E-Mart takes steps to boost private-label Peacock lineE-Mart, the country’s top discount chain, has taken further steps to go beyond its traditional status as a big supermarket by developing and distributing its own private-label products to other competing retailers.
It will supply its Peacock food products to Lotte Home Shopping, the company said on Tuesday.
The move follows a distribution contract with mobile commerce platform Coupang to supply 120 types of Peacock items.
Through the latest deal with the television home shopping network, E-Mart will sell one of its kimchi products.
“By overcoming the limits of private-label products, we will develop Peacock into the country’s meal solution,” said Kim Il-hwan, a director at E-Mart who oversees the development of the brand.
“The expanded network will help us boost awareness of the brand.”
E-Mart said it is in talks with GS Home Shopping and other department stores and e-commerce players to distribute Peacock products.
Launched in 2013, Peacock has become a primary source of revenue for E-Mart, with annual sales reaching 127 billion won ($106 million) last year.
The strategy for the brand has gained attention as Chung Yong-jin, vice chairman and CEO of Shinsegae, is known to be heavily involved with Peacock.
Shinsegae owns the E-Mart chain, along with Shinsegae Department Store.
Most of Peacock’s products can be quickly cooked with hot water for a simple meal, a move that will target single people and working parents. Items range from cookies to ready-made rice dishes.
The focus on private-label products comes as big supermarket chains are facing stagnant sales growth, owing to stiff competition from competing chains and the growing popularity of e-commerce platforms.
To help strengthen the brand, E-Mart built a research and development center to conduct safety tests and develop new products last month.
Peacock currently has some 500 products, but that will increase to 1,000 next year, according to E-Mart.
BY PARK EUN-JEE [firstname.lastname@example.org]
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