TOKYO, Oct. 25, 2024 (GLOBE NEWSWIRE) -- Yoshitsu Co., Ltd ("Yoshitsu" or the "Company") (Nasdaq: TKLF), a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, as well as other products in Hong Kong, Japan, North America and the United Kingdom, today announced that on October 16, 2024, the Company, through its wholly-owned Hong Kong subsidiary Tokyo Lifestyle Limited ("Tokyo Lifestyle"), entered into a five-year strategic cooperation agreement (the "Agreement") with Saynoday Limited ("Saynoday"), a Hong Kong-based group specializing in the wholesale and retail of cosmetics and sundry products. This partnership aims to further expand the market presence of Yoshitsu's proprietary "Reiwatakiya" brand in Hong Kong and other key Asian markets. The Agreement reflects the high level of mutual trust between both parties and their confidence in exploring growth opportunities within the beauty and daily necessities sectors in Asia.
Pursuant to the Agreement, Yoshitsu and Saynoday agree to deepen the existing trademark licensing and product supply cooperation in which Yoshitsu has granted Saynoday the right to use the "Reiwatakiya" brand. Under the Agreement, Saynoday commits to procuring high-quality cosmetics and daily necessities from Tokyo Lifestyle, totaling 500 million Hong Kong dollars (approximately US$64.3 million) over the next two years, following an initial procurement of 100 million Hong Kong dollars (approximately US$12.9 million) over the past two years under their current cooperation. Both parties agree to collaborate on brand promotion through resource integration, including optimizing the brand's official website and expanding online sales channels and promotional strategies.
Furthermore, leveraging Tokyo Lifestyle's successful operation of multiple stores in Hong Kong, Saynoday plans to open five new "Reiwatakiya" stores by the end of 2027, with new stores opening each year in strategic shopping districts, including Mong Kok, Tuen Mun, Hong Kong International Airport, and Kowloon. This expansion will add to its two existing franchise stores in Tsuen Wan and Admiralty, further boosting the brand's visibility and market penetration in Hong Kong.
Mr. Mei Kanayama, Principal Executive Officer of Yoshitsu, commented, "We are thrilled to deepen our strategic partnership with Saynoday to enhance brand promotion and market expansion. Each party brings complementary strengths: Saynoday offers vast experience in wholesale and retail operations, with extensive networks in China, Hong Kong, Macao, and other Asian markets, particularly South Korea and Japan. Meanwhile, Tokyo Lifestyle will provide robust support through our strong brand licensing capabilities, extensive retail networks, diverse sales channels, and professional supply chain management, backed by available capital resources. A key component of this collaboration is Tokyo Lifestyle's support in expanding both companies' reach in Asian and global markets, utilizing not only our powerful offline sales network but also our resources in digital marketing and e-commerce platforms, including partnerships with key opinion leaders (KOLs). We believe that this multi-channel approach will foster strong consumer connections and increase the brand's social influence. By leveraging our combined strengths and shared vision, we believe this partnership will elevate Reiwatakiya's brand awareness and market share in core Asian markets and beyond, marking the beginning of a new chapter for both companies in an increasingly competitive landscape."
About Yoshitsu Co., Ltd
Headquartered in Tokyo, Japan, Yoshitsu Co., Ltd is a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, and other products in Hong Kong, Japan, North America, and the United Kingdom. The Company offers various beauty products (including cosmetics, skincare, fragrance, and body care products), health products (including over-the-counter drugs, nutritional supplements, and medical supplies and devices), sundry products (including home goods), and other products (including food and alcoholic beverages). The Company currently sells its products through directly-operated physical stores, through online stores, and to franchise stores and wholesale customers. For more information, please visit the Company's website at https://www.ystbek.co.jp/irlibrary/.
Forward-Looking Statements
Certain statements in this press release are forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and in its other filings with the U.S. Securities and Exchange Commission.
For more information, please contact:
Yoshitsu Co., Ltd
Investor Relations Department
Email: ir@ystbek.co.jp
Ascent Investor Relations LLC
Tina Xiao
President
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
