The overseas market playbooks of E-MART and Lotte Mart, the two leading big-box retailers in Korea, are clearly diverging. E-MART is widening its footprint across multiple countries through a master franchise model that grants brand operating rights to local distributors, while Lotte Mart is sticking to a direct-entry strategy by operating its own stores in Vietnam and Indonesia. Analysts say the two companies' formulas for overseas expansion are hardening in different ways, reflecting their differing experiences and outcomes in past overseas businesses.
According to the retail industry on Apr. 6, E-MART on Mar. 31 opened the first No Brand store in Bangkok's "Central Bangna" as a retail outlet selling various daily necessities and ready-to-eat (deli) foods. This is the first time a Korean retailer has opened an offline store in the Thai market.
E-MART's foray into Thailand came through a master franchise agreement signed with Central Food Retail under Thailand's largest retail corporations, Central Group. A master franchise is a model in which a franchisee contracts with a local company and then licenses the franchise business and brand operating rights. The franchisee can export the brand and products while lowering investment burdens and regulatory risks, and the local company can enhance business stability by introducing a proven retail model.
E-MART earlier opened the first No Brand store in Vientiane, the capital of Laos, in Dec. 2024 through a master franchise agreement with a local partner, and recently expanded to a fourth store. In Mongolia, it is operating six stores through a partnership with local retailer Altai Group. In the Philippines, No Brand entered in 2019 in collaboration with local retailer Robinsons Retail, and has operated 11 stores to date. Convenience store affiliate E-MART24 also entered Malaysia in 2021, Cambodia in 2024, and India in 2025, each through a master franchise model.
E-MART's pursuit of the master franchise approach in overseas expansion stems from trial and error with past direct entries. E-MART entered Shanghai, China, in 1997 and at one point expanded to 26 stores in 2010. However, losses mounted due to localization failures and other factors, leading to a gradual reduction in stores; in 2017, amid the THAAD retaliation, it exited the remaining six stores, completely withdrawing from China 20 years after entry.
E-MART also made a direct entry into Vietnam in 2015 but could not easily expand stores due to local regulations. In 2021, E-MART transferred corporate equity to local corporations THACO and converted to a franchise model. The shift allowed it to reduce investment burdens and regulatory risks while exporting PB (private brand) products and operating know-how.
Lotte Mart, by contrast, has continued its retail business through direct entries in Vietnam and Indonesia. Lotte Mart opened the Nam Saigon store in Ho Chi Minh City in 2008, launching its Vietnam business in earnest. The same year in Indonesia, it acquired 19 stores of the Dutch big-box chain Makro for about 360 billion won, laying a business foundation.
Since then, Lotte Mart has built up local store networks, logistics, and merchandising (MD) capabilities, and recently has been expanding through a strategy that strengthens K-food, fresh produce, and ready-to-eat meals. As of the end of last year, it had 63 overseas stores in total, including 15 in Vietnam and 48 in Indonesia.
Although Lotte Mart operates in only two countries, it is steadily scaling up in each. Last year, Lotte Mart's overseas sales were 1.5461 trillion won and operating profit was 49.6 billion won, up 3.3% and 3.6%, respectively, from a year earlier. Because the direct-entry model is delivering results, there appears to be little incentive to shift to a franchise.
Different as they are, both companies plan to accelerate their overseas businesses this year. E-MART will leverage the opening of the first No Brand store in Thailand to spread its brand and PB products in Southeast Asia. Lotte Mart plans to add two new stores in Vietnam in the second half of this year and to expand conversions to hybrid stores that combine wholesale and retail in Indonesia.
A retail industry official said, "As the domestic offline market slows, both E-MART and Lotte Mart need to create new growth engines through overseas businesses," and added, "Beyond simple scale expansion, the importance of overseas operations is growing in terms of product exports, boosting brand recognition, and diversifying revenue sources."