Shinsegae Department Store said on the 12th that it officially opened the first overseas franchise location of the Shinsegae Factory Store on the 8th at "Kokkok Mega Mall Patuxai" in Vientiane, the capital of Laos.
The store opened under a franchise agreement with Grandview Property, an affiliate of Laos-based distribution corporations Kolao Group. The model combines Shinsegae's product sourcing and store operations built in Korea with the local partner's distribution infrastructure.
Shinsegae cited strong local preferences for K-fashion and K-beauty as the reason it chose Laos as its first overseas market. It judged that interest in Korean brands is particularly high among young women in the capital, Vientiane. The fact that about 5 million foreign tourists visit Laos annually was another reason it rated the market potential highly.
The Laos store, built at about 400 pyeong, is configured as a "department store–style off-price store" that brings multiple fashion and beauty brands together in one place.
In fashion, K-fashion brands such as Kirsh, Brownbreath, and Covernat are front and center. Along with Citybreeze and VOLDY, casual and golf brands such as Cleveland Golf and Adidas Golf are also featured. In a separate cosmetics zone, K-beauty brands such as Beauty of Joseon, Nature Republic, and SKIN1004 are sold.
The product lineup reflects the local climate and consumption preferences. Given Laos' lack of winter, it raised the share of summer-season items to 80% of all products. In addition to items sold at domestic factory stores, it added brands and products with high local preference.
According to Shinsegae, about 10,000 people visited the Laos store on the first official day of opening. Shinsegae Department Store plans to use the Laos location as a base for expanding into Southeast Asia. It will expand the factory store franchise business to major countries such as Thailand and Vietnam, and build a business model that combines local distribution corporations' infrastructure with Shinsegae's product sourcing and operational capabilities.
Park Sang-eon, managing director in charge of new retail at Shinsegae Department Store, said, "The first Laos store is a meaningful starting point as the first introduction of the Shinsegae Factory Store, which has proven its competitiveness in Korea, to the overseas market," and added, "We will provide differentiated brands and a rational shopping experience to local customers while helping excellent Korean brands expand overseas, and we will continue to expand the territory of the Korean-style off-price business, starting with Southeast Asia."