Japanese drugstore chain Matsumoto Kiyoshi has announced its first foray into Vietnam with a flagship store in Ho Chi Minh City after two years of customer behavior research.
The Japanese pharmaceutical and cosmetic giant and the Vietnamese organic instant food producer Lotus Food Group will establish their joint venture - Matsumuto Kiyoshi Vietnam - in February 2020, the two firms said at a press conference in Ho Chi Minh City on Monday.
With a registered capital of VND31.5 billion (US$1.35 million), the joint venture will be owned 51 percent and 48.87 percent by Matsumoto Kiyoshi and Lotus Food Group, respectively.
Le Van May, Lotus Food Group’s president, will hold the remaining 0.13 percent and will also be the president of the joint venture.
The two sides had signed a preliminary agreement for the establishment in July this year.
Matsumuto Kiyoshi Vietnam will open its first flagship store in District 1, Ho Chi Minh City at the end of March 2020, with ten to 15 more stores expected to follow in the next three to five years.
It has plans to expand its network in the Vietnamese market to hundreds of outlets in the future.
Speaking at Monday’s press conference, Kiyoo Matsumoto, president of Matsumoto Kiyoshi Holdings, said the firm sets a target that Matsumoto Kiyoshi will become a store chain which Vietnamese people want to visit once a week, with affordable products and several promotions.
According to Matsumoto, the Japanese firm has analyzed data of Vietnamese customers who shop at pharmaceutical and cosmetic stores during their trips in Japan since 2017 for its inroads into Vietnam.
“Cosmetics and dietary supplements are the most purchased products by Vietnamese customers with an annual growth rate of over 56 percent,” Matsumoto told the press conference, adding that the two are also the company’s key products.
Founded in 1932, Matsumoto Kiyoshi Holdings operates many wholesale and retail pharmaceutical and cosmetic companies in Japan.
Vietnam is the third overseas market in Asia after Taiwan and Thailand to have a Matsumoto Kiyoshi store.
The Japanese firm had 34 stores in Thailand and five in Taiwan as of September 2019, as it has been pursuing overseas expansion in recent years.