaborate with Korean artists—this doesn’t have to be anything grand. Korea is home to incredible talent, and partnerships could involve something as simple as custom furniture, ceramic objects, or even landscape design.
When you show an appreciation for Korean culture, Koreans will, in turn, appreciate your brand. Additionally, this approach resonates with visitors to Korea, who often come seeking authentic cultural experiences. By blending your identity with local elements, you create a unique offering that appeals to both local audiences and international guests.
Sam-Erik: With the rise of digital and physical retail convergence in Korea, what strategies can the hospitality industry adopt to create seamless, immersive experiences for their guests?
DKL: Understand how you can connect online to offline, even for the smaller things. Make sure you leverage the most used digital channels for operations and then connect the dots during the in-person encounter. Koreans are used to allowing access to their data – much more willing to do so than people from Western cultures, so make sure you show your appreciation by acting on it to understand your customers. That’s just how the ecosystem is set up, so you can really personalize offers much more easily than in other places.
Sam-Erik: I have few more questions for you before we wrap up. Korean pop culture is a global sensation! Do you have a favorite K-pop artist or drama that you think perfectly captures the essence of Korean luxury and innovation?
DKL: I’m actually a big fan of Korean noir cinema, so I’ll leave the K-drama recommendations to other experts—though Crash Landing on You on Netflix is probably a standout example.
As for K-pop, I have to stick with G-Dragon because, for me, that’s where it all started. Him becoming Chanel’s global ambassador in 2016 was groundbreaking, the first of its kind. Plus, his music holds a special place in my heart—when I first arrived in Korea in 2008, it was his music that played everywhere.
I think G-Dragon has an incredible sense of self, and he plays with that identity masterfully. The music video for his single Crayon never fails to lift my mood and perfectly illustrates why the collaboration between luxury and artists works so well.
Sam-Erik: What’s the most memorable or surprising customer experience you’ve come across in Korea—something that made you think, “Only in Korea!”?
DKL: Maybe not luxury, but the fashion brand Ader Error – their retail spaces are experiences first and stores second, it’s like nothing I’ve ever witnessed before. Their Seongsu store has a spaceship set in water, just next to another room where an astronaut-shaped figure is suspended from the ceiling. Their Apgujeong store has a little cosmic cathedral scene with miniature figures built in between the space between the floor and the stairs. They’re on another level.
Sam-Erik: When you’re not immersed in the world of luxury and innovation, where’s your go-to spot in Seoul to unwind and get inspired?
DKL: The Hongje Stream with the waterfall – I live nearby and feel absolutely blessed to have access to such rich nature while still living 20 minutes away from the main palace. Soul is extremely fast-paced and there’s nothing like trees and water to help my mind rest.
Sam-Erik: Dominika, I appreciate you joining today's episode and thanks for all the fantastic insights!
DKL: It’s been an honor and delight to speak with you, Sam-Erik. I hope your audience enjoyed it as much as I did. Thank you!
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Hope you’ve enjoyed our chat!
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3 个月Congratulations on the podcast!
Chinese luxury and beauty markets expert and public speaker Managing Director, China Consulting at Digital Luxury Group
3 个月Awesome Dominika Kustosz-Lee!!! Can’t wait to take a moment and listen to it!
Project Manager | AI Project Manager | AI Enthusiast | Digital Transformation
3 个月It’s an amazing conversation! The blend of #art, #luxury, and the innovative approach of Korean retail to #hospitality are truly captivating topics. I’ve listened to the episode and was impressed by the depth and unique insights. Highly recommend checking it out – it’s definitely worth your time!
International Hotel Expert - Director of Global Hospitality Development at Studio Puisto Architects
3 个月Thank you Dominika Kustosz-Lee. I enjoyed the hour together. One of the memorable moments is without the doubt your tips of places you like to visit. Even as a regular visitor to #seoul I did not know the interesting places, you talked about. Check out the stories from Seongsu.??
https://www.dhirubhai.net/posts/sam-erik_kpop-korealuxury-visitkorea-activity-7258372261827518465-nuut