Malaysian retail chain Kioda to enter India, plans to invest $10 million
New Delhi: Malaysian fashion and lifestyle concept retail chain Kioda is planning to enter India, in a joint venture with franchise solutions company Franchise India Holdings Ltd, a top Kioda executive said.
Both the companies will be investing about $10 million over the next three to four years and will begin operations in the national capital, starting September 2017.
“We founded the company five years ago in association with a Korean designer and have been expanding in Asia ever since. Our stores are based on Korean concept and experience. We have found the right partner in India now and will start operations soon,” said Alvin In, managing director at Kioda. He was speaking on the sidelines of ‘Master Franchise Show 2017’ organised by Franchise India.
Over the next five years, the company is planning to open 200-300 concept stores in India, starting with mega cities like New Delhi, Mumbai and Chennai. Globally, Kioda has over 40 outlets across 13 countries and retails products in nine categories—health and beauty, seasonal products, handbags, textiles and knitwear, gifts and stationary, fashion accessories, digital appliances, and creative home.
“We always look at companies which are sustainable over a period of time and which are category creators. Kioda is clearly a category creator with its concept lifestyle stores,” said Gaurav Marya, chairman at Franchise India, which helps global brands find partners in India through franchising.
Going forward, Kioda plans to source 10-30% of its products locally and will import the rest from Malaysia. Kioda retails products at a price range of $2-$50 across the world and plans to take its revenue up to $100 million in the next two years, up from the current $10 million.
Experts said that the challenge for the brand will be the pricing and affordability of the products as Kioda will be competing with young fashion brands like Forever 21 and H&M.
“The brand looks very elegant and desirable which is the key. It seems that the brand will have acceptability with the designs but pricing, value and the digital game will be critical factors in deciding its fate,” said Rajat Wahi, partner, management consulting, Deloitte India.