After Testing at 10 Stores Early This Year, Full-Scale Introduction in April
No Brand Stores See Average Daily Sales Increase by 8%
New Stores Also Achieve 20% Higher Average Daily Sales Compared to Existing Stores
'Royalty Franchise Model' Introduced for New Stores After April
Emart24 announced on the 20th that the number of stores selling No Brand products has surpassed 100. This achievement was reached just over 50 days after starting the sale of No Brand products.
Earlier, Emart24 conducted a test sale of No Brand products at 10 stores located in various commercial districts earlier this year. Since April, they have expanded to new stores while introducing No Brand products in existing franchise stores, and the number of stores operating with these products has now exceeded 100.
Emart24 explained that No Brand products received positive responses from customers, allowing them to surpass 100 stores about two weeks earlier than initially planned. In particular, existing franchise stores that introduced No Brand products saw an average daily sales increase of 8% compared to before the introduction. New stores grew by more than 20% compared to the average daily sales of existing stores.
Among the No Brand products sold at Emart24, snacks such as potato chips and chocolate chip cookies, frozen and refrigerated convenience foods like chicken breast, spicy sweet chicken gangjeong, charcoal-grilled teriyaki chicken skewers, bulgogi pizza, as well as daily necessities including 3-ply toilet paper, wet wipes, and kitchen towels have been popular.
The manager of Emart24 Uijeongbu Yonghyeon branch, which introduced No Brand products, said, "It seems that there are many fans who like No Brand," adding, "Customers are happy to be able to purchase No Brand products at a nearby convenience store."
Emart24 introduced No Brand products to create synergy with Emart while enhancing the competitiveness of franchise stores. Emart24 expects that No Brand products will help improve the competitiveness and profitability of franchise stores in the future.
At the same time, they introduced a 'royalty franchise model' utilizing No Brand products. The royalty franchise model is based on the sale of No Brand products and involves profit sharing between franchise stores and the headquarters. This model applies to all new Emart24 stores opened after April. For new stores under the royalty franchise model operating 19 hours a day, 71% of sales profit goes to the franchise store and 29% to the headquarters. This is said to be the industry's highest profit-sharing rate for store managers under the same conditions.
Existing Emart24 stores wishing to introduce No Brand products can sell 400 to 500 types of No Brand products in consultation with the headquarters. Existing store managers can maintain a monthly fee structure while sharing the profits from No Brand product sales with the headquarters.
Emart24 expects the new franchise model utilizing No Brand products to be a turning point for a new leap forward. They also plan to expand the number of No Brand products offered to 800 in the future.
Song Man-jun, head of Emart24 Operations Division, said, "In the increasingly fierce competitive environment, Emart24 aims to achieve sustainable growth for both franchise stores and headquarters through the introduction of No Brand products and the royalty franchise model," adding, "We will do our best to establish a win-win co-growth model where both franchise stores and headquarters can prosper together."
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