Due to the THAAD problem in 2017, South Korean companies almost gave up marketing in China.

In March 2017, the Chinese government informally banned Chinese people from traveling to South Korea, causing severe damage to South Korean cosmetics companies, casinos, and duty-free shops.

However, with the ice breaking of China-South Korea relations, Korean brands are preparing for China's Double 11 big promotion, hoping to win back the hearts of consumers and obtain large sales.

China’s Singles’ Day Promotion is the world’s largest retail event. In 2009, Chinese e-commerce giant Alibaba launched the "Double 11" shopping carnival concept, single men and women celebrating their single lives on this day. On Double 11 in 2016, Alibaba set a sales record of $17.8 billion, more than the combined sales of "Black Friday" and "Cyber Monday" in the United States.

On Double 11 in 2017, Hanwha Galleria, the operator of South Korean duty-free shops, will provide 110,000 KRW in points to 111 members who clicked on banners on its Chinese website starting at 11 a.m. on November 11.

Doota Duty Free's online store in China will start at 11:11 a.m. every day and send 111,111 won points to 1111 customers until November 11.

Asiana Airlines will sell discounted air tickets from China to South Korea and other places on Alibaba’s travel platform Alitrip from November 11 to 15, and at Seoul’s Incheon Airport (Incheon Airport) A free airport lounge is provided for transit passengers.

Lotte Duty Free, the world's second-largest duty-free operator after Dufry (the world's largest duty-free operation), will also provide shopping points for consumers who have written a double 11 wish list on the website and received a response.

A senior staff member of Yiduta Duty Free Shop said: “Since the THAAD crisis, we have tried to expand our customer base to Southeast Asia and other places, but the purchasing power of customers in these regions is much lower than that of Chinese consumers. We hope that after the relationship is restored, sales can be restored. The level of the past few years."

Investors are also very excited. Since October 31, after the announcement of the relaxation of relations between China and South Korea, the shares of Lotte Shopping, the largest department store chain in South Korea, and Hotel Shilla, the operator of duty-free shops, have risen by 12% each. And 7%. During the same period, the Korean market composite stock index KS11 rose 2%.

The large-scale promotion of South Korean companies on Double 11 is in stark contrast to their silence during the stalemate in Sino-South Korean relations. During the Chinese Qixi Festival in August and the National Day in October, South Korean companies were silent.

"Beginning in April 2017, all (Korea) duty-free shops have reduced their marketing expenditures for Chinese customers. After all, under the travel ban, marketing has no meaning," said an executive at Hanwha Galleria.

In 2016, South Korea’s duty-free industry sales reached 12.3 trillion won, ranking first in the world. Before March 2017, the consumption of Chinese tourists accounted for approximately 50% to 60% of their income.

However, in the seven months from March to September 2017, the number of tourists from China to South Korea dropped by 61% compared to the same period last year. Lotte reported its first loss in 14 years, and the operating profit of The Shilla Duty Free also fell by more than 40% in the first half of 2017.

Duty-free shop operators understand that Singles’ Day cannot solve all problems because their online sales in China account for only a small part of their total revenue, but operators hope that once the travel ban is lifted, online sales will lay the foundation for their strong sales recovery .

A senior executive of Lotte Duty Free said: “After the travel ban is lifted, it is estimated that a recovery period of 3 to 6 months will be required. We look forward to that day very much.”