Emart 'No Brand' Opens First Store in Laos

First Entry of Korean Retailer
Targeting Customers with 'Lifestyle-Oriented' Stores

Emart is the first domestic retailer to enter Laos. Emart announced on the 5th that it will open the 'No Brand 1st store' in the Civilize area of Vientiane, Laos on the 6th.

The total area of the store is 505㎡ (153 pyeong). It is the third in Southeast Asian countries after Vietnam and the Philippines. This is the first time a domestic retailer's store has entered Laos. Emart aims to showcase ‘No Brand’ products with good prices and quality to the people of Laos, spreading the excellence of Korean retail industry.

Laos No Brand store appearance. Provided by Emart.

Laos is a landlocked country with a total population of 7.5 million, surrounded by five countries: Cambodia, Thailand, Myanmar, China, and Vietnam. Due to its culture centered on small markets and traditional markets, there are no large retailers, and the retail industry regards it as a market with great potential. The Civilize area, where No Brand is opening, is a middle-class densely populated area with relatively high purchasing power.

To enter Laos, Emart signed a master franchise agreement related to Laos entry in February with ‘UDEE.CO.,Ltd,’ an investment company of LVMC Holdings (Korao Group). A master franchise means that the franchisor grants the local company, the contracting party, the rights to operate the franchise business and brand.

Emart will introduce the No Brand 1st store as a lifestyle-oriented store. It is a strategy to maximize convenience for residents by opening stores near residential areas. Considering the strong interest in Korean culture, about 1,000 Korean products will also be imported. In addition, Korean-style promotions such as 1+1 discount events, which are rarely seen locally, will be actively introduced. Furthermore, a food court and household goods store operated by partners will also be introduced.

Laos imports products relying on importers from neighboring inland countries such as Thailand. The logistics structure is complicated, increasing costs at each distribution stage. Emart has established a structure to directly distribute Korean products to Laos No Brand, departing from the local method. This is to reduce logistics costs and offer a variety of Korean products.

In the future, Emart plans to open about 20 No Brand stores within 5 years, accelerating its attack on the Laos market. Choi Jong-geon, head of Emart’s overseas business, said, "After great efforts, Emart has opened the first Laos No Brand store, introducing K-retail to the people of Laos," and added, "Emart will continue to diversify its overseas business to widely promote the excellence of K-retail and strive to provide high-quality products and services to overseas customers."