Convenience stores tapping into overseas market with PB products
In this article (5)
Amid a stagnant domestic economy, Korea’s convenience store chains are tapping into markets abroad to sell private brand products, industry sources said Tuesday.
Major convenience store chain CU is exporting its self-branded cheese-flavored and red pepper-flavored instant noodles to Jumei, a Chinese online retailer.
GS25, meanwhile, has been selling its own Chinese-style instant noodle product Gonghwachun in Australia and New Zealand. The product was made in partnership with a Chinese cuisine franchise.
Last year, 7-Eleven Korea was the first Korean retailer to sell dried laver and low-price, self-branded snacks produced in cooperation with small and medium-sized manufacturers.
Shinsegae’s convenience store unit With Me began selling hangover-cure ice cream Gyeondyeo Bar in Russia in May, according to a company source.
“Private brand goods’ sales abroad will not just find a way out for retail giants. This will be an opportunity for small and medium-sized enterprises to develop inroads into overseas markets,” a source said.
Questions & Answers
Q.Why are Korean convenience store chains looking to sell private brand products overseas?
Why are Korean convenience store chains looking to sell private brand products overseas?
Korean convenience store chains are tapping into overseas markets for private brand products due to a stagnant domestic economy. This strategy allows them to find new avenues for growth and expand their reach beyond Korea.
Q.Which Korean convenience store was the first to sell private brand products abroad?
Which Korean convenience store was the first to sell private brand products abroad?
7-Eleven Korea was the first Korean retailer to sell self-branded products internationally last year. They exported dried laver and low-price snacks produced in cooperation with small and medium-sized manufacturers.
Q.What types of private brand products are being sold by CU and GS25 in international markets?
What types of private brand products are being sold by CU and GS25 in international markets?
CU is exporting cheese-flavored and red pepper-flavored instant noodles to China. GS25 is selling its Chinese-style instant noodle product Gonghwachun in Australia and New Zealand, developed with a cuisine franchise.
Q.How do these overseas sales benefit smaller businesses in Korea?
How do these overseas sales benefit smaller businesses in Korea?
Selling private brand goods abroad provides an opportunity for small and medium-sized enterprises (SMEs) to develop inroads into overseas markets. This expands their reach beyond the domestic economy.
Reader pulse
Is overseas PB expansion a winning strategy?
17,171 votes so far