Yoshitsu Co., Ltd.
TOKYO, Aug. 12, 2024 (GLOBE NEWSWIRE) — Yoshitsu Co., Ltd. (“Yoshitsu” or the “Company”) (Nasdaq: TKLF), a retailer and wholesaler of Japanese beauty and health products, general merchandise, luxury goods, electrical appliances and other products in Hong Kong, Japan, North America and the United Kingdom, today announced that on August 1, 2024, through its Hong Kong subsidiary Tokyo Lifestyle Co., Ltd. (“TLS”), it has entered into the following agreements with Gurung Group Thailand Co., Ltd. (“Gurung Thailand”), a professional brand marketing agency, to develop a network of beauty product franchise stores in the Southeast Asian market under the “Tokyo Lifestyle” brand: (i) a trademark license agreement with Tokyo Lifestyle Thailand Co., Ltd., a company incorporated in Thailand and controlled by Gurung Thailand, and (ii) a purchase and sale agreement (collectively, the “Agreements”). The Company believes that these agreements mark an important milestone in the Company's ambitious regional expansion strategy.
With this agreement, the Company plans to 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 (sales area of 100-150 square meters) in downtown Bangkok in 2024 and eight lifestyle stores (sales area of 80-120 square meters) nationwide in 2025, bringing the total number of stores to 18 by 2026, and build a strong brand presence in the country. In Malaysia, the Company plans to open two standard stores in the Klang Valley in 2024 and five lifestyle stores nationwide in 2025, bringing the total number of stores to 15 by 2026.
Gurung Thailand Chief Executive Officer, Chan Johnny Liao, said, “We view Southeast Asia as one of the world's most promising emerging markets. We believe that by introducing the origin-in-Japan brand 'Tokyo Lifestyle', Yoshittsu will be able to capture the interest of local consumers and open up new opportunities for significant and lasting growth. Furthermore, we expect that our thoughtful location selection and network expansion plans will fit very well with the structure and characteristics of the local market, both in terms of a cost-efficient top-down distribution network and point-to-area penetration model. We believe this cooperation will accelerate mutual growth and foster more opportunities and development for both companies.”
The story continues
Mei Kanayama, President and CEO of Yoshitsune, said, “We are very pleased to see steady progress in our strategic expansion plan into the Southeast Asian market. We believe that Southeast Asia is a promising region that is rapidly developing and has great growth potential, but at the same time, it also presents unique challenges and fierce competition. After careful consideration, we have decided to partner with Gurung Thailand and adopt a franchise network expansion plan to establish our brand and presence in the region. With careful coordination, we have carefully selected downtown Thailand and Malaysia as our expansion base. By targeting a representative and fast-growing middle-class consumer group, we expect to build our brand awareness quickly and thoroughly. We are committed to providing high-quality fashion products to the market, enhancing customer experience and promoting the improvement of quality of life, cultural diversity and the local economy. We believe that this strategic step will open up access to this emerging market, promote long-term growth and ultimately create greater value for our shareholders.”
About Yoshitsu Co., Ltd.
Yoshitsu Co., Ltd. is headquartered in Tokyo and engages in retailing and wholesale of Japanese beauty and health products, general merchandise, luxury goods, electronic products, and other products in Hong Kong, Japan, North America, and the United Kingdom. We offer a variety of beauty products (including cosmetics, skin care, fragrances, and body care products), health products (including over-the-counter medicines, dietary supplements, medical supplies, and medical devices), general merchandise (including household goods), and other products (including food and alcoholic beverages). We currently sell our products through our own brick-and-mortar stores, online stores, franchised stores, and wholesale customers. For more information, please visit our 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 the 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 the Company's 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,” “seek,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “likely,” or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent events or circumstances or changes in the Company's expectations, except as required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. We also caution investors that actual results may differ materially from expectations and encourage them to consider other factors that could affect future results that are described in the company's registration statement and other filings with the Securities and Exchange Commission.
For further information, please contact:
Yoshitsu Co., Ltd.
Investor Relations
Email address: [email protected]
Ascent Investor Relations LLC
Tina Hsiao
president
Phone: +1-646-932-7242
Email: [email protected]
