E-Mart No Brand Store involved in ‘variant SSM’ controversy
Park Min Yeong | ironlung@ | 2017-05-10 10:23:42
E-Mart`s no-brand store has been involved in a controversy about `variant SSM (enterprise type supermarket)` as it faced opposition from Korean l merchants. Local merchants are expected to block the entry of the no-brand store through the application of business adjustment and the opposition movement under consideration of the product composition and the selling price are fatal to the local commercial area.
No-brand stores mainly deal with non-branded products, which are E-Mart`s private brand (PB) products. E-Mart is currently operating 28 no brand stores in Seoul, Gyeonggi, Incheon, Daejeon, Busan, and Sejong, after starting with the first store opened in Bora-dong, Gyeonggi Province last August. Discount store, E-mart Everyday which is SSM of E-Mart, shopping malls, and outlets is in different operation. There are nine non-metropolitan area stores that are currently under operation or are about to open, and stores are expanding nationwide in Korea, excluding the Dangjin fishery market. E-Mart is expected to open 9 more stores in Jeonju, Ulsan, Gyeonggi-do, Goyang and Hwaseong.
Local merchants are strongly opposed to the expansion of no-brand stores nationwide. Local merchants argue that the products handled by the no-brand stores overlap with the supermarket sales products, and that E-mart is a PB product, which is threatening the local commerce market because of its high brand impact and low price. No-brand specialty store is a new type of SSM. It is a store of large-scale store operators, so it can be regulated under the retail industry development law.
The local merchant organizations in Jeonju and Gwangju plan to submit a business adjustment application to Korea Federation of Small and Medium Business after proceeding with surveys. If the business coordination is requested by Korea Federation of Small and Medium Business, the parties will self-negotiate. In the case of the consultation is not done, Korea Federation of Small and Medium Business may go to the business coordination council and recommend large companies to postpone business expansion and reduce production items and quantity.
The Jeonju Supermarket Cooperative plans to apply for a business co-ordination to Korea Federation of Small and Medium Business before no brand store opening in Hyoja-dong by completing related survey. Meanwhile, the Supermarket Cooperative in Gwangju City, which held a press conference for the opening of a brand-new store on May 1, is currently conducting a survey on merchants to apply for business adjustments next week. Seogu commission of Gwangju city has decided on May 2 that it will announce the opposition to the Gwangju Chipyeong no brand store opening. The Busan Small and Medium Business Support Association has been focusing on opposing the opening of Emart Town in the city, but is aware of the seriousness of the no brand stores and plans to respond to plans to open new stores in Busan in the future.
Kim Young-seok, secretary general of the Busan Small and Medium Business Support Association, stated, "No-brand stores are located in every corner of the country and there is concern about the destruction of local commercial rights as no brand stores will handle identical items as local shops.”
"The no-brand is in fact a brand of E-mart, and the brand power of E-mart is quite big" said Jeonju Supermarket Cooperative Planning Department chief Lee Hun-sik. He also said, "It is difficult for supermarkets to sell products sold at most stores with cheaper prices.”
E-Mart denies that the size of the no-brand store is not as large as the SSM, and the supermarket and store structure are different. No brand stores, currently, sell PB products such as tuna, olive oil, bottled water, ramen, bluetooth headset, and cosmetics. Lotte Chilsung and Lotte confectionery makers also sell food and beverage products, stationery and toys, and there are a lot of products that are similar to supermarkets and stationery store items.
E-Mart representative mentioned, "No-brand stores are not SSM, and it`s difficult to consider them as supermarket stores."
By Park Min Yeong ironlung@
[ copyright ⓒ The Digitaltimes ]
No-brand stores mainly deal with non-branded products, which are E-Mart`s private brand (PB) products. E-Mart is currently operating 28 no brand stores in Seoul, Gyeonggi, Incheon, Daejeon, Busan, and Sejong, after starting with the first store opened in Bora-dong, Gyeonggi Province last August. Discount store, E-mart Everyday which is SSM of E-Mart, shopping malls, and outlets is in different operation. There are nine non-metropolitan area stores that are currently under operation or are about to open, and stores are expanding nationwide in Korea, excluding the Dangjin fishery market. E-Mart is expected to open 9 more stores in Jeonju, Ulsan, Gyeonggi-do, Goyang and Hwaseong.
Local merchants are strongly opposed to the expansion of no-brand stores nationwide. Local merchants argue that the products handled by the no-brand stores overlap with the supermarket sales products, and that E-mart is a PB product, which is threatening the local commerce market because of its high brand impact and low price. No-brand specialty store is a new type of SSM. It is a store of large-scale store operators, so it can be regulated under the retail industry development law.
The local merchant organizations in Jeonju and Gwangju plan to submit a business adjustment application to Korea Federation of Small and Medium Business after proceeding with surveys. If the business coordination is requested by Korea Federation of Small and Medium Business, the parties will self-negotiate. In the case of the consultation is not done, Korea Federation of Small and Medium Business may go to the business coordination council and recommend large companies to postpone business expansion and reduce production items and quantity.
The Jeonju Supermarket Cooperative plans to apply for a business co-ordination to Korea Federation of Small and Medium Business before no brand store opening in Hyoja-dong by completing related survey. Meanwhile, the Supermarket Cooperative in Gwangju City, which held a press conference for the opening of a brand-new store on May 1, is currently conducting a survey on merchants to apply for business adjustments next week. Seogu commission of Gwangju city has decided on May 2 that it will announce the opposition to the Gwangju Chipyeong no brand store opening. The Busan Small and Medium Business Support Association has been focusing on opposing the opening of Emart Town in the city, but is aware of the seriousness of the no brand stores and plans to respond to plans to open new stores in Busan in the future.
Kim Young-seok, secretary general of the Busan Small and Medium Business Support Association, stated, "No-brand stores are located in every corner of the country and there is concern about the destruction of local commercial rights as no brand stores will handle identical items as local shops.”
"The no-brand is in fact a brand of E-mart, and the brand power of E-mart is quite big" said Jeonju Supermarket Cooperative Planning Department chief Lee Hun-sik. He also said, "It is difficult for supermarkets to sell products sold at most stores with cheaper prices.”
E-Mart denies that the size of the no-brand store is not as large as the SSM, and the supermarket and store structure are different. No brand stores, currently, sell PB products such as tuna, olive oil, bottled water, ramen, bluetooth headset, and cosmetics. Lotte Chilsung and Lotte confectionery makers also sell food and beverage products, stationery and toys, and there are a lot of products that are similar to supermarkets and stationery store items.
E-Mart representative mentioned, "No-brand stores are not SSM, and it`s difficult to consider them as supermarket stores."
By Park Min Yeong ironlung@