Emart24 Opens First Store in Malaysia... "Will Open 300 Stores Within 5 Years"

Interior view of Emart24 Malaysia Store No. 1 (Photo by Emart24).

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[Asia Economy Reporter Yuri Kim] Emart24 is entering Malaysia through a master franchise model. This marks its first overseas expansion in four years since rebranding.

Emart24 announced on the 23rd that it will open its first store in Malaysia (Bangsa South Branch) on the 24th in partnership with local company United Frontiers Holdings (U.F.H). After a soft opening starting from the 22nd for system testing, full-scale sales will begin on the 24th.

Emart24 signed a brand license agreement with U.F.H, a Malaysian food and distribution investment company, and is entering Malaysia via the master franchise model. The master franchise model involves a franchisor contracting with a local company instead of directly entering overseas markets, then selling franchise operation rights within a certain area to those wishing to become franchisees.

U.F.H, which signed the contract with Emart24, established 'Emart24 Malaysia' and plans to expand stores by operating the convenience store franchise business. Emart24 will provide brand usage rights, system know-how, and experience to 'Emart24 Malaysia' and receive royalties.

Emart24 Malaysia plans to launch its first store in the Kuala Lumpur office district and expand to various regions and commercial areas while monitoring the COVID-19 situation. The company stated, "Although the situation may be fluid due to COVID-19, we plan to expand to 10 stores by the end of this year and 300 stores within five years."

Starting with this Malaysian entry, Emart24 Korea plans to explore expansion into several countries including Vietnam and Indonesia, and if business feasibility is confirmed, continue overseas expansion to establish itself as a global convenience store brand. Lee Dalsu, Emart24 Marketing Director, said, "Emart24 is unveiling its first Malaysian store to mark the beginning of overseas expansion based on its experience and differentiation in Korea," adding, "We expect this to serve as a foothold to become a global convenience store brand by expanding into various countries in the future."

Emart24 Malaysia developed its interior and merchandise (MD) strategy tailored to the local culture where most meals are eaten at restaurants due to the hot weather. The first Emart24 Malaysia store features a two-story layout with a floor area of 257㎡ (approximately 78 pyeong) and is equipped with 10 to 15 tables to accommodate 40 diners simultaneously. This store concept, rarely seen in Korean convenience stores, increased the number of tables to suit local culture.

Efforts were also made to localize K-food to attract customers. Emart24 Malaysia strengthened K-food offerings that appeal to local tastes, including four types of Korean-style cup rice (Bulgogi, Chicken, Tuna Mayo, Salmon), as well as Tteokbokki, Dakgangjeong (sweet crispy fried chicken), and fried fish cakes. For customers enjoying beverages and desserts, the store sells over 20 types of drinks including brewed coffee, hot chocolate, and mint tea, serving as a coffee shop as well. They also offer four types of snowflake bingsu made using Korean snowflake bingsu equipment and three types of soft ice cream, providing instant desserts.

Additionally, Emart24 Malaysia sells Korean-style RTE (Ready To Eat) foods such as gimbap, triangular gimbap, sandwiches, and salads from Korea to attract trend-sensitive young customers. Emart24 Malaysia adopts a localization strategy by increasing customer attention with K-food and popular Korean products while also offering a wide variety of local products. Due to growing interest in K-beauty, a separate shop-in-shop Korean cosmetics zone has been established.

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