Index Puts Overseas Franchising On Hold

Bangkok Post:

Index Living Mall Co, the home furniture and furnishing retail chain, will postpone overseas expansion through franchising for two or three years due to global economic uncertainties.

Kijja Pattamasattayasonthi, the company’s managing director, said earlier that the company had held talks with 10 foreign investors who wanted to open Index stores in countries including China, India, Russia and Dubai.

The original plan called for the first overseas franchise to open in Ho Chi Minh City by the middle of this year, with eight branches in Vietnam over the next 10 years.

Apart from inflation and high oil prices, Mr Kijja said, the company wanted to study rules and regulations in each country before moving abroad in order to ensure long-term stability.

Jarintorn Pattamasattayasonthi, the vice-president of Index, said that while overseas franchises were on hold, the company would continue to export its products.

However, export sales have gradually declined to 30% of total sales from 50% earlier. China and Vietnam are Index’s main competitors in the export markets.