Konnect Ecosystem Series 01
Hello everyone!
Global Membership Konnect is the HUB that links the worlds of Web 2.0 and Web 3.0.
Incorporating a ten-year foundation in the duty-free industry, the Konnect project was initiated in 2021 to introduce the first Web3.0 Membership in 2023. This innovative membership aims to integrate Web2.0 features with Web3.0 capabilities to provide unprecedented real-world advantages and increased rewards for users. By 2024, Konnect Membership includes over 120 exclusive deals, encompassing services and perks in areas such as shopping, hotels, medical, beauty, and beyond.
What benefits can be connected through Konnect membership with multiple brands, and what type of ecosystem is Konnect looking to establish for its Web3.0 membership? We are creating the Konnect Ecosystem Series to address frequently asked questions from users and provide insight into the future of Konnect, exploring the origins of Konnect and the ecosystem we are developing.
Today, we’re going to check out the duty-free marketplace that Konnect is built on in the first of a series.
DUTY-FREE MARKET
What is your knowledge regarding the duty-free market?
The duty-free market encompasses shops in each country that sell goods without taxing domestic and foreign customers. The duty-free market in Korea was established in 1979 with the goal of generating revenue from foreign currency and boosting tourism through the attraction of international visitors, with duty-free shops worldwide engaging in intense competition to establish a global market with annual sales reaching 100 trillion won.
What is the scale of Korea’s duty-free market?
South Korea stands out as the top country globally, as shown in the table above. South Korea’s annual duty-free sales amounted to approximately 25 trillion won in the global market totaling 100 trillion won, making up around 25% of the total sales (pre-COVID, 2021).
Korea’s conglomerate duty-free retailers, including Lotte Duty Free (№3), Shilla Duty Free (№4), Shinsegae Duty Free (№7), and Hyundai Duty Free (№10), play a significant role in driving this market share, with four of the country’s top 10 duty-free retailers also ranking among the top 10 global duty-free retailers.
Konnect has stood out in the Korean duty-free market, known for its high sales volume, by excelling in business related to domestic duty-free stores and expanding its physical infrastructures through duty-free distribution and inbound travel services. The goal of the Konnect project is to establish a new ecosystem that connects the infrastructure with Web3.0.
In conclusion
Today, we have presented the ‘Global and Korean duty-free market’, which serves as the primary basis of the Konnect project. In the following part, we will explore how Korea rose to become the top duty-free market and how Konnect is enhancing its physical infrastructure in alignment with the duty-free sector.
Thank you.
