Adastria Co. Ltd., a leading Japanese lifestyle and fashion retailer, opened its flagship “niko and…” store in the Philippines at the SM Mall of Asia on Dec. 12, 2024, underscoring the Philippines’ growing appeal as a prime destination for retail investment.
“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 Roque.
The launch follows sustained engagement by the DTI to attract major Japanese retailers.
DTI Undersecretary Ceferino Rodolfo met with Adastria executives during two missions earlier this year, with the DTI’s Tokyo field office facilitating the discussions.
Commercial counselor and special trade representative Dita Angara-Mathay credited the 2022 Retail Trade Liberalization Act (RTLA) amendments for easing Adastria’s market entry. Othel V. Campos
“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,” Angara-Mathay said.
Adastria operates 45 brands across 1,282 domestic and 127 international stores, with net sales of 275.6 billion yen ($1.89 billion) as of February 2024.
Its niko and… brand, known for its fusion of functionality and creativity, offers a range of lifestyle and fashion products.
Adastria teamed up with the Primer Group of Companies in a joint venture with an initial capitalization of P160 million.
With Adastria holding a 75-percent stake and Primer’s 25 percent, the collaboration merges Adastria’s global brand standards with Primer’s deep understanding of the local market.
The company plans to open more niko and… stores and strengthen its omnichannel presence, to offer an immersive experience of physical retail with e-commerce convenience.
Japanese home furnishings giant Nitori also entered the Philippine market in April 2024. Since then, Nitori has opened three stores, with plans to reach 65 outlets nationwide by 2032. Its rapid expansion was spurred by strong initial sales, which exceeded projections by four times.
