Converted to a Grocery Specialty Store Last July
Expanding Domestic Operational Expertise through Localization
Growth with a 10% Increase in Customer Visits
Targeting Customers with K-Food and K-Beauty Content
Vietnam Operating Profit Last Year: 32.6 Billion Won, Up 29% Year-on-Year
Lotte Mart is achieving results in the Vietnamese retail market by leveraging its proven expertise in operating grocery stores in Korea.
Lotte Mart Vietnam announced on the 22nd that its operating profit last year reached 32.6 billion won, a 28.9% increase compared to the previous year. Sales rose by 9.3% to 396.5 billion won. The company continued its growth trend in the first quarter of this year, recording sales of 116.5 billion won and operating profit of 12.6 billion won.
Lotte Mart began its Vietnamese operations in December 2008 with the Nam Saigon store in Ho Chi Minh City and now operates 15 stores across the country. Notably, it is the only Korean retailer to have entered the market directly rather than through a franchise model. Recently, the company has been focusing on strengthening its store strategy centered on grocery specialty stores to enhance competitiveness. In 2023, it opened the West Lake Hanoi store as a new grocery specialty store model and converted four stores, including the Hanoi Center and Nam Saigon locations, into grocery specialty stores. The Hanoi Center store, which reopened after renovations on July 4, 2023, saw a 15% increase in sales and a 10% increase in customer visits over the past year.
Building Competitiveness in Deli Foods through Korea-Vietnam Collaboration
The Hanoi Center store introduced a 45-square-meter 'Yorihada Kitchen' space specializing in freshly prepared foods, offering more than 450 menu items including over 70 types of K-food such as tteokbokki, gimbap, and dakgangjeong. Reflecting Vietnam’s dining-out culture, the store also provides a dining area with about 90 seats. After introducing Yorihada Kitchen, sales of freshly prepared foods increased by more than 35% compared to the previous year. Among these, K-food accounts for 40% of total sales.
The company explained that this success was supported by collaboration between chefs from Korea and the Vietnam Food Innovation Center (FIC), who maintained authentic Korean flavors while adapting recipes to local tastes and implementing strict quality control.
Lotte Mart also introduced its in-house bakery brand 'Pungmiso' in Vietnam for the second time. Its traditional French baguette, made with French flour and a traditional double fermentation method, has been highly praised by local customers. The store also offers banh mi, a popular local sandwich, and long lines form during lunch hours due to its popularity. Since the introduction of Pungmiso, bakery sales have more than doubled.
Local customers are browsing products at the 'Yorihada Kitchen' corner of Lotte Mart Hanoi Center in Vietnam. Photo by Lotte Mart
Gaining Local Recognition with K-Food and K-Beauty
As Vietnamese consumers increasingly seek premium foods, local demand for Korean fruits such as strawberries and Shine Muscat grapes is also rising. In the processed foods section, Lotte Mart exclusively sells more than 50 varieties of K-snacks, directly sourced through collaboration with Lotte Wellfood as well as its own private brand (PB) products.
In the K-beauty sector, the company is focusing on targeting the local market, especially among younger generations. It offers around 300 cosmetic brands, including popular Korean brands such as 'Mediheal', 'VT', and 'Lilybyred', as well as value-for-money brands like 'JudyDoll' and 'Silkygirl', which have gained popularity through social networking services (SNS).
Additionally, Lotte Mart is expanding its localization strategy centered on grocery specialty stores. In the central and southern Vietnamese tourist city of Nha Trang, the company operates two stores: Nha Trang and Gold Coast. By the end of this year, the Nha Trang store will be renovated into a grocery specialty store tailored to local customers. The Gold Coast store, located by the beach, is operated as a store specialized for tourists. The two stores are pursuing a dual strategy tailored to the characteristics of each commercial district.
Shin Jubaek, head of Lotte Mart Vietnam, stated, "We are achieving meaningful results by precisely combining the successful grocery specialty store model from Korea with a sophisticated localization strategy. Moving forward, we will continue to strengthen our influence and competitiveness in the Vietnamese market based on differentiated content and competitiveness in areas such as K-food and K-beauty."
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