Japanese furniture retailer Nitori is ramping up its presence in Asia in response to a prolonged spending slump in China, planning to double its stores in the region by next March year, reports Nikkei Asia.

Masanori Takeda, Nitori’s VP overseeing overseas sales, shared his concerns about China’s economic slowdown. 

“The consumption slump has only just begun and will continue for a while,” Takeda told Nikkei Asia, noting that customers are increasingly hesitant to make purchases of furniture and durable goods. 

To mitigate the effects of the downturn in China, the company has entered four new markets this year: the Philippines in April and Indonesia in July, Singapore this month, and Mumbai, India, by December.

Next year, Nitori aims to operate 50 stores across Southeast Asia and India, up from 19 last year.

“Sales have been much stronger than expected,” added Takeda, highlighting that the Philippines – in particular – has exceeded expectations with sales “four times higher than originally aimed.” 

Despite the challenges in China, Nitori still views the market as essential for long-term growth, with plans to open 49 new stores in the country this fiscal year. However, it had to implement significant price cuts to maintain competitiveness, offering 20 to 70 per cent discounts on its products.

“Those who can sell it cheaply will survive,” said Takeda.