The Japanese-based furniture retailer is planning to utilise its regional strengths to expand in Southeast Asia, particularly focussing on Thailand and the Philippines.
Currently, ten percent of Nitori’s stores are situated outside of Japan, with the majority in China and Taiwan. With plants already set up in Thailand and Vietnam, the brand boasts strong supply chains within the region that can be immediately utilised, allowing them to open more stores with agility.
The company is exploring opening stores in other countries alongside the Philippines and Thailand, including Vietnam, Indonesia and South Korea. President and COO of the company, Toshiyuki Shirai explains that expanding in to a new region is ‘never easy’ due to local store competition and existing suppliers of furniture and goods. He goes on to say that the company has seen potential in the ‘high trust’ among consumers for Japanese quality, along with reasonable pricing.
Shirai also noted: “We get a lot of inquiries about store openings from shopping centres, as not many deal with the kinds of products we carry. They seem to view us as a chance for calling in new customers.”
By the end of the fiscal year, Nitori intends to have around 900 stores, of which 15 per cent will be outside of Japan.
