Following the announcement by Japanese retail chain Daiso that it was commencing activity in Israel, Japanese fashion design and accessories chain Miniso today announced its entry to Israel, where it will be managed by former IKEA Israel CEO Shlomi Gabai. The chain's first branch in Israel will be opened in Tel Aviv in the coming months, and it is planning to open 50 outlets over the next five years, including 10 in the first year at a total investment of NIS 15 million. The stores will have 300-400 square meters each.
The company is promising that over 50% of its products will be sold at prices of up to NIS 20. 5,000 of the chain's 9,000 products will reach Israel in the first stage in categories such as health and beauty; digital, sports, and travel accessories; bags and fashion; home tools; food and beverages; textiles; jewelry; hair; toys; writing devices; and gifts. The company also holds licenses and rights to manufacture branded products based on characters from Disney, Hello Kitty, Bob Sponge, and other old and new hits.
The owners of Miniso Israel are Israeli businesspeople Gonen Cohen, an entrepreneur and businessperson living who has lived in China in recent years, joined by partners and investors (and brothers) Itzik and Sharon Nisanov, co-owners of the Hapoel Tel Aviv soccer team who recently acquired 11 New-Pharm branches; and Gabai, who headed IKEA Israel for over 10 years, and will also be a partner in Miniso's Israeli franchise holder. Gabai has recruited several key figures he worked with at IKEA, including Liora Ehrman Romano as VP business development and marketing and Yigal Siso as VP logistics and operations.
Japanese designer Miyake Junya and Chinese entrepreneur Ye Guofu founded Miniso in Japan in 2013. The chain has 3,500 stores worldwide, and is opening new stores at a rate of 100 a month. Miniso's annual turnover is projected to reach $9 billion in 2018. The chain already has stores in Asia, Germany, Spain, Russia, the US, Canada, Mexico, Brazil, Argentina, Australia, Morocco, South Africa, Madagascar, and other countries.
The development is a disappointment for the Castro-Hoodies group, which also negotiated in recent months to bring the Japanese chain to Israel. The group was led by Hoodies-Carolina Lemki controlling shareholder Yossi Gabison, who hoped to obtain a franchise for the international brand.
Following the boom in local stock stores, such as Max Stock, which was sold last year to Apax Partners, managed by Zehavit Cohen, it appears that competition in the sector is heating up. "Globes" recently reported that South Korean retailer Minigood is likely to start doing business in Israel by opening three stores with prices varying from $1 to $100. It was also reported that Union Group, franchise holder for H&M and Cos in Israel, would operate stores in Israel for Japanese dollar store retailer Daiso.
Miniso was represented in the partnership deal by Advocates Jacob Sarov and Lior Bar-Nir from the M. Firon & Co. law firm. Itzik and Sharon Nisanov were represented by Advocate Moshe Ben Dat.
Published by Globes [online], Israel Business News - www.globes-online.com - on February 15, 2018
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