"No Brand and 4 Years of Quality Cooperation... 'Jung Yong-jin Chili Shrimp' Hit Big"

[Beautiful Partnership] Relay Interview
① Emart No Brand - GNT
Interview with Han Hyunsoo, CEO of GNT
"Equal Partner Treatment, Not a Master-Servant Relationship"
First Ever Operating Profit Exceeds 1 Billion KRW Last Year

'No Brand Chili Shrimp,' a bestseller product in the No Brand online official store

[Asia Economy Reporter Minyoung Cha] As large discount stores' most popular products have established themselves as private brand (PB) items, interest in the small and medium-sized partner companies producing them is also increasing. Beyond the theme of win-win cooperation between large corporations and SMEs, we will feature a series of 10 relay interviews discovering small and medium food companies that create PB products, which have become like trademarks. The first interview is with Han Hyunsoo, CEO of GNT, the PB partner company behind the 'No Brand Chili Shrimp,' highly praised by Jung Yongjin.

Jung Yongjin, Vice Chairman of Shinsegae Group, is known for his down-to-earth communication style, sharing beloved products, places, and everyday stories on his personal Instagram account. Recently, from the renewed Emart Wolgye branch to Starbucks The Yangpyeong DTR bakery cafe, and even the jeans he wore, he has attracted great attention among his 390,000 followers. His affection for Emart's private brands (PB) No Brand and Peacock, which frequently appear, is also evident. The recently uploaded 'No Brand Chili Shrimp' received numerous 'likes' at the time of posting.

Emart Demanded Quality Over Cost

On the 29th, we met Han Hyunsoo, CEO of GNT, the company behind 'Jung Yongjin Chili Shrimp.' The relationship between GNT, a PB food manufacturer for Emart's No Brand, and No Brand dates back to 2017 when No Brand specialty stores numbered only 4 to 5 locations. CEO Han said, "At that time, a No Brand product planner (MD) saw GNT's frozen food in Emart stores and approached us, requesting to create delicious, single-dish processed foods targeting young housewives, which started our connection."

The first product, No Brand Chili Shrimp, was an instant hit upon release. Nearly four years have passed, but as of July 29, No Brand Chili Shrimp ranks 5th among all best-selling products, including industrial goods, on the official No Brand online store. Since the best rankings on SSG.com are linked in real-time, it is both a steady seller and a bestseller. The 'No Brand Whole Tender Chicken' product made by GNT also ranks within the top 10.

Hyunsoo Han, CEO of GNT

As the partnership continued steadily, GNT also began producing products for Emart's warehouse discount store Traders and Emart's premium PB brand Peacock. Among the approximately 50 products manufactured by GNT, 13 are No Brand products, 3 are Traders, and about 4 are Peacock products. Although these 20 items represent less than half of the product variety, they account for 55% of sales. GNT gained fame as a No Brand partner company in the food industry and expanded collaborations with other offline distribution brands such as Costco. Recently, riding the wave of e-commerce trends, they have expanded sales channels to Market Kurly, Baedal Minjok B Mart, and others. CEO Han said, "For small and medium manufacturers, PB means a true form of win-win cooperation beyond any other meaning. From the beginning, Emart No Brand treated us as an official partner, not a subcontractor in a hierarchical relationship, and continues to support us in every way, from hygiene training to marketing for employees and education for executives." Since No Brand hires event staff and covers all associated costs for new product promotions, the cost burden on manufacturers has significantly decreased. Worries about leftover inventory have also disappeared.

Nurturing the Dream of a Strong Small Business

By strategically collaborating with No Brand, GNT was able to significantly reduce its reliance on home shopping. CEO Han said, "Home shopping is an industry where product supply varies greatly depending on TV home shopping broadcast results, causing manufacturers to bear heavy burdens of inventory and commissions, making it less profitable. For long-term and stable growth, we boldly decided and executed a plan last year (2019) to reduce home shopping volume to below 10%." In 2019, operating profit reached 1.2 billion KRW, surpassing 1 billion KRW for the first time and achieving an operating profit margin of 4.5%. Considering the average operating profit margin for food companies is only 2-3%, this is an impressive figure. Capital investment also increased. As of 2019, machinery and building tangible assets were about 4.3 billion KRW and 6.5 billion KRW respectively, expanding 3 to 4 times from 1.9 billion KRW and 1 billion KRW in 2015 before entering Emart. Previously focused solely on frozen foods, they have now expanded capacity to include refrigerated foods. Employment is also on a virtuous cycle. GNT's staff grew from about 50 in 2015 to around 130 currently. They continue to employ skilled women retirees who retired at age 60, enhancing regional employment stability. In 2020, they were also selected as an elderly-friendly company.

CEO Han Hyunsoo emphasized, "As long as a company has manufacturing facilities capable of handling a certain scale of production, a stable financial structure, and competitiveness to build trust, it can become a strong small business anywhere. The taste of foods like macarons or menbosha, hand-crafted by skilled women in their 50s and 60s, is a clear strength unique to us that large food companies relying mainly on automated facilities cannot imitate."

This content was produced with the assistance of AI translation services.