The Popularity of ‘K-Fragrances’ Attracting Foreign Tourists, Supported by K-Startup Solutions

At Sentica Hannam: Most Shoppers Are Foreign Tourists
Sales Rise Thanks to International Easy Payment and VAT Refunds

The Sentica Hannam branch, a fragrance store located on Itaewon-ro 54ga-gil in Yongsan-gu, Seoul. On September 4, foreign tourists of various nationalities who visited this store were able to directly experience a range of fragrance products arranged throughout the space, including perfumes, hand perfumes, hair mists, oils, and diffusers. According to a store representative, while offering highly sophisticated scents at more reasonable prices than overseas perfume brands, the popularity of Korean content is driving increased interest in Korean sensibilities, and as a result, more customers are seeking out K-perfumes.

What stood out in particular was the way customers paid after selecting their products. The payment terminal supports overseas easy payment methods, allowing foreign tourists to complete their purchases effortlessly by scanning a QR code with their smartphones. Additionally, when a customer’s passport was scanned using the terminal's built-in camera, a VAT refund benefit was provided immediately.

Interior of Sentica Hannam Store

The Sentica Hannam branch is an example of the popularity of K-perfumes made by domestic small and medium-sized businesses, underpinned by the technological capabilities of K-startups. Opened in May this year, it is the fourth store of the Sentica fragrance brand, created by the domestic company RAIN.T, which produces its own fragrances. RAIN.T, an SME based in Busan, currently operates four stores: two in Busan (Gwangalli and Jeonpo) and two in Seoul (Hannam and Sogyeok). In Seoul, the Hannam branch was followed by the opening of the Sogyeok branch. Jang Jiwun, Brand Team Leader at RAIN.T, stated, "The Hannam branch has a high proportion of foreign tourist visitors, and both visitors and sales from foreign customers continue to increase. Trust in K-beauty is naturally expanding beyond skincare and makeup to the realm of fragrance."

The popularity of K-perfumes is also evident in payment data. According to data from the integrated store management platform PayHere, sales revenue at perfume affiliate stores from January to July this year increased by 59.5% compared to the same period last year, and by 150.1% compared to two years ago.

At Centica Hannam Branch, overseas easy payment (WeChat Pay) is being processed through the Payhere terminal. Payhere

It is domestic startup PayHere’s solution that plays a role in lowering payment barriers for foreign tourists visiting the stores. All Sentica branches use PayHere’s services. What foreigners find particularly convenient is the easy payment method. PayHere supports Alipay, WeChat Pay, and UnionPay. Team Leader Jang stated, "Overseas easy payment methods effectively lower the payment threshold, as customers can make spontaneous purchase decisions without worrying about currency exchange or card transaction fees. The more language barriers customers face, the higher their trust and willingness to revisit the store when they can use a familiar payment UI." At the Sentica Hannam branch, more than 50% of payments are made through easy payment methods such as Alipay and WeChat Pay. PayHere’s overall payment data showed that in the first half of this year, Alipay and WeChat Pay transaction amounts increased by 135.1% and 228.9%, respectively, compared to the same period last year.

The tax refund service (TRS) is also receiving a positive response. With this service, it takes about 10 seconds from passport scanning to completing the refund process. Passport information is automatically entered, and VAT is deducted from the payment amount. The store explained that this discount effect often leads to additional purchases. A PayHere representative stated, "Inquiries about the tax refund service are coming in, especially from stores with increased tourist demand. We will continue to enhance various features to capture more sales from foreign customers."

This content was produced with the assistance of AI translation services.