Index Living Mall Public Company Limited (ILM) has unveiled a major business strategy over the past few years, involving the expansion of its reach and creating new value for sustainable growth. The Company continues its business diversification strategy, with the latest move being the introduction of a new retail model together with the world-renowned “Flying Tiger Copenhagen” brand with exclusive franchise rights in Thailand. ILM is introducing a three-year plan to open 30 branches of this Danish franchise throughout the country with an investment of approximately 200 million baht to provide shopping experience showcasing a large variety of Scandinavian-design products. The first location is on the 2nd Floor of Emsphere Shopping Center, offering a total of 14 product groups, all featuring distinctive and uniquely fun and creative designs in vibrant colors that are truly functional and affordable, starting at only 35 baht. ILM projects 800 million baht in revenue to be achieved within three years, or by 2027.
Miss Kridchanok Patamasatayasonthi, Managing Director of Index Living Mall Public Company Limited (ILM), Thailand’s leading integrated retailer of furniture, home furnishings and decorative items, revealed that Index Living Mall operates under the “INDEX NextExperience & Beyond + Sustainable Future” strategy, in line with its 3-year (2024-2026) business plan. This strategy adheres to the “triple bottom line” concept with the “3P – Performance–People–Planet” formula, to drive sustainable business growth while moving towards “beyond core business.” This is the initiative that aims to expand beyond ILM’s leadership in the “Living Lifestyle Mall” business by creating new value to drive the business towards truly strong and sustainable growth amidst the challenges and opportunities arising from the current global situation, together with the various factors that contribute to rapid changes in consumer demand and the new business landscape. Therefore, the Company continues to pursue business diversification, synergizing with its core businesses, to diversify its portfolio and drive more robust growth.
- Most significant deal over the last few years: The expansion of the variety and lifestyle retail business model with exclusive franchise rights in Thailand
The Company is transforming the shopping experience with an inspiring and diverse offering of world-renowned Danish brand – “Flying Tiger Copenhagen” – that has started off with a simple concept, but has now become a phenomenon, transforming the way many people shop, and winning the hearts of people around the world, spanning Europe, the Middle East, and Asia. Most recently, the brand has expanded into Thailand with Index Living Mall as the sole franchisee in Thailand. Altogether, “Flying Tiger Copenhagen” has stores in 41 countries worldwide, totaling over 1,000 branches. This latest development has been designed to meet the diverse needs of customers and expand ILM’s customer base to the younger generation. Currently, 80 percent of Index Living Mall’s customer base consists of Gens X to Y, and 10 percent of Gen Z, on average. By introducing a brand that is more amicable to the younger generation, the Company hopes to increase brand recognition, enhance capabilities, and drive sustainable business growth.
- Opportunities and potential of the lifestyle product retailer business
In shopping for variety and lifestyle items since the COVID-19 crisis, shoppers have increasingly searched for gift items and “small joys” that will serve to meaningfully enrich their lives. Furthermore, consumer behavior and purchasing power in relation to variety and lifestyle products have shown some consequential significance (Sources: Euromonitor, Statista, NielsenIQ and Market Estimates – for 2024). This represents a substantial opportunity for the gift and lifestyle product retail market, valued at over 30.3 billion baht in 2024 and has been growing by as much as 7 percent annually.
This fact is clearly evident in the significant growth in purchasing power in relation to this type of merchandise in major cities, including Bangkok, Chiang Mai, Phuket, and Pattaya, as the lifestyle franchise stores experienced a high growth rate of 66.7 percent, clearly demonstrating the high market demand. Furthermore, the positioning of “Flying Tiger Copenhagen” through affordable prices and premium designs, presents an opportunity to expand the retail market and fill a gap with the unique Danish-style products.
- A wide selection of merchandise meets the needs of shoppers of all generations
Currently, the insight of consumers, particularly those in the Millennial and Gen Z groups, tend to appreciate and value fun and innovative lifestyle products with the emphasis on unique designs that lend themselves to distinctive experiences. A survey of shopping trends reveals that around 70 percent of lifestyle shoppers come into stores exploring for something “new” or “surprising”; 50 percent would look for small gift items or souvenirs; and about 45 percent seek products that enhance the enjoyment of daily life. Those in the Gen Z (aged 15-25) group prefer products that are fun, unique, and rewarding to them as individuals, spending an average of 200-350 baht per visit. Young professionals (aged 25-35) focus on home decor, gifts, and other lifestyle items, spending an average of 400-700 baht per visit. Families with children (aged 30-45) focus on toys, party supplies, and seasonal decorations, spending an average of 500-1,000 baht per visit. The deciding factors in purchasing everyday products are to add “feel-good” factor, fun and color to life, and to make every day more meaningful. This is consistent with the “Flying Tiger Copenhagen” brand DNA that embeds ideas and creative concepts in every item that happens to fit in perfectly with Thai culture (perfect cultural fit) in terms of function and daily use.
