Padini Holdings brings Vincci brand to Indonesia as part of global expansion

The 10-year deal, which will see as many as 25 new stores in Indonesia, is part of Padini Holdings larger ambition to expand globally, the company said in an email to Campaign Asia-Pacific. 

Lisa Liong, Padini's A&P manager, said. "Indonesia is a market that FJB knows well, having established a presence there for 30 years. They have done an incredible job building up foreign brands in Indonesia and we believe they can do the same for Vincci."

FJ Benajmin did not respond to an email query sent by Campaign Asia-Pacific. 

"The benefit in partnering with proven operator like FJ Benjamin is twofold; it assists them to negate market pitfalls and ensures their brand is optimally presented at retail. On paper, this reads as a smart move for all," says Simon Bell, director of strategy, Landor. 

FJ Benjamin’s country associate PT Gilang Agung Persada, which retails its brands including Banana Republic, Gap, Guess and La Senza, will retail the Vincci brand.

Brand Union's Graham Hitchmough, regional director, ASEAN, said, "Given the popularity of the name and styling of Vincci in Malaysia and with the practical support of strategic partners on the ground in Indonesia, it looks to be a good move for all concerned."

At stake is a thriving retail market. In June, retail sales grew 13.6 per cent compared to a year ago, even as retail sales in other parts of the world slowed.

Over the past year, several brands have been showing keen interest in the Indonesia market.

In March, Indian watch and lifestyle company Titan announced that it was keen to enter the region. French premium department store Galleries Lafayette is also expected to start operations in Indonesia by 2013. 

"Clearly there is a great opportunity for affordable / mass premium fashion and lifestyle brands to take advantage of the growing middle class, levels of disposable income and development of high end retail malls across Indonesia," Hitchmough said.

Even luxury brands, though, are setting their sights on the Indonesian market. Prada is said to be opening a store in Jakarta's Plaza Indonesia Mall, and others including Fendi, Max Mara and Michael Kors are expected to follow suit.