JYSK presses on in Vietnam
JYSK presses on in Vietnam
Danish JYSK Group, a well-known international retail chain, opened another store in Vietnam last week as part of its business expansion in the lucrative Vietnamese interior-decor market.
Nguyen Quoc Vinh, CEO of NeatClean, the franchise partner of JYSK in Vietnam, told VIR, "The new store is the fourth facility in Hanoi and the fifth in Vietnam since we started operations in the country in 2015."
The new facility is located in Lo Duc Street, with a total area of nearly 1,200 square metres. JYSK stores bring a unique and homely Scandinavian style for Vietnamese households.
"We are seeking favourable locations for four to five other stores in both Hanoi and Ho Chi Minh City next year to meet the growing local demand for lifestyle and interior décor products," he added.
These stores are part of JYSK’s plan to open a chain of 10-20 stores in Vietnam by 2020 and capitalise on steady growth rates, a growing consumption base of currently more than 90 million people, the strategic location in Southeast Asia, the young population, and fast growing middle class.
According to NeatClean's recent study, amid fierce competition from other famous brands in the local market, the watershed between success and failure is selling price.
"We expect that when the Vietnam-EU Free Trade Agreement (FTA) takes effect in 2018, JYSK will enjoy import tariff cuts, enabling us to reduce prices and gain competitiveness in the Vietnamese market, which has become a magnet to a number of foreign players in the field," Vinh noted.
NeatClean, which was established in April 2015 by founders operating in retail, trade, import-export, and interior-décor, will take responsibility for developing JYSK's interior-décor retail network in Vietnam.
As a leader on the European market in all articles for the bedroom, bathroom, living-room, the window, and the patio, JYSK currently has over 2,300 stores in 43 countries across the globe. The company’s turnover is 2.8 billion euro.
