Vice Chairman Jeong Yong-jin's 'No Brand'... Establishing Itself as a Profit Driver Brand for Emart

Shin Yong-jin, Vice Chairman of Shinsegae, posted 'No Brand Oyster Sauce' on his Instagram account on the 20th. (Photo by Instagram)

[Asia Economy Reporter Seungjin Lee] No Brand, Emart's private brand (PB) specialty store, is experiencing rapid growth. As cost-effectiveness has emerged as an important value in consumption, No Brand, which sells quality products at 'unbelievably low prices,' is gaining popularity through word of mouth, leading to a swift increase in sales. With additional support from Shinsegae Vice Chairman Jeong Yong-jin, No Brand has established itself as a key brand for Emart.

According to the distribution industry and financial information provider FnGuide on the 24th, Emart's specialty store business sales in September reached 105.4 billion KRW, an 18.4% increase compared to last year. Among these, No Brand's sales increased by 41%, and its share of specialty store sales is estimated to have risen to 70%.

Emart's specialty store business recorded an annual loss of 90 billion KRW last year due to the poor performance of the health and beauty (H&B) store 'Boots' and the general goods store 'Pierrot Shopping.' Facing urgent needs to improve performance, Emart discontinued Boots and Pierrot Shopping, and No Brand has quickly filled this gap.

As of the end of the second quarter this year, No Brand operates 270 stores, an increase of 30 stores compared to the same period last year, showing rapid expansion. No Brand has reduced prices by cutting promotional marketing costs and boldly giving up services unrelated to the essence of the products, maximizing sales profits. No Brand's sales have grown to about one-tenth the size of discount store sales.

No Brand store at Emart Wangsimni branch. (Photo by Lee Seungjin)

In response, Emart is also experimenting with expanding No Brand stores within its discount stores. Recently, Emart Wangsimni branch doubled the size of its existing No Brand store within the store through a renovation. No Brand products, which were scattered across basic main shelves, were gathered and displayed in one place, and the number of items was expanded to about 700.

Additionally, Vice Chairman Jeong's full support continues. He has been promoting No Brand daily through his Instagram account. With approximately 470,000 followers, his Instagram provides significant promotional impact.

On the 5th, during his visit to Starfield Anseong, he posted a photo taken in front of a No Brand store, followed by photos and videos of No Brand golf gloves, oyster sauce, canola oil, and other products. A photo of him wearing No Brand golf gloves received about 29,000 likes. Also, a video of Vice Chairman Jeong cooking using No Brand oyster sauce surpassed 210,000 views.

No Brand is also opening co-prosperity stores, playing a role in coexistence between Emart and traditional markets. The co-prosperity stores were launched with the aim of attracting younger customers to markets by placing No Brand stores in vacant market spaces. Now in its fourth year, the co-prosperity stores have been established in 15 traditional market locations, including Dangjin Fish Market (the first store), Gumi, Anseong, Yeoju, Seoul Dongdaemun, Daegu, Andong, Jecheon, Donghae, Samcheok, Daejeon, Incheon, Mungyeong, Jumunjin, and Sejong City.

An Emart official explained, "No Brand promotes the phrase 'It’s not a brand, it’s the consumer,' abandoning the brand itself to focus solely on customers. As cost-effective products like tissue and milk gain popularity and the number of customers visiting No Brand steadily increases, we will continue to do our best in the future."