Japanese retail company plans expansion in PH

The Japanese lifestyle and fashion retailer Adastria Co. Ltd. aims to expand in the Philippines by opening more Niko and… stores and strengthening its omnichannel retail presence.

The Ministry of Trade and Industry announced the expansion last week after Adastria opened its flagship store “Niko and…” in Pasay City earlier this month.

The company’s flagship brand is known for its unique blend of functionality and creativity, offering lifestyle and fashion products.

Adastria is said to have recognized the importance of the Philippine market, with its young population, growing fashion consciousness and rising disposable income, in achieving its goal of expanding in Southeast Asia.

Secretary of Commerce Ma. Cristina Roque said Adastria’s entry into the Philippine market would strengthen Filipino-Japanese partnerships in the lifestyle and retail sectors.

“It is a prime example of how collaboration between government initiatives and private sector dynamics can produce mutually beneficial outcomes – driving economic growth, improving consumer options and driving innovation across industries,” she added.

The retailer’s entry into the market is said to have been facilitated by the amended Retail Trade Liberalization Act (RTLA), which reduced capital and investment requirements for foreign retailers.

Dita Angara-Mathay, trade advisor at the Department of Commerce, said: “By reducing the minimum paid-up capital requirements for foreign retailers, eliminating the need for a pre-qualification certificate from the Philippine Board of Investments and lowering the investment requirements for.” The revised RTLA in individual branches has “The attractiveness of the Philippines for foreign private investors has increased significantly.”

Adastria, which has 45 brands and a network of 1,282 domestic and 127 international stores, has partnered with the Philippines’ Primer Group of Companies in a joint venture with an initial capitalization of P160 million.

Meanwhile, Roque said another Japanese home furnishing giant, Nitori, is looking to expand its presence in the country after opening its first Philippine store in April.

“The wholesale and retail sector is the backbone of our economy. In 2023, it contributed P4.4 trillion to our gross domestic product and employed over 10.3 million Filipinos,” she said.