Private-label deal for E-mart Korea
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Discount seller E-mart Korea has signed an agreement to supply its private-label items to Metro China.
It is introducing four items from its No Brand range, to be sold from next month. It is the first time for E-mart to export to an overseas offline store.
E-mart’s private-label products already sell in Mongolia and Vietnam. Sales of its No Brand range at its Ulaanbaatar branch, which opened last month, have already reached 600 million won (US$533,000), accounting for about 7 per cent of total sales. No Brand contributed 3 per cent of sales at its Vietnamese outlet, which opened in December.
Introduced in April last year with nine items, No Brand now has more than 300 products, from butter cookies to car window wipers, and posted 63.8 billion won turnover in the first half of this year.
Metro is a German retailer that is the third-largest franchise globally following Walmart and Carrefour. It has more than 2200 outlets in 33 countries, with 88 in China.
Questions & Answers
Q.What items from E-mart's private-label range will be supplied to Metro China?
What items from E-mart's private-label range will be supplied to Metro China?
Metro China will initially be supplied with four items from E-mart Korea's No Brand range. These private-label products are set to be available in stores starting from next month.
Q.What is the significance of this agreement for E-mart Korea's export strategy?
What is the significance of this agreement for E-mart Korea's export strategy?
This agreement marks the first time E-mart has exported its private-label items to an overseas offline store. While its products sell in Mongolia and Vietnam, this is a new type of export channel.
Q.How successful has E-mart's No Brand range been in its existing international markets?
How successful has E-mart's No Brand range been in its existing international markets?
In Ulaanbaatar, No Brand sales reached 600 million won (US$533,000) last month, making up about 7% of total sales. In Vietnam, No Brand contributed 3% of sales at the outlet opened in December.