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Southeast Asia is changing into a brand new battleground for South Korean comfort retailer chains, with native manufacturers dashing to open shops in international locations comparable to Malaysia and Vietnam.
Native comfort retailer chain GS25′s operator, GS Retail, mentioned Monday it has joined arms with Malaysian retail conglomerate KK Group to make forays into the Malaysian market.
KK Group operates 610 KK Mart comfort shops in Malaysia and owns different companies, comparable to accommodations and resorts.
The 2 firms will open their first GS25 comfort retailer in Malaysia subsequent yr, below a “grasp franchise deal” the place KK Group pays royalty charges to function GS25 shops within the Southeast Asian nation.
Their objective is to additional broaden the variety of GS25 shops to 500 over the subsequent 5 years, it mentioned.
Malaysia is GS25′s third entry abroad, after Vietnam and Mongolia.
Southeast Asia is seen as a promising marketplace for native comfort retailer operators because of its comparatively younger inhabitants and quickly rising fast-moving client items (FMCG) sector.
South Korea’s largest comfort retailer chain by the variety of shops, BGF Retail, just lately opened its one hundredth CU retailer in Malaysia’s southern state of Perak and plans to extend the quantity to 500 throughout the subsequent 5 years.
Emart 24, the fourth-largest native participant by the variety of shops, additionally operates 20 shops in Malaysia.
Competitors is heating up in Mongolia as effectively.
CU operates 225 shops in Mongolia as of June this yr. Its competitor GS25 operates 70 shops there since its entry final Might.
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