Yoshitsu builds franchise network for Southeast Asia expansion

Yoshitsu Co., Ltd, a retailer and wholesaler of Japanese beauty and health products, sundry products, as well as other products in Hong Kong, Japan, North America, and the UK, is on the road to growing in Southeast Asia. Through its HK subsidiary, Tokyo Lifestyle Limited (TLS), the company has entered the following agreements with Grun Group Thailand Co. Ltd., a professional brand marketing agency, to develop a network of franchise stores for beauty products in the Southeast Asia market under the Tokyo Lifestyle brand: (i) a trademark license agreement with Tokyo Lifestyle Thailand Co., Ltd., a company incorporated in Thailand, the controlling shareholder of which is Grun Thailand, and (ii) a purchase and sales contract.

This will help Yoshitsu establish a distribution network of 18 franchise stores in Thailand and 15 franchise stores in Malaysia by the end of 2026. In Thailand, the company expects to open three standard stores (with a floor plan of 100 to 150 square meters each) in downtown Bangkok in 2024 and eight lifestyle stores (with a floor plan of 80 to 120 square meters each) nationwide in 2025, and reach 18 stores nationwide by 2026, with the expectation of building a strong brand presence in the country. In Malaysia, the Company anticipates opening two standard stores in Klang Valley in 2024 and five lifestyle stores nationwide in 2025, and reaching 15 stores nationwide by 2026.

Mr. Qiang Liao, Chief Executive Officer of Grun Thailand, said: “We consider Southeast Asia as one of the most promising emerging markets in the world. By introducing the brand ‘Tokyo Lifestyle,’ which originated in Japan, we believe Yoshitsu can capture local consumers’ interests, unlocking new opportunities for significant and lasting growth. Moreover, we expect our thoughtful site selection and network expansion plan to be highly compatible with the structure and characteristics of the local markets, both from the perspective of a cost-efficient top-down distribution network and a point-to-area popularization model. We believe this cooperation will accelerate mutual growth, promoting more opportunities and development for both companies.”

Mr. Mei Kanayama, Principal Executive Officer of Yoshitsu, said: “We are thrilled that our strategic expansion initiatives into the Southeast Asia market have made solid progress. We believe Southeast Asia is a fast-developing and promising region that could offer vast growth potential and present unique challenges and fierce competition. After careful consideration, we decided to partner with Grun Thailand and adopt a franchise network expansion plan to establish our brand and presence in the region. With intense coordination, we carefully chose the downtown areas in Thailand and Malaysia as our expansion outposts, targeting the representative and fast-growing middle-class consumer groups, expecting to build our brand awareness quickly and thoroughly. We are committed to delivering our high-quality fashion products to the market, enhancing customer experiences, and fostering improvements in life quality, cultural diversity, and the regional economy. I believe this strategic step could open up access to this emerging market, driving our long-term growth and ultimately creating more value for our shareholders.”