'Sex toys' become Shinsegae's new cash cow

An adult products section at Pierrot Shopping in Starfield COEX in Seoul. / Courtesy of E-mart

By Park Jae-hyuk
Sex toys, which have long been regarded as taboo in the nation's business circles, have emerged as a new source of income for one of the country's largest conglomerates, Shinsegae Group, according to the retail giant, Wednesday.
In addition to Shinsegae's Pierrot Shopping that has sold adult products since its opening in June, the conglomerate's L'Escape Hotel has also sold "masturbators" to its guests since its opening in July.
Shinsegae Chosun Hotel, the operator of L'Escape, said Tenga Korea, the local subsidiary of the Japanese masturbator maker, has supplied its EGG Series masturbators for men and Iroha vibrators for women to the boutique hotel, after packaging the products in boxes that read "love kit."
Industry officials said the hotel's service is unprecedented in Korea, although some hotels in Europe are equipped with such products.
Shinsegae Chosun Hotel said the sex toys are parts of 200 retail goods that L'Escape sells.
"The nation's hotel operators have recently begun coming up with various retail goods to offer distinctive services beyond room service," a Shinsegae Chosun Hotel spokeswoman said. "Selling the products such as these is a part of our strategy to show our distinguishing image to our customers."
However, the spokeswoman said her company does not count the sales of the Tenga's products at L'Escape.
On the contrary, E-mart, the operator of Pierrot Shopping, has aggressively promoted the success of the adult goods section at the store resembling Japan's Don Quijote, which deals in various products, including luxury goods, electronic appliances and sex toys.
The retailer said sales of adult goods at Pierrot Shopping in COEX in Seoul were 2.5 times higher than its initial sales goal during the month after its opening.
"Although its sales last month were slightly lower than they were in July due to the end of summer vacation, the section still attracts more customers than expected," an E-mart spokesman said.
Pierrot Shopping even sells "love dolls," which are modeled after women's bodies, as customers wanted more sensational products. The products made with silicon cost up to 10 million won ($8,900).
E-mart said the section is equipped with 1,800 types of adult goods, more than Japan's Don Quijote. 
The company also said female customers who visit Pierrot Shopping with their female friends are the biggest buyers of adult goods, followed by female customers with their boyfriends and male customers with their male friends.
According to the discount chain, the second Pierrot Shopping store, which will open in Doota Mall in downtown Seoul today, will also sell adult goods, although the size of the adult goods section at the new store will be smaller than that of the first one.
Data compiled by Statista, a market research portal, showed the global adult goods market is expected to grow to $29 billion in 2020, from $20 billion in 2015. Although the market size of domestic adult products is uncertain, industry officials estimate it has amounted to 200 billion won.
In Korea, a growing number of business owners have begun opening adult shops resembling ordinary gift shops in open spaces, such as streets near Itaewon and Hongik University, so that people can visit them easily.