Local Largest Distributor Signs Export Agreement
Shop-in-Shop Opening Planned in FairPrice Stores
"PB Products to Expand Exports to North America and Europe"
The Lotte Distribution Group is targeting the Singapore market by leveraging the private brands (PB) of Lotte Mart and Lotte Super.
On the 28th (Korean time) in Singapore, Kim Sang-hyun, Vice Chairman and General Manager of Lotte Distribution Group (right), and Vipul Chaula, CEO of NTUC FairPrice Group (left), posed for a commemorative photo after signing a business agreement to supply and sell Lotte PB products. [Photo by Lotte Distribution Group]
On the 28th, the Lotte Distribution Group announced that it has signed a business agreement to supply and sell PB products with Singapore's largest retailer, NTUC FairPrice. The signing ceremony took place in Singapore at FairPrice's headquarters, attended by Kim Sang-hyun, Vice Chairman and General Representative of Lotte Distribution Group, Kang Sung-hyun, CEO of Lotte Mart and Lotte Super, and Vipul Chaula, CEO of NTUC FairPrice Group.
FairPrice is Singapore's largest retailer with annual sales of approximately 4.5 trillion KRW. Since its establishment in 1973, it has operated differentiated offline stores tailored to various commercial districts, including 161 supermarkets and 184 convenience stores throughout Singapore.
Through this business agreement, Lotte Distribution Group plans to introduce Lotte Mart and Lotte Super’s master PB brand ‘Oneul Joeun’ and the home meal replacement PB brand ‘Yorihada’ in FairPrice stores in a shop-in-shop format. Conversely, FairPrice’s PB products will also be introduced in Lotte Mart and Lotte Super stores, continuing mutual cooperation.
From January to July this year, exports of these two PB products increased by about 60% compared to the same period last year, gaining popularity overseas. PB products are exported to 13 countries, including Vietnam, Mongolia, and Hong Kong, with 500 items.
Considering the K-food craze sweeping Singapore, the shop-in-shop PB stores will also operate ‘Yorihada Kitchen,’ a specialty store for instant cooking. It features an open kitchen and dining space where customers can directly observe the food preparation process. The plan is to offer a variety of instant cooked foods, including tteokbokki, gimbap, as well as chicken and dakgangjeong.
The reason Lotte Distribution Group is targeting the Singapore market with PB products is that Singapore is a country with high consumption potential, where income levels as well as the distribution and food markets are continuously growing.
Singapore ranks first in Asia with a per capita GDP of about 90,000 USD, and as income levels rise, per capita food consumption is also increasing. According to the Korea Agro-Fisheries & Food Trade Corporation (aT)’s ‘2023 Agro-Food Export Country Information Survey,’ Singapore’s food market is expected to grow from approximately 11.4 billion USD (about 12 trillion KRW) in 2022 to 13.7 billion USD (about 14 trillion KRW) by 2026, increasing annually by 4.8%. The sustained increase in demand for home meal replacements in Singapore following COVID-19 is also a positive factor.
Lotte Distribution Group expects that its entry into Singapore will have a positive impact on opening new sales channels for domestic small and medium-sized enterprises (SMEs) and mid-sized companies. Over 90% of the PB products exported by Lotte Mart and Lotte Super are products from domestic SMEs and mid-sized companies, and the group plans to actively cooperate with excellent manufacturers and support their overseas market expansion in the future.
Vipul Chaula said, "The normalization of travel to Korea and the K-food craze have led to increased demand for Korean food," adding, "Through this agreement, we look forward to Lotte Distribution Group’s PB products delivering the taste of Korea to Singapore."
Vice Chairman Kim said, "Following our entry into Vietnam, Mongolia, and Hong Kong, we plan to promote K-food in Southeast Asia through our Singapore expansion and expand PB export business to various regions such as North America and Europe in the future."
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