{"id":1327,"date":"2026-07-04T23:33:39","date_gmt":"2026-07-04T14:33:39","guid":{"rendered":"https:\/\/india-marketing.jp\/?post_type=vietnam-news&p=1327"},"modified":"2026-08-02T01:20:05","modified_gmt":"2026-08-01T16:20:05","slug":"locknlock-vietnam-franchise","status":"publish","type":"vietnam-news","link":"https:\/\/india-marketing.jp\/en\/vietnam-news\/locknlock-vietnam-franchise\/","title":{"rendered":"LocknLock shifts from directly operated stores to franchising: what Japanese housewares makers can read about reaching the provinces"},"content":{"rendered":"
\nThis article is based on what we could verify As of August 1, 2026<\/strong> This article is based on public materials and news reports from Vietnam. Vietnam's tax system, regulations, and administrative divisions change frequently, so information here may have been updated since publication. For actual business decisions, please confirm the latest details with the relevant government authorities or local experts as primary sources.\n<\/div>\n\n\n

South Korean household goods brand LocknLock has shifted the center of gravity of its Vietