JYSK expands Scandinavian quality and style in Vietnam

Fuelled by a local consumer thirst for Scandinavian quality and style, Danish giant JYSK is growing its retail presence in Vietnam

JYSK recently opened a new store on Hanoi’s Lang Ha street, marking its fifth store in the capital city and sixth in the country since the company entered Vietnam in 2015.

Doan Hong Hai, chairman of NeatClean, JYSK’s franchise partner in Vietnam, told VIR, “With a total area of about 700 square metres, the new facility together with other JYSK stores brings a unique and homey Scandinavian style to Vietnamese households, including products of furniture, bedding and decoration.”

These stores are part of JYSK’s plan to open a chain of 10-20 stores in Vietnam by 2020 to capitalise on steady growth rates, a growing consumption base of more than 90 million people, a strategic location in Southeast Asia, a young population, and fast-growing middle class.

“We are seeking favourable locations for four to five other stores in both Hanoi and Ho Chi Minh City this year to meet the growing local demand for lifestyle and interior décor products,” Hai added.

In recent years, Scandinavian-style interior décor has been popular and favoured by Vietnamese consumers.

“I love JYSK products as they are very safe, elegant, and beautiful. JYSK products are now present in every corner of my house,” said Tran Thi Nhung, a 35-year-old resident of Hanoi.

Like Nhung, her friends and colleagues have tended to choose Scandinavian-style interior décor products amid growing concerns about unsafe products in the market.

JYSK and other European companies in Vietnam are also looking forward to the EU-Vietnam Free Trade Agreement (EVFTA), which comes into effect in 2018.

“This FTA will enable us to enjoy import tariff cuts, helping us to reduce prices and gain competitiveness in the Vietnamese market, which has become a magnet to a number of foreign players in the field,” Hai noted.

NeatClean, which was established in April 2015 by founders operating in retail, trade, import-export, and interior décor, has helped develop JYSK’s retail network in Vietnam.

As a leader in the European market of affordable home furnishings solution, JYSK currently has over 2,448 stores in 48 countries across the globe.

The turnover in the financial year 2015/2016 was €3.12 billion ($3.41 billion), according to JYSK’s website.