Manila, Philippines — Adastria Co., Ltd., a leading Japanese lifestyle and fashion retailer, officially launched its flagship “niko and…” store in the Philippines in the SM Mall of Asia on December 12. The store’s opening marks a significant milestone in Adastria’s strategic international expansion, and highlights the Philippines’ growing appeal as a retail investment destination.

“Adastria’s entry into the Philippine market marks a significant milestone in the evolving Philippine-Japanese partnership in the lifestyle and retail sectors. It stands as a prime example of how collaborative efforts between government initiatives and private sector dynamism can lead to mutually beneficial outcomes—fostering economic growth, enhancing consumer options, and driving innovation across industries,” said Department of Trade and Industry (DTI) Secretary Cristina A. Roque.

The DTI secretary and Undersecretary Ceferino Rodolfo met with Adastria Co., Ltd. executives during two separate missions this year, facilitated by the DTI’s field office in Tokyo. The store opening is a product of sustained efforts by the DTI to attract major Japanese retailers to the Philippines.

Meanwhile, Commercial Counselor and Special Trade Representative Dita Angara-Mathay emphasized the significance of the 2022 RTLA amendments in facilitating Adastria’s entry into the Philippines. 

“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 investment requirements for individual stores, the revised RTLA has significantly enhanced the Philippines’ attractiveness to foreign retail investors,” said STR Angara-Mathay.

Boasting 45 brands and a network of 1,282 domestic and 127 international stores, the Adastria achieved net sales exceeding 275.6 billion yen or approximately USD 1.89 billion as of February 2024. Its flagship “niko and…” is known for its unique blend of functionality and creativity, offering lifestyle and fashion products.

To facilitate its entry into the Philippines, Adastria formed a joint venture with the Primer Group of Companies. This venture was established with an initial capitalization of PHP 160 million or approximately USD 2.85 million. It sees Adastria holding a 75% stake and Primer the remaining 25%. This partnership ensures the seamless integration of Adastria’s global brand management standards with Primer’s extensive local market expertise.

As a prominent retail and distribution enterprise in Southeast Asia with a strong presence in the region since 1985, Primer Group has become a leader in the global lifestyle and outdoor brands retail and distribution across Southeast Asia. Its portfolio includes over 150 brands, reflecting its commitment to providing quality products and services to customers in the region.

Adastria emphasized the significance of the Philippine market for the company’s Southeast Asia expansion. This strategic move is driven by the country’s young demographic, growing fashion consciousness, and increasing disposable income. With the support of PTIC Tokyo and Primer Group, Adastria is poised to deliver an exceptional retail and e-commerce experience tailored to Filipino consumers.

With the success of this launch, STR Angara-Mathay shared that Adastria has plans to expand its footprint in the Philippines by opening more “niko and…” stores and strengthening its omnichannel presence. This strategy combines the immersive experience of brick-and-mortar retail with the convenience and reach of e-commerce to ensure a seamless and engaging customer journey.

In addition to Adastria Co., Ltd., Japanese retail giant Nitori also successfully entered the Philippine market earlier this year—a result of ongoing engagement since 2015. Founded in Sapporo, Japan, in 1967, Nitori has grown into a global retail leader with over 800 stores in Japan and more than 200 overseas as of October 2024. Known for its commitment to quality and affordability, Nitori served 340 million customers worldwide in 2023 alone.

Since opening its first Philippine store in April 2024, Nitori has rapidly expanded, with its second store launching in August and its third in October. The company’s initial outlet in the Philippines exceeded sales projections by four times, prompting Nitori to increase its investment in the market. Nitori plans to operate 65 stores across the Philippines by the end of 2032, underscoring the country’s potential as a key growth market.

With this vast economic potential, the DTI secretary reaffirmed the government’s commitment to supporting foreign investment in the retail sector.

“The wholesale and retail trade sector are the backbone of our economy. In 2023, it contributed PHP 4.4 trillion to our gross domestic product and employed over 10.3 million Filipinos. The DTI is committed to ensure that this sector thrives in a Bagong Pilipinas.”

“Together, we will foster sustainable and inclusive growth to empower businesses like Adastria Co., Ltd. to succeed and create quality jobs for all Filipinos,” added the trade chief. ♦

Date of release: 24 December 2024