Lotte Mart makes debut in Mongolia
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Lotte Mart Mongolia is opening its first store, in Ulaanbaatar, in the first half of next year.
The South Korean retailer has set up a joint venture with local retailer Nomin Holdings, which will sell Lotte’s private label products for the next 10 years. It is initially targeting sales of US$3 million annually.
To prepare for this expansion, Lotte Mart has already sold its food products of its private labels – Only Price, Yorihada, and Choice L – last year at four stores including a state-run department store and two supermarkets owned by Nomin in Ulaanbaatar.
Nomin Holdings is one of Mongolia’s three largest enterprises and has also worked with other global names including L’Oreal, Mango, and Century 21 in the country.
Mongolia is one of Lotte’s latest foreign markets after it pulled out from China. Parent Lotte Group operates 46 Lotte Mart stores in Indonesia and 13 in Vietnam. It launched its fast-food brand Lotteria in Ulaanbaatar last month.
Questions & Answers
Q.What is the expected annual sales target for Lotte Mart's first store in Ulaanbaatar?
What is the expected annual sales target for Lotte Mart's first store in Ulaanbaatar?
Lotte Mart is initially targeting annual sales of US$3 million. This target is for the first store opening in Ulaanbaatar in the first half of next year, in partnership with Nomin Holdings.
Q.Which local partner is Lotte Mart working with for its expansion into Mongolia?
Which local partner is Lotte Mart working with for its expansion into Mongolia?
Lotte Mart has formed a joint venture with Nomin Holdings, a Mongolian retailer. Nomin Holdings is one of the country's three largest enterprises and has previously collaborated with other international brands.
Q.How long will Lotte's private label products be sold by the local retailer?
How long will Lotte's private label products be sold by the local retailer?
Nomin Holdings will sell Lotte's private label products for the next 10 years as part of the joint venture agreement. This includes brands like Only Price, Yorihada, and Choice L.
Q.Which other Lotte brand has recently entered the Ulaanbaatar market?
Which other Lotte brand has recently entered the Ulaanbaatar market?
Lotte Group launched its fast-food brand Lotteria in Ulaanbaatar last month. This precedes the Lotte Mart store opening, indicating a broader strategy for the Mongolian market.
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