Korean Minigood retail chain to expand in Israel
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South Korea’s Minigood chain is heading for Israel, where an individual has signed a five-year exclusive franchise agreement.
Daniel Pardilov from the Pardilov & Co law firm, which represents the franchise holder, says the plan is to open at least 10 outlets in the first two years, including three this year.
This news comes on the heels of Japanese “dollar store” chain Daiso planning to enter the Israeli retail market through the Union Group, the franchise holder for Cos and H&M in Israel.
Minigood stores have an average space of 80sqm, but the plan in Israel is for stores covering 120 to 150sqm.
One of the conditions in the agreement with the Israeli franchise holder is for the manufacturing of special products for the Israeli market at the company’s plant in South Korea.
Founded in Seoul by Mike Wu in 2013, Minigood makes and markets bags and clothing, household goods, personal care and cosmetic products, office equipment, digital products and toys. The company’s activity is projected to reach 2000 stores and a sales turnover of more than US$1 billion worldwide by 2020.
Pardilov says the Israeli franchise holder is a businessperson with a real-estate background. He is also negotiating with larger retail groups in order to form a partnership for running the chain.
Outside of South Korea, Minigood has branches in Malaysia and Singapore.
Questions & Answers
Q.How many Minigood stores are planned for Israel initially, and in what timeframe?
How many Minigood stores are planned for Israel initially, and in what timeframe?
The plan is to open at least 10 Minigood outlets in Israel within the first two years. This includes opening three of these stores during the current year.
Q.Who is the Israeli franchise holder for Minigood, and what is their background?
Who is the Israeli franchise holder for Minigood, and what is their background?
The Israeli franchise holder is an individual businessperson with a background in real estate. They are currently in negotiations to form a partnership with larger retail groups to run the chain.
Q.What is unique about the products being sold in Minigood's Israeli stores?
What is unique about the products being sold in Minigood's Israeli stores?
One condition of the franchise agreement is for the manufacturing of special products specifically for the Israeli market. These items will be produced at the company’s plant in South Korea.
Q.How do the planned store sizes in Israel compare to Minigood's typical outlets?
How do the planned store sizes in Israel compare to Minigood's typical outlets?
Minigood stores generally have an average space of 80 square metres. However, the plan for Israel involves larger stores, covering an area between 120 and 150 square metres each.