The first challenge –
Target strong markets
Koshidaka is taking on the challenge of expanding our Karaoke Business outside Japan. The first step is the establishment of a multi-location business model for operations in South Korea and Singapore. Both are among the strongest markets of Southeast Asia due to the high level of consumer spending and population growth in younger age segments. Once the karaoke culture is firmly entrenched in this region, we plan to move on to the next challenge: global expansion.
Our Karaoke Business is expanding rapidly overseas with 12 stores now operating in South Korea. In Singapore, we purchased a well-known local karaoke chain and have completed the conversion of all locations to the Manekineko format. In 2018, we opened a karaoke facility in the residential suburb of Tampines, raising our Singapore karaoke network to 10 locations. Our concept of providing friendly, welcoming places to enjoy karaoke that offer a safe environment and a full range of unique services for a reasonable price is taking root in the local communities. This is driving steady increases in both customer numbers and sales, which has helped us to become profitable for the entire fiscal year. In July 2018, we purchased a karaoke facility in Malaysia and will begin direct operations using the Manekineko format by the end of 2018. Countries across South East Asia are experiencing economic growth, strong consumer confidence and an increasing population of young people, who are the majority of karaoke fans. In the years to come, we hope to open stores in Thailand, Indonesia, the Philippines, Vietnam and other Southeast Asian countries with the goal of building a sound earnings structure. Furthermore, we will continue business trials with our sights on the global market, including the possibility of starting operations in Europe and the United States.
Our unique style of hospitality is also gaining a strong reputation overseas.
The basic philosophy behind our karaoke stores of providing friendly, welcoming stores that offer a safe environment and a full range of unique services for a reasonable price is gaining a strong reputation among overseas customers, increasing the fan base behind the Koshidaka brand. Courteous, professional customer service and stores with a clean modern interior are steadily gaining in popularity and attracting more and more customers.
The attraction of friendly, welcoming stores that offer a safe environment and a full range of unique services for a reasonable price is taking root among local karaoke fans. The courteous, professional level of service that Japan is renowned for, customer service that makes customers smile and clean stores that give a sense of freshness are garnering a favorable impression as an entirely new level of high-quality karaoke boxes and is helping to raise recognition of the “Manekineko Brand”, which is promoted for our overseas business. The potential demand for karaoke in the overseas market is extremely high and we believe that opportunities for further business expansion will increase significantly if we are able to develop stores that offer the same level of products and services that we have refined here in Japan. It is our aim to establish our brand image in Singapore, a country known as the showroom of South East Asia and a center for culture and fashion, as we look to further grow our overseas operations.