Thailand-based home retailer Index Living Mall plans to expand internationally with two stores annually opening via franchising on track.

Index will open stores in Patan and Kathmandu in Nepal next year and another two in India and Qatar in 2013.

The Thai retailer is also scheduled to open a third overseas store in Vietnam on Thursday. A 7000sqm store under franchisee to Caophong Corporation will be opened in Ho Chi Minh’s District 4.

The franchisee plans to add another five Index stores in Vietnam within five years.

“The Vietnamese market is very promising. Many condominiums are being developed by foreign investors. Ho Chi Minh City has a population of 10-12 million, so there is the opportunity to open 20 Index outlets over there,” said Kwanchai Kitkongkajornchai, senior VP of Index.

Index has started international expansion when it opened store in Dubai 18 months ago through franchising. It was followed by a store in Cyprus.

“Our business in Dubai is doing very well with 350 million baht in annual sales. As Dubai is a hub in the Middle East, it gives our brand visibility and many investors have contacted us to apply to be franchisees,” Index Living Mall MD Kridchanok Patamasatayasonthi said.

Index focuses overseas operation to reduce local business risks. The retailer was plagued by 450 million baht losses from October to November due to temporary closure of its four stores in Thailand brought by floods.

Despite the losses that Index has encountered in its home country, the retailer will not delay plans to add one store yearly to its current 18 outlets in Thailand.

To boost its domestic sales, Index will allot 350 million baht for marketing activities to reach its target sales of up to 8.6 billion baht.

Index Living Mall was develop in 2002 by its parent company Index Interfurn Group.

GB