Why is the Apple Store expanding in the Korean market?

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The increasing number of official Apple Stores in Korea: Why is Apple targeting the Korean market?

Apple announced that it will unveil its new 'iPhone 15' on September 12 (September 13 in Korean time).

With this announcement, domestic consumers are eagerly awaiting to experience the new product in Korea's Apple Stores. Today, let's talk about these 'Apple Stores'. One of the major initiatives Apple is aggressively pushing in Korea is the opening and expansion of 'Apple Stores'.

Apple Stores can be seen as the most advanced and modern luxury brand shops. In Korea, starting with its first store in Garosugil, Apple continues to open stores, and not only has it recently opened its 5th store in Gangnam, but there are also plans to successively open stores in Hongdae and Starfield Hanam.

Thanks to this, Apple is revitalizing the Korean retail employment sector by hiring across various age groups.

According to Bloomberg, Apple announced its plan to focus on expanding its stores in the Asia-Pacific region. Apple is known to open 15 new stores and renew or relocate 6 stores by 2027.

So, what's the reason behind Apple's offline store expansion strategy in the Korean market?

The Advantages of Apple's Offline Store?

First, Apple Stores are not just about sales but are spaces where customers can communicate with the brand, and experience its overall value and organizational culture.

These stores serve as a communication channel to convey the brand's values and organizational culture, strengthening the brand image through Apple's unique friendly and professional services. They also host various events and lectures with artists who use Apple devices for creative works, providing a direct platform for interaction.

Deep engagement with customers through direct encounters can enhance the company's favorability and play a significant role in improving services.

The rise in online sales indicates an increase in customer acquisition. Apple continues to attract and retain these customers by providing offline experiences like lectures and seminars.

Apple is known to prioritize a service mindset when dealing with store visitors, based on a clear retail guideline and thorough staff training. It's rumored that they prefer experience from luxury or premium service sectors in hiring for sales skills and attitude.

Engaging with customers helps identify their needs, which in turn aids product development. By allowing customers to experience the products firsthand and get ample information before purchasing, it also significantly increases product satisfaction.

In conclusion, beyond just a place to showcase and sell products, Apple Stores play a crucial role in enhancing brand image, fostering customer loyalty, and sharing culture and communication.

The Reason for a Full-fledged Approach to the Korean Market

Apple adopts a strategy of maximizing brand awareness and marketing effects by opening stores in commercial areas of major cities like Seoul.

Though Samsung dominates Korea's smartphone market, the presence of domestic Apple users preferring premium products has led to notable increases in sales of wearable products like Apple Watch and AirPods.

Interestingly, while iPhone's market share is lesser in Korea compared to Japan, which has almost 50% share, sales related to Apple wearables are higher in Korea. Even if iPhone sales lag behind, the average spending per person increases due to additional wearable purchases.

Moreover, as Samsung is heavily promoting its Galaxy Flip products targeting the younger generation, Apple is becoming more aggressive to retain its loyal young iPhone users in Korea.

Apple also collaborated with the trending K-pop idol ‘NewJins’ to shoot the music video of their new song ETA exclusively using iPhones, targeting the younger generation globally, leveraging K-POP's influence in the global music scene.

Furthermore, Apple introduced Apple Pay in partnership with Hyundai Card recently, aiming to induce more of the 2030 generation into the Apple ecosystem.

According to a recent survey by BeNulabs targeting 1,000 college students nationwide, 82% expressed their intention to use Apple Pay. 36% of Galaxy users said they would switch to an iPhone because of the Apple Pay service, while 98% of current iPhone users showed intention to repurchase.

Despite the growth in online sales, Apple continues to strategically open retail stores in Korea for various reasons.

Not just Apple, but the global luxury goods market also increasingly values the Korean market, emphasizing the importance of well-trained sales staff with excellent sales skills.

Through LBG, which consists of experts and trainers with extensive experience in the luxury industry from around the world, you can receive various insights and tailored professional training.

We hope to see Apple Stores thriving not just in Seoul but in other regions of Korea soon.

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