SEOUL, October 1 (AJP) - Faced with lengthy depression in domestic demand at home, Korean retailers have been aggressive in their outreach and expansion in the Asian market, riding on the popularity of Korean contents and food.
Pivot Asia has become the common strategy for Korean retailers spanning from fashion houses to convenience stores.
Lotte Shopping is accelerating its overseas business with 'Lotte Mall Westlake Hanoi', based in Hanoi, Vietnam. Since opening two years ago, the outlet has drawn 25 million visitors, generated 600 billion won (more than $420 million) in sales, established itself as a community landmark.
About 800 international tourist buses bringing visitors here every month, including many Chinese tourist groups, making Lotte Mall considered to have risen to become a "super mall" beyond Vietnam.
The retailer has recently added a SPA for the affluent. By attracting F&B brands, holding more than 150 large-scale pop-ups, and localizing the VIP system, it has established the 'standard of K retail.' Based on this, it is renewing existing bases such as Ho Chi Minh City, Vietnam, and Jakarta, Indonesia, and is also working to secure new sites.
Shinsegae Group is readying inroads to the Southeast Asian market through a joint venture (JV) with Alibaba.
The first 5 countries targeted include Vietnam, Singapore, Thailand, the Philippines and Malaysia. In line with the K-content craze, the idea is to support domestic sellers to secure competitiveness on the global stage.
Online retailer G-Market has teamed up with 'LAZADA', a leading e-commerce platform in Southeast Asia. It has linked about 20 million products and started selling to 160 million local customers. Korean sellers can apply the existing sales method as it is, making it highly accessible, while taking advantage of the automatic translation function to reduce language barriers.
Big-box store chain E-Mart operates 5 and 3 stores in Mongolia and Vietnam, respectively. It has opened 16 'No Brand' stores in the Philippines and 3 in Laos. E-Mart said it is in discussions with partners about continuing to scale up and enhance its business model.
Convenience stores, which closed about 100 outposts in Korea, are eager to make amends overseas.
GS25 is expanding its presence by operating hundreds of stores in Malaysia, Mongolia, and Kazakhstan. In addition, E-Mart 24 exceeded 100 stores in 4 years after entering Malaysia. It has entered major cities in 11 local states, and aims to reach 130 stores by the end of this year and 200 stores by 2026.
Southeast Asia and India pose as promised land with young population, rapidly growing middle class and increased spending power. The global popularity of Korean food and contents also add to the favorable environment for Korean brands.
"The distribution infrastructure in Southeast Asia is still limited," one industry watcher said, adding that the growth potential nevertheless is huge. The market is opportune for Korean retailers with their richer experience and brand recognition.
Copyright ⓒ Aju Press All rights reserved.
![[OPINION] Vietnam is a Battleground – for Commerce and Investment](https://image.ajunews.com/content/image/2023/10/04/20231004175122734818_278_163.jpg)
