April 20, 2024

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[THE INVESTOR] Korean retail giant Lotte Mart on July 17 announced that it will further expand its presence in Mongolia by exporting private label products before opening its first hypermarket.

Earlier this year, Lotte Mart signed a contract with local retailer Nomin Holdings to launch an outlet in Ulaanbaatar. Established in 1992, Nomin Holdings has been working with many global companies including L’Oreal, Mango, CanDo and Century 21.

The deal was signed amid the Korean retail giant’s attempt to diversify its foreign business portfolio, after it bore the brunt of Beijing’s economic retaliation following the deployment of a THAAD missile system on its site.

In May, Lotte Mart exported its private label items including Only Price and Choice L worth around US$30,000 to check the market demand in Mongolia. The company will export additional private products worth around US$40,000 on July 18.

“We will export more PB products produced by Korean small and medium enterprises to Mongolia,” Lotte official Yoon Joo-kyung said in a statement. The company added that it aims to further increase its distribution channels in the country.

By Song Seung-hyun (ssh@heraldcorp.com)