THAI home furnishing and décor company Index Living Mall has signed a franchise agreement with the SM Group in the Philippines.
A Bangkok Post report said that the Philippine retail giant will operate Index Living Mall’s furniture outlets in the Philippines for fi ve years, starting from next year. After that, the contract may be renewed for another five years.
Since its establishment in 2002 by Pisit Patamasatayasonthi, Index Living Mall has become the first specialty mall for home furnishing in Thailand. Over the years, the company has expanded both locally and abroad, and foreign sales are expected to double to 15% of the total amount in three to five years’ time.
The Philippine franchise is the second the company has embarked upon in the ASEAN region. The first was in Malaysia, in partnership with Aeon. The first Malaysian outlet opened in Putrajaya in December last year, and the company plans to open 30 branches nationwide within the next 15-20 years.
Index Living Mall managing director Kridchanok Patamasatayasonthi told the Thai newspaper that the Philippines was chosen for its huge market potential. “There’s no furniture or furnishing chain like us in the country,” she said. Index Living Mall also has stores in Nepal, the Maldives and Russia. Plans for Indonesia are expected to be finalised by mid-year, while Vietnam is another area being considered.
In Thailand, the company plans to invest some Bt1.5 billion this year to open four new stores. The new additions will bring the total network of Index Living Mall branches in Thailand to 25