Main Contract Signed for Franchise Business with Laotian Private Company
First Store to Open in Vientiane Kokkok Mega Mall in Early Next Year
Shinsegae Department Store's off-price store, Shinsegae Factory Store, is entering the Laos market. Laos, with a population of about 7.7 million, is known for its high interest in Korean culture and is considered to have great potential in the K-content market.
On the 31st, Shinsegae announced that it signed a main contract the previous day at its headquarters in Gangnam-gu, Seoul, with Grandview Property Sole Co., Ltd, a subsidiary of Korao Group, the largest private company in Laos, for a franchise business.
(From left) Park Sang-eon, Head of MD Team at Shinsegae Factory Store; Jang Su-jin, Head of Product Division at Shinsegae Department Store; Lim Chan-gyu, Executive Director in charge of Business at Megamall Household Goods Specialty Store; and Noh Ki-ho, Executive Director in charge of BOG (Business Operation & Growth) at Korao Group, are taking a commemorative photo after the franchise signing ceremony of Shinsegae Factory Store at the Shinsegae Department Store headquarters in Seoul on the 30th. [Photo by Shinsegae Department Store]
Grandview Property plans to open the first overseas Shinsegae Factory Store in Laos inside the 'Kok Kok Mega Mall,' scheduled to open in the first half of next year in Vientiane, the capital of Laos. Furthermore, they aim to continuously expand the business by opening a total of 10 stores in Laos within the next 10 years.
Through this agreement, Shinsegae expects to introduce specialty stores supplying K-fashion and K-beauty products in Laos, thereby enhancing the global recognition and influence of domestic brands.
Shinsegae Factory Store is a store where Shinsegae Department Store purchases brand inventory products and directly sets the prices for sale. It operates 17 stores domestically and offers continuous discounts of 30-80% on overstock products from famous domestic and international brands.
Shinsegae Department Store plans to raise the purchase ratio of K-fashion to more than half in the Factory Store opening in Laos and additionally introduce popular K-beauty and miscellaneous goods.
Park Sang-eon, MD team leader of Shinsegae Factory Store, said, "With the signing of the franchise business contract for entering Laos, Shinsegae Factory Store has officially started a new retail business. We will expand our global influence focusing on countries with high growth potential for K-content, including Indochina."
Meanwhile, Shinsegae Department Store is actively supporting the overseas expansion of K-brands. In May last year, it launched a B2B platform to help competitive emerging brands expand their activities overseas. It also held trade shows and pop-up events in major countries such as France, Italy, Japan, Indonesia, and Thailand, and plans to collaborate with leading department stores worldwide, including Japan, in the second half of this year.
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