Japan's largest furniture retail chain Nitori looks to open its first store in Vietnam
Japan's largest furniture retail chain Nitori looks to open its first store in Vietnam
Japan's Nitori Holdings Co., Ltd., is looking to open its first Nitori store in Vietnam with a view to speed up more store openings in the Asian market.
Nitori, Japan's largest furniture and home-furnishing retail chain, has a plan to open its first store in Vietnam. The move is part of the company's strategy to take on Ikea in Asia with new Thailand and Vietnam stores.
"Our rival is Ikea," Nitori said, adding that the next five years will be decisive.
Accordingly, Nitori plans to open 77 stores this fiscal year, more than double its year-earlier tally. It has already added locations in China and Taiwan and plans to enter six other markets for the first time, including Vietnam and Indonesia. Next fiscal year, it aims to launch more locations abroad than in Japan, as reported by Nikkei Asia.
Before any upcoming retail presence in Vietnam, Nitori has had already set up its manufacturing base in Vietnam. The group boasts two in-house factories in Hanoi and the southern province of Ba Ria-Vung Tau.
Covering a total area of about 160,000 square metres, the Hanoi factory began operation in 2005. Meanwhile, the total area of the Ba Ria-Vung Tau factory is about 400,000sq.m, which is about 2.5 times that of the Hanoi factory.
According to a Mordor Intelligence report, the scale of the Vietnamese furniture market is expected to expand from $1.4 billion in 2023 to $1.82 billion in 2028, with a compound annual growth rate of 5.33 per cent during the period.
As a result, Vietnam's furniture market has attracted major international brands to enter the country, such as Thailand's Central Retail with its Come Home brand. Meanwhile, existing players, such as Danish retail chain JYSK, continue to expand their presence in Vietnam.
