SEOUL, Dec. 25 (Korea Bizwire) –After a temporary setback due to the COVID-19 pandemic, South Korea’s department store culture centers, which have flourished for 40 years since the mid-1980s, are witnessing a resurgence in popularity.
The three major department store chains in South Korea – Lotte, Shinsegae, and Hyundai – are not only expanding their culture center classes but also evolving by developing premium content. According to the retail industry statistics released on December 24, the demand for these culture center courses has surged by over 40% this year.
Lotte, Shinsegae, and Hyundai department stores reported that the number of students enrolled in their culture center classes for the spring to fall terms this year increased by 45%, 42%, and 40% respectively, compared to last year.
During the height of the COVID-19 crisis, the culture centers closed for over three months, and some courses were moved online. Now, all three department store chains operate culture centers in each of their outlets, offering between 400 and 1,300 classes per center.
The first department store culture center was established in 1984 by Dongbang Plaza (now Shinsegae Department Store), followed by Hyundai Department Store’s Apgujeong main branch in 1985, and Lotte Department Store’s first center in 1988 at its Jamsil branch.
Initially, these centers targeted middle-aged women with classes like singing, calligraphy, sewing, and crafts, serving both educational and social ‘salon’ functions.
“Aimed initially at providing educational and cultural benefits to customers and local residents, our culture centers have since evolved into ‘social clubs’ where customers form and engage in communities,” said a representative from Lotte Department Store’s culture center.
The culture centers gained popularity in the 1990s with the introduction of shuttle bus services by the department stores. Customers enjoyed a variety of humanities, arts, and computer courses at much lower costs compared to traditional academies, and often combined their learning with shopping and dining at the department stores.
Despite the discontinuation of shuttle bus services in 2001, the culture centers continued to thrive, thanks to improved public transportation and personal car ownership.
They attracted young couples with weekend classes for infants and toddlers and expanded weekday evening classes for working professionals following the implementation of the 52-hour workweek.
Department stores have dedicated teams, such as Culture Content or ESG teams, to manage these culture centers, operating under the Lifelong Education Act. “Our Culture Content team includes experts with 20 to 30 years of experience in various fields, including arts and culture,” a representative from Hyundai Department Store stated.
The culture centers offer classes based on lifestyle trends and customer demand, changing every spring, summer, autumn, and winter semester. They also bring in renowned instructors and develop unique courses.
Importantly, the culture centers are not merely revenue generators but are key in attracting customers, with a significant portion of each department store’s budget allocated to ‘culture marketing costs.’ The profits from these centers are mostly reinvested in facility upgrades.
The fees for culture center classes are relatively affordable compared to market rates, with dance and language courses (12 sessions) priced between 120,000 to 150,000 won, children’s cooking classes (four sessions) at 40,000 won, and one-day experiential classes around 10,000 won.
Department store culture centers feature popular classes such as play and learning courses for children and their mothers, foreign language, dance, and fitness classes. Humanities and classical music classes for adults, drawing and watercolor painting workshops, and wine courses also enjoy steady popularity.
Recently, the centers have focused on developing ‘premium content,’ such as high-end sports classes like golf or cooking with ingredients harvested directly from farms. Lotte Department Store has introduced a one-point golf swing class and a gourmet class featuring tea and whiskey.
Shinsegae Department Store offers golf pilates for golfers and gallery tours with curators, while Hyundai Department Store has launched lunchtime fitness classes and personalized makeup sessions.
“Based on premium content, we plan to continue expanding our classes in partnership with well-known educational brands and offer more personalized management,” said a representative from Shinsegae Department Store.
Lina Jang (linajang@koreabizwire.com)