Koshidaka Holdings, operator of the Karaoke Manekineko chain, plans to quintuple its Southeast Asian presence to 100 locations from the current 21 as Japan’s demographic decline weighs on domestic growth.
The company reported ¥1.1 billion ($7.48 million) in sales from Malaysia, Thailand and Indonesia for the year ended August 2024, with operating profit reaching ¥118 million. President Hiroshi Koshidaka indicated the company will focus on family-oriented karaoke in mall locations to differentiate from local competitors.
Southeast Asian operations have shown consistent same-store sales growth despite average spending at 70-80% of Japanese levels. The region’s rising incomes and population growth present significant opportunities, with Malaysia’s gross national income per capita climbing 9% since 2019 to $11,710 in 2023.
The Philippines will join Koshidaka’s regional footprint later this year as part of the expansion strategy that also targets the United States. The company’s Hawaiian outlet, Wave808, generates $120,000-$150,000 monthly from just 15 rooms, with average customer spending of $32 – triple the Japanese figure.
“Both expenses and customer spending are three times those in Japan,” Koshidaka noted about the US market, where the company aims to open 100 locations within five years.
Koshidaka Holdings targets consolidated sales of ¥100 billion by fiscal 2026, a 58% increase from fiscal 2023, with international operations projected to contribute about 10% of total revenue.
