Mongolia recently got its second E-mart, the discount chain of Korean retail giant Shinsegae.
Unlike the first store, which has its own building, the second store is renting 5,000 square meters on the first and second floors of the Solo Mall in western Ulaanbaatar.
The new store sells 12,000 types of goods, with Korean products accounting for 30 to 40 percent. Four out of 10 Korean products at the store are supplied by small and medium enterprises, according to E-mart.
After signing a contract in July 2016 with Sky Trading, the local distribution unit of Mongolian retail giant Altai Group, E-mart entered the Mongolian market as a franchise receiving royalties for teaching the know how of running the stores.
The first store posted 42 billion won (US$37 million) in sales IN 2016, 140 percent higher than expected. It chalked up 8.4 billion won from sales of Korean products.
E-mart attributed the results to the good quality and fresh ingredients of Korean products, because most Mongolian consumers had been unable to buy such products before.
“Among 20 supermarkets in Ulaanbaatar, E-mart is the only one that offers almost all kinds of products,” a company official said. “The store has attracted middle-class customers.”
E-mart said it has sent Korean workers to the second store. They are attracting Mongolian customers with rice rolls, pork belly and chicken based on Korean recipes. The store also sells pizza, which has begun winning popularity among Mongolian consumers.
The company said it also plans to sell sashimi for Mongolian customers who have not been able to taste fresh fish because of the country’s landlocked location.