Sunday, May 25, 2014
Index Living Mall @ Puchong
Aeon to increase investments despite subdued sentiment
Aeon will open its first furniture outlet called the Index Living Mall in Puchong via its 70%-owned joint venture with the Thai-based Index Living Mall, which is the largest furniture retailer in Thailand.
“The products will be sourced from Thailand. The initial capital is about RM10mil,” Poh said.
Index Living Mall has its own manufacturing plant in Thailand and is currently already exporting to other countries with a franchise business as well.
Aeon forms Malaysian JV
Japanese retail giant Aeon and Thailand’s Index Living Mall have joined together in a Malaysian joint venture. Aeon and Index Living Mall will own 70 per cent and 30 per cent, respectively, of the joint venture called Aeon Index Living Sdn Bhd.
The JV plans 20 stores by 2020 with the first to open next year. Index Living Mall is a successful furniture chain likened by some as an Asian answer to Sweden’s Ikea.
For Index Living Mall, which operates special malls entirely devoted to selling furniture not only in Thailand, but also in markets like Vietnam, Myanmar, Nepal, Laos as well as Dubai, the new venture will leverage its brand across the region.
While for Aeon, it will support its goal to become a leader in retail in Asia, it says.
The two companies are optimistic about the new venture citing that Malaysia’s home furnishings market is still fragmented with few international brands. The country’s per capita income is also twice that of Thailand, making the market more attractive.