South Korean retail giant E-Land Group said Monday that it plans to open its first shopping mall in mainland China later this year in a joint venture as part of its strategy to tap deeper into the world’s biggest market.
E-Land Group and Malaysia-based Parkson Group have agreed to establish a joint venture and open “Parkson-New Core Mall” in Shanghai in November.
The South Korean company said it will be in charge of management of the joint venture, with a 51-percent share.
Parkson Group is one of the largest department store operators in the Asian region, with 127 stores in China, Malaysia and Indonesia.
It is the first time for the South Korean retailer to run a large multiplex shopping mall in China, while E-Land now operates around 7,300 apparel stores in the neighboring country.
E-Land said the Parkson-New Core Mall will house its own fashion, houseware, shoes and accessory brands, as well as American and European luxury goods.
“China’s retail industry has already reached a saturation point,” said an official from E-Land Group. “We will introduce a new type of retail store in the market.”
Rival retailers including Lotte Group and Shinsegae have already entered the Chinese market but failed to produce outstanding results due to fierce competition.