- Plan is to launch 30 branches in high potential locations nationwide under a 3-year expansion plan
The Company will be implementing a 3-year (2025-2027) expansion plan with an investment budget of 200 million baht, to open 30 “Flying Tiger Copenhagen” branches nationwide, targeting locations within leading shopping centers and Index Living Malls. An average store size is 150 to 250 square meters. The inaugural branch is located at Emsphere Shopping Center in the heart of Bangkok, easily linked to business districts as well as other shopping center hubs such as Siam, Silom, and Asoke. This location, with its 160 square meters of space, is favorable as it generally attracts shoppers with high purchasing power, such as working professionals from surrounding prime office buildings. It also caters to the lifestyles of elite urbanites and international tourists. Five more branches will be launched this year, including ILM Pattaya. Targeted locations at high-traffic shopping malls, such as Fashion Island, Seacon Square, Platinum Fashion Mall, and The Mall Bangkapi.
- Creating inspiration everyday with innovative and unique designs at affordable prices
“Flying Tiger Copenhagen” offers a shopping experience for all generations, carrying more than 1,700 SKUs (stock-keeping units – items) across 14 product categories, including gadgets, games, home decors and kitchenware, hobby and leisure items, stationery, party supplies, children’s toys, communication devices, office supplies, gifts, and seasonal products, etc. This allows every single customer to discover endless inspiration. The unique and distinctive designs of the products are a main appeal, attracting customers to peruse items that catch their fancy. Furthermore, the store integrates sustainability principles, such as using easily disassembled components, promoting the use of recycled materials, and selecting wood or paper products made from wood or pulp from FSC-certified forests. Furthermore, the store promotes environmentally friendly lifestyles, such as the application of recyclable products, so that it can cater to shoppers of diverse lifestyles, and offering simple happiness, starting from just 35 baht up to 500 baht per item.
Take that first major step into an inspiring adventure with “Flying Tiger Copenhagen”, designed with a minimalist approach under the Scandinavian design philosophy. The overall space is airy and comfortable, featuring wood tones, white walls, and warm white lighting. The immaculate layout allows the vibrantly-color products and their innovative designs to stand out, while enhancing the shopping experience with a “maze” format. The store’s one-way entry and exit allow customers to completely navigate the store’s product layout and all items on display. This format encourages customers to explore creative, story-telling items or authentic Danish-inspired decorative items, while enjoying the store’s soothing atmosphere and soft music, and to come upon new inspirations and ultimately discover surprising and exciting products.
Miss Kridchanok further emphasizes, “The branching out to the ‘Flying Tiger Copenhagen’ brand not only enhances ILM’s competitiveness in the Thai retail market but also diversifies and expands the market for variety and lifestyle products. We recognize a gap in the market in which consumers look for easily accessible products. This is a crucial opportunity for us to fill this gap for the new lifestyle by expanding our retail conglomerate into a new segment, and to preserve our position as the leading retailer of furniture, homeware, and home décor. With the strength and strategy of ‘Flying Tiger Copenhagen’ that is committed to delivering creative product ideas that offer fun, value, and a superior shopping experience, I believe it is not difficult to capture the hearts of Thai consumers and bring everyday joy and meaning to all at affordable prices. We are confident that ‘Flying Tiger Copenhagen’ will become a shopping destination for a variety of products and lifestyles for customers of all generations. In this endeavor, we aim to achieve 800 million baht in revenue within three years.”
Mr. Martin Jermiin, Chief Executive Officer of Zebra A/S, operator of the lifestyle retailer “Flying Tiger Copenhagen”, stated, “ ‘Flying Tiger Copenhagen’ is a Danish variety and lifestyle retailer under the brand concept of ‘affordable luxury’. The brand focuses on offering creative experiences and accessible design products at affordable prices for customers worldwide. The company plans to grow through a franchise model and continuously expand into countries around the world, not only in Europe, but also throughout the Middle East and particularly in Asia. Thailand is a target market that we see an opportunity for expansion, as the variety and lifestyle retail business has high potential with strong growth outlook due to increasing purchasing power, urbanization, access to technology, and changing consumer behavior which prioritizes experiences and products with unique and distinctive designs that are aimed at fulfilling everyone’s happiness.
Thailand has long been a market we were eager to enter as part of strengthening our presence across the Asia-Pacific region, and it is with great excitement and confidence that we now take this step with Index Living Mall. With Index Living Mall, we have teamed up with a leading retail operator with a proven track record and a deep understanding of Thai consumers. The warm welcome we received at the opening of our first store in Bangkok has been truly overwhelming and gives us great confidence in what lies ahead. Thailand is not just another market for us, but a key growth destination with an ambitious plan.
“The business collaboration between ‘Flying Tiger Copenhagen’ and ‘Index Living Mall Plc.’ is an essential target of the brand’s growth plan in Asia, including Thailand, to cater to the needs and culture of Thais with fun and creative items and to offer a shopping experience with Danish-style variety and lifestyle products – the first of its kind in this country. ‘Index Living Mall’ has vast experience and strength in the furniture retail business and home decorations, as well as home lifestyle products, including the expansion of the retail business line under ‘Index Living Mall’ brand. The Company has also been around for a long time in Thailand and has a deep understanding of consumer behavior. Therefore, we are confident that ‘Index Living Mall’ will be able to expand the market and create business growth together with us under the ‘Flying Tiger Copenhagen’ brand of variety and lifestyle products that will transform the life to be fun and creative like never before.”
