E-Mart is accelerating the overseas expansion of No Brand, its private-label brand, by ramping up specialty store operations in Mongolia. The retailer plans to grow its local footprint based on proven sales performance at Mongolia E-Mart outlets.
According to the retail industry on Wednesday, E-Mart plans to open three No Brand specialty stores in Mongolia this year. The company aims to expand the network to 15 stores by 2028 and up to 50 stores within the next decade. E-Mart will also build a dedicated logistics cluster for No Brand to strengthen its local distribution network.
Mongolia's capital Ulaanbaatar is home to about 1.7 million people, roughly half of the country's total population. Due to long winters and heavy traffic, the market has strong demand for "one-stop shopping," where consumers purchase household goods and groceries in a single location.
E-Mart first entered Mongolia in 2016 and currently operates six stores in the country. Weekend traffic averages around 30,000 visitors per day.
Sales of No Brand products are also growing rapidly. Mongolia E-Mart currently carries about 800 No Brand items. According to E-Mart, last year the brand sold 50,000 units of cheese snacks and 100,000 units of biscuits, while juice sales reached 400 tons.
No Brand's annual sales in Mongolia surpassed 10 billion won ($7.3 million) last year. E-Mart plans to leverage the demand built up through Mongolia E-Mart to expand into the specialty store business.
E-Mart has also been expanding No Brand specialty stores in Laos and Thailand. Additional outlets have opened in Laos, while operations are growing in Thailand centered on local distribution channels.
"Having confirmed the competitiveness of No Brand products in the Mongolian market, we plan to expand cooperation with local partners," said Kang Young-seok, head of E-Mart's overseas business.
Separately, E-Mart signed a No Brand specialty store business contract with Mongolian company SKY Hypermarket LLC on November 28. The specialty stores will operate under a master franchise model, with the local operator managing the business.
