Shinsegae Factory Store’s first overseas location in LaosSHINSEGAE DEPARTMENT STORE
Shinsegae Department Store has opened its first overseas Factory Store in Laos and plans to use the country as a springboard to expand into major Southeast Asian markets such as Thailand and Vietnam, the retailer said on Wednesday.
Shinsegae Factory Store operates as an off-price retailer, selling past-season merchandise and excess inventory from well-known brands at steep discounts from regular prices.
The Shinsegae Factory Store opened Saturday at Kokkok Mega Mall Patuxay in Vientiane, the capital of Laos, spanning about 1,320 square meters (14,200 square feet). It is the retailer's first overseas store launched through a franchise agreement with Grandview Property Sole, an affiliate of Lao retail company Kolao Group.
Shinsegae chose Laos as the first overseas market for its Factory Store business due to the considerable popularity of K-fashion and K-beauty in the country. Preference for Korean brands has been growing in Vientiane, particularly among young female consumers.
Cosmetics ranked No. 4 among Korean products exported to Laos in 2024, according to a 2026 Laos market entry strategy report published by the Korea Trade-Investment Promotion Agency (Kotra). Cosmetics ranked No. 7 in export value from January through September last year.
The product lineup was also tailored to reflect this demand. The store features well-known K-beauty brands such as Beauty of Joseon, Nature Republic and Skin1004. Its K-fashion offerings focus on brands the company says are popular with younger consumers, including Kirsh, Brownbreath and Covernat.
It also carries golf brands such as Cleveland Golf and Adidas Golf. Laos is one of Southeast Asia’s leading golf tourism destinations.
About 80 percent of the store's merchandise consists of summer-season products due to its local climate. Laos has a hot and humid climate year-round with no winter, and its annual average temperature ranges from 25 to 29 degrees Celsius (77 to 84 degrees Fahrenheit).
Shinsegae Factory Store’s first overseas location in LaosSHINSEGAE DEPARTMENT STORE
The store drew strong interest from local shoppers. It attracted around 10,000 visitors on its grand opening day. Visitors included a diverse mix of local customers and tourists in Laos.
Shinsegae plans to expand the business across Southeast Asia. With Laos receiving about 5 million foreign tourists annually, the first overseas Factory Store is expected to serve as a test bed for the retailer's broader push into the region.
Shinsegae aims to increase the scalability of its overseas business by combining the distribution infrastructure of its local franchise partner with its own expertise in product sourcing and store operations. The company also plans to develop its Korean-style off-price business into a global retail model.
"We will provide local customers with differentiated brands and a value-oriented shopping experience while helping promising Korean brands expand overseas," said Park Sang-eon, an executive in charge of new retail at Shinsegae Department Store. "Starting with Southeast Asia, we will continue expanding the reach of the Korean-style off-price business."
BY KANG BO-HYUN [kim.jiye@joongang.co.kr]
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
