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The glass door of Le plus Joaillerie, a jewelry shop in Seoul¡¯s affluent Cheongdamdong, is always locked, though the inside is brightly lit. When a curious customer knocks on the door, a manager in a designer suit comes out and politely tells them to go away unless they have an appointment.
Well-heeled Gangnam, the area south of the Han River, is seeing more of such snob appeal from savvy businesses. Instead of luring customers, they are more likely to turn them away, as if to say we don¡¯t need you. Surprisingly, it works. Le plus Joaillerie saw sales grow 3.5 times in the eight months since it opened. The key is that it takes advantage of customer¡¯s desire to get through that tightly locked door, of their natural curiosity and their desire to be part of the elect few.
Shopperholic sells imported clothes in Cheongdamdong and has been equally successful with its reservation system. Despite or because of the snobbery, it posts some W200 million (US$1=\949) in average monthly sales thanks to word of mouth. Cosmetics firm Amore Pacific introduced a differentiated marketing strategy to target rich customers in New York when it launched its premium brand. The result was an improved brand image and increased demand both at home and abroad.
Belle vue in Cheongdamdong is a members-only wine bar that goes the extra mile of deliberately leaving the table next to the one reserved by customers empty to give them more privacy, which helps it secure VIP customers. Some high-end spas reportedly take reservations only from customers they approve of even when they are not booked up.
Such ¡°demarketing¡± strategies, whereby businesses intentionally prevent customers from giving them their money, have long been effective in overseas markets - think nightclubs with a ¡°door policy¡± -- but have so far failed in Korea due to national sentiment. But as services improve and the Internet gives everyone access to almost everything, demarketing has begun to take effect. If the shops are only snobbish enough, the Internet and word of mouth will do all their advertising for them. Customers impressed with the service and their own ability to win access are sure to return.
At Le plus Joaillerie, the chosen few are seated in antique chairs and served rose tea in bone China. They can take their time shopping for expensive jewelry without having to worry about others. Customers at Shopperholic get one-on-one services without having to wait their turn. ¡°Designer boutiques in department stores in Paris control the number of customers so that only a few can get inside during their sales season, and the stricter the control, the more people line up to shop there. Once they get in, they find it really hard to leave without buying anything,¡± says Kim Eun-jung, a team leader with a PR agency. ¡°When shopkeepers don¡¯t treat their customers equally and serve only a few with quality service, it stokes a desire to be a valued customer who deserves such rare treatment.¡±
(englishnews@chosun.com )
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