Japanese thrift store chain Komehyo Holdings is accelerating its efforts to expand its business overseas, capitalizing on growing interest in a circular economy focused on minimizing waste.
The company hopes to become the world’s largest retailer of pre-owned luxury brand goods by tripling its overseas sales in four years from about ¥10 billion now and increasing them to ¥150 billion in the future.
Komehyo started as a clothing seller after the end of World War II.
Domestic sales of branded goods, mainly used luxury brand products, reached a record high of ¥114.3 billion in the fiscal year ending March 2024.
The company opened its first overseas branch in China in September 2018 and currently operates 21 stores, including in Taiwan, Singapore and Thailand. In April this year, Komehyo set up a branch in Hong Kong to oversee its Asian operations.
“We are the only ones in the industry seriously considering global expansion,” said Hideo Takeo, head of Komehyo’s overseas operations.
Second-hand stores overseas tend to be small and have items in specific sectors, while Komehyo sells a wide range of branded items, Takeo said. “We lose in one category, but we can win overall,” he said.
Komehyo can also leverage the vast amount of sales data collected to date.
Takeo said the company can easily buy saleable products based on its sales data, including products from visitors to Japan that are growing rapidly. He stressed that the company is “different from stores that rely on speculation.”
The image of used products has improved, especially among young people. A growing number of consumers abroad prefer second-hand products to goods that were previously loved and cared for.
Takeo indicated that it would like to expand into North America and Europe.
