QL Resources, which produces chicken eggs and seafood surimi, is set to launch a Malaysia FamilyMart network.

The company says it plans to open 300 outlets within five years, with the first to be up and running by the end of this year. That will trigger a battle with fellow Japanese convenience store chain 7-Eleven and local startup Bison Incorporated which plans to use the funds from an upcoming IPO to open 150 new stores by 2017.

QL Resources says its wholly owned subsidiary Maxincome Resources has signed the area master franchise agreement for the development and running of FamilyMart convenience stores in Malaysia. The 20-year agreement is renewable for subsequent periods of 20 years, each at Maxincome’s option, and becomes conditional once the company has registered as a franchisee with Ministry of Domestic Trade, Co-operatives and Consumerism.

FamilyMart sees the move into Malaysia as an “exciting opportunity” given the country’s growing economy and consumer spending.

Both parties seem to agree the launch will have a long gestation period, understandable given the current state of the convenience store industry in Malaysia.

7-Eleven Malaysia dominates the market, with a share of around 82 per cent, through  more than 1900 stores nationwide and with an expansion rate of about 200 annually at present..

Smaller rival Bison has about 240 newsstands and convenience stores under its brands, which include myNews, Newsplus, MagBit and The Front Page. It also runs WHSmith outlets in Malaysia, in a joint venture with UK’s WH Smith Plc.

QL Resources says the launch of FamilyMart will open up bigger growth opportunities in the consumer market for the whole group. “It fits into our strategy of strengthening and expanding integration of the group’s value chain.”

It cites such favourable factors as Malaysia’s increasing urbanisation and per-capita consumption, young population demographic, and a growing trend of proximity and convenience retail.

Globally, FamilyMart had 17,540 stores in seven countries as at March 31, and is known for its range of ready-to-eat food and beverage offerings as well as convenience items.

“FamilyMart’s philosophy and values resonate with QL Resources’ mission of providing nourishing agro-based products,” QL Resources says in a statement. “Their emphasis of delivering quality food is also a value that QL Resources, as a food company, values and sees synergy in.”