Key facts
- Nitori Holdings will open more small stores in mainland China.
- The company will emphasize household items less affected by the property market downturn.
- Nitori plans to have 900 stores in China by 2032.
- The retailer's strategy includes a focus on kitchenware.
- Nitori's China base was established in Shanghai in 2021.
- The company aims for 3,000 stores worldwide by 2032.
Japanese retailer Nitori Holdings is shifting its strategy for mainland China, planning to open more smaller stores and focus on household items like kitchenware that are less vulnerable to the country's property market slump. The company aims to significantly increase its presence in China, with plans to operate 900 stores in the market by 2032, as part of a broader global expansion targeting 3,000 stores worldwide by the same year.
Nitori's approach in China diverges from its larger store formats in Japan. The new stores will be small to medium-sized and community-focused. The company opened its 106th China outlet in Shanghai in February 2024, and plans to have 100 stores in Shanghai alone by 2032. As of January 8, 2024, Nitori had 93 stores in China. The company established its China base in Shanghai in 2021 to manage local operations, strengthen its supply chain, and conduct research and development.
To counter growth pressures in China's home furnishing sector, Nitori has introduced products with higher consumption frequency, such as shoes, clothing, and pet food. The company also employs a localization strategy, with nearly 60% of merchandise designed based on local consumer preferences, incorporating traditional Chinese design elements. Nitori also operates flagship stores on Taobao and Tmall, and ships directly from logistics centers to customers, a model that offers cost-effective delivery and appeals to consumers with free shipping perks. Despite these efforts, Nitori faces significant competition from rivals like IKEA in the Chinese market.