Nitori – Furnishing a regional expansion| UOB ASEAN Insights

Having already opened more than 820 stores across Japan, Taiwan and China, Japanese home furnishing giant, Nitori, has set its sights on Southeast Asia.

As part of its strategy to tap ASEAN’s economic potential, the company kick-started its regional expansion in January 2022, launching its first store in Malaysia. It soon opened another store in March, this time, in Singapore, with support from UOB. The momentum has not ebbed, with plans to widen Nitori’s presence in ASEAN, not just in these two countries but also in markets like Vietnam, Thailand, and Indonesia.

When looking for a reputable financing partner to help with its expansion and local market set up, Nitori required speed and efficiency, as well as regional expertise – all of which the Bank was able to fulfil.

For instance, with UOB’s "One Bank" servicing model, multiple teams were pulled together to fast-track the solutions necessary to launch the Singapore store within two months. The local corporate banking relationship management team acted as the single point of contact, liaising with UOB Malaysia to gather required documentation from Nitori's ASEAN headquarters in Malaysia, while UOB Tokyo rendered translation aid as the documents were in Japanese. The transaction banking and merchant services teams were also activated to set up Nitori's cash management and payment channels.

Furthermore, through UOB Infinity – the Bank’s digital banking solution for businesses – Nitori was able to gain comprehensive access to its day-to-day accounts and transactions in Singapore and Malaysia. The company’s growing ASEAN footprint also meant that it could tap UOB’s FX capabilities as well as regional expertise for market entry advisory.

With comprehensive solutions tailored to clients’ needs, UOB’s “One Bank” approach connects businesses to growth opportunities in the region, and beyond.

About this series

Building Asia is a collection of business stories on CNA that examines the financial forces driving Asia’s position as an economic powerhouse.

Nitori – Furnishing a regional expansion was first aired on 20 March 2023 under the Building Asia with UOB series. Watch how Japanese furniture giant, Nitori, was able to leverage UOB’s regional presence and suite of business solutions to fuel its expansion across ASEAN.

Transcript

Soichi Oda (Executive Officer, Nitori Holdings Co. Ltd.):

Nitori operates 700 stores in Japan and 120 stores in China and Taiwan. It is the largest home furnishing store in Japan, selling furniture and interior goods. As part of our global strategy, we decided to open stores in the ASEAN region in 2020, a region with high economic growth and high potential.

In January 2022, we opened a store in Malaysia, and in March 2022, we opened a store in Singapore.

Leong Yung Chee (Head, Group Corporate Banking, UOB):

Nitori needed to be set up and running within a very short span of time. UOB was able to pull together seven different teams within the bank spanning different products and geographies to work together to deliver to them a fast, competent solution in time. We were able to do this because teams in Japan were able to help us translate documents that were in Japanese, coordinate with the decision makers in Malaysia, and work with the teams in Singapore in getting the operation set up.

We have also provided to them cash management services and merchant services for them to carry out their retail sales operations in Singapore.

Soichi Oda:

Once the decision was made to open a new store, the store had to be up and running by the end of March, which was a very short preparation period. I was busy with various tasks such as establishing the company and developing the logistics network. We needed to have a cash and payment management system in place for the stores. We collaborated with UOB in January. UOB provided us with everything speedily in a very short period of time.

Leong Yung Chee:

As Nitori expands into the region, we are able to provide them with market entry advice and handhold as they open accounts and provide onboarding services in the various countries that they operate in. This matches our regional footprint to a tee. We are also able to provide them with UOB Infinity.

This is our online business application that allows them to track their cash flows and operating requirements across the region from one portal.

Soichi Oda:

Over the next five years, we aim to open 20 stores in Malaysia and 10 stores in Singapore. We are also planning to open stores in Thailand this year. We are also considering opening stores in other countries such as Vietnam, Philippines and Indonesia at an early stage, and to solidify our presence in ASEAN.

Leong Yung Chee:

We hope to bring the same level of competency and solutions to Nitori as they expand into the region. Our footprint in the region matches their ambitions and we will grow together stronger and better.