Emart, a prominent South Korean retailer, has launched its first ‘Nobrand’ specialty store in Mongolia, marking a significant step in its strategy to create an export platform for domestic small and medium-sized enterprises (SMEs). The new store, located in the Yarmag district of the capital city Ulaanbaatar, aims to expand the overseas market reach for Korean businesses.
Nobrand’s International Debut in Mongolia
The inaugural Nobrand store in Mongolia is the largest among its international locations, spanning approximately 836 square meters (about 253 pyeong). It features a diverse product selection, including around 1,100 Nobrand private label items, alongside an additional 5,000 products comprising both Korean and Mongolian goods. Emart has plans to open a second store in Mongolia by the end of the current month, signaling a rapid expansion of the brand in the region.
Nobrand is recognized as a key ‘export platform’ for Emart, with approximately 70% of its products manufactured by Korean SMEs. This initiative is designed to create a symbiotic growth environment where the expansion of Nobrand stores abroad directly translates into increased export opportunities for these smaller enterprises. The success of this model is evident in the sales figures; Nobrand’s product sales in Mongolia surpassed 10 billion Korean won last year, with projections for this year exceeding 12 billion Korean won.
Government Support and Strategic Partnerships
The South Korean government has recognized and is supporting Emart’s international expansion efforts. Emart was selected as a recipient of the ‘Trade Company Overseas Expansion Support Project’ this year, a joint initiative by the Ministry of Trade, Industry and Energy and KOTRA (Korea Trade-Investment Promotion Agency). This governmental backing underscores the strategic importance of Nobrand’s role in facilitating SME exports.
Further solidifying its presence, Emart entered into a Memorandum of Understanding (MOU) on September 9th with its local operating partner in Mongolia, SKY Hypermarket. This agreement focuses on enhancing brand recognition, expanding the sales of Korean products, and joint marketing initiatives. The opening ceremony for the first Nobrand store was attended by notable figures, including Kim Jeong-gwan, the Minister of Trade, Industry and Energy, and Han Chae-yang, the CEO of Emart, highlighting the significance of the venture.
Mongolia: A Market Ripe for Retail Expansion
Mongolia presents a unique market opportunity, characterized by a highly urbanized population. Half of its 3.5 million residents live in the capital, Ulaanbaatar, creating a concentrated consumer base. The country’s challenging climate, with long winters, and frequent traffic congestion in the capital, drives a strong demand for ‘one-stop shopping’ solutions that cater to groceries, dining, and daily life needs in a single location.
Emart has been operating in Mongolia since 2016 and currently manages six stores. These range from large-scale hypermarkets of approximately 3,800 pyeong to smaller, medium-sized stores around 330 pyeong, offering tailored formats to suit different neighborhood needs. The stores attract a substantial number of visitors, with an average of 30,000 customers on weekend days.
The local operating partner, SKY Hypermarket, has seen significant growth in its ranking within Mongolia, moving from 62nd place in 2017 to 21st place last year, according to the Mongolian Chamber of Commerce and Industry. This upward trajectory indicates the successful integration and growing market penetration of Emart’s retail model.
Future Expansion Plans
Looking ahead, Emart aims to significantly expand its Nobrand presence in Mongolia. The company plans to increase the number of Nobrand specialty stores to 15 by 2028 and establish a dedicated logistics cluster for locally tailored products. The long-term vision is even more ambitious, with a goal to reach 50 stores within the next decade, creating a comprehensive retail network across Mongolia.
An Emart representative expressed optimism about the venture, stating, “Leveraging the retail know-how and customer trust built over the past decade in Mongolia, we are showcasing a new growth engine with ‘Nobrand specialty stores.’ We will continue to expand our K-retail platform, which helps excellent products go overseas and fosters mutual growth between local customers and domestic companies.” This strategic expansion is poised to not only benefit Emart and its partner but also provide a vital channel for Korean SMEs to access international markets.
