| E-Mart / First hypermarket to enter Laos, '1st store to open in the second half of the year' | |
 
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E-Mart enters Laos for the first time 'opening the first store in the second half of the year' Aiming to open 20 E-Mart stores and 70 no-brand stores within 10 years 2024/03  E-Mart will be the first hypermarket to enter Laos. E-Mart announced that it has signed a master franchise agreement with 'UDEE.CO.,Ltd', an investment company of LVMC Holdings (Korao Group), and plans to open one E-Mart and three no-brand stores in the second half of this year. Master franchising is a method in which a franchisor licenses the right to operate a franchise business and brand after signing a contract with a local company instead of going overseas directly. UDEE.CO.,Ltd, which signed the agreement with E-Mart, aims to open 20 E-Mart stores and 70 no-brand stores in the next 10 years, and plans to continue to expand its business. In particular, this agreement is more meaningful in that it is the first entry into the domestic hypermarket. E-Mart expects to introduce E-Mart and no-brand specialty stores with good quality and service in Laos, and to become a bridgehead for expanding the influence of K-distribution. Currently, Laos has a population of about 7.5 million people and is a landlocked country surrounded by five countries: Cambodia, Thailand, Myanmar, China, and Vietnam. With a culture centered on small and traditional markets, it is considered a market with great distribution potential as there are no hypermarkets yet. UDEE.CO.,Ltd is a company wholly owned by Autoworld (KDC), a subsidiary of LVMC Holdings. The Korao Group is known as the largest private company operating in Laos. The Korao Group, of which LVMC Holdings is a part, was founded by Korean Chairman Oh Se-Young and named after the combination of the words 'KOREA' and 'LAOS'. The company started its automobile assembly and sales business in 1997 in Vientiane, the capital of Laos, and now operates a wide range of businesses including finance, platform, construction, finance, and leisure. Based on its strong reputation in Laos, real estate and logistics capabilities, Korao Group has been diversifying into retail distribution since last year. In March 2023, it opened the first store of kok kok Mega Mart, a hypermarket that is smaller than a hypermarket, and in August, it opened the first store of kok kok Mini Mart, a convenience store. "E-Mart is the first Korean hypermarket to sign a master franchise agreement with Laos," said Song Man-joon, Executive Vice President of PL/Global Business Division at E-Mart. "We will work closely with LVMC Holdings to promote the excellence of K-distribution and provide quality products and services to the people of Laos." Meanwhile, since 2016, E-Mart has signed franchise agreements in Vietnam, Mongolia, and the Philippines. Last year's sales of three E-Mart stores in Vietnam, which entered the country in 2016, increased about 3.5 times in seven years, and sales of four E-Mart stores in Mongolia increased about 9 times compared to 2016. The no-brand specialty store in the Philippines, which entered the market in 2019, has also been praised for its success as the number of stores has increased significantly to 17. |
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