Yoshitsu Co., Ltd Establishes Franchise Network for Southeast Asia Expansion
August 12 2024 - 8:00AM
Yoshitsu Co., Ltd ("Yoshitsu" or the "Company") (Nasdaq: TKLF), a
retailer and wholesaler of Japanese beauty and health products,
sundry products, luxury products, electronic products, as well as
other products in Hong Kong, Japan, North America,
and the United Kingdom, today announced that, on August 1,
2024, the Company, through its Hong Kong subsidiary, Tokyo
Lifestyle Limited (“TLS”), entered into the following agreements
with Grun Group Thailand Co. Ltd. (“Grun Thailand”), 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 (collectively, the “Agreements”). The
Company sees these Agreements as representing a significant
milestone in the Company’s ambitious regional expansion strategy.
By entering into the Agreements, the Company
plans to establish a distribution network consisting 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 (Johnny) Liao, Chief Executive Officer
of Grun Thailand, remarked, “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, commented, “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.”
About Yoshitsu Co., Ltd
Headquartered in Tokyo, Japan, Yoshitsu
Co., Ltd is a retailer and wholesaler of Japanese beauty and health
products, sundry products, luxury products, electronic products,
and other products in Hong Kong, Japan, North
America, and the United Kingdom. The Company offers various
beauty products (including cosmetics, skincare, fragrance, and body
care products), health products (including over-the-counter drugs,
nutritional supplements, and medical supplies and devices), sundry
products (including home goods), and other products (including food
and alcoholic beverages). The Company currently sells its products
through directly-operated physical stores, through online stores,
and to franchise stores and wholesale customers. For more
information, please visit the Company's website
at https://www.ystbek.co.jp/irlibrary/.
Forward-Looking Statements
Certain statements in this press release are
forward-looking statements, within the meaning of Section 21E of
the Securities Exchange Act of 1934, as amended, and as defined in
the U.S. Private Securities Litigation Reform Act of 1995. These
forward-looking statements involve known and unknown risks and
uncertainties and are based on current expectations and projections
about future events and financial trends that the Company believes
may affect its financial condition, results of operations, business
strategy, and financial needs. Investors can identify these
forward-looking statements by words or phrases such as "may,"
"will," "expect," "anticipate," "aim," "estimate," "intend,"
"plan," "believe," "potential," "continue," "is/are likely to," or
other similar expressions. The Company undertakes no obligation to
update forward-looking statements to reflect subsequent occurring
events or circumstances, or changes in its expectations, except as
may be required by law. Although the Company believes that the
expectations expressed in these forward-looking statements are
reasonable, it cannot assure you that such expectations will turn
out to be correct, and the Company cautions investors that actual
results may differ materially from the anticipated results and
encourages investors to review other factors that may affect its
future results in the Company's registration statement and in its
other filings with the U.S. Securities and Exchange Commission.
For more information, please
contact:
Yoshitsu Co., LtdInvestor Relations
DepartmentEmail: ir@ystbek.co.jp
Ascent Investor Relations LLCTina
XiaoPresidentPhone:
+1-646-932-7242Email: investors@ascent-ir.com
Yoshitsu (NASDAQ:TKLF)
Historical Stock Chart
From Sep 2024 to Oct 2024
Yoshitsu (NASDAQ:TKLF)
Historical Stock Chart
From Oct 2023 to Oct 2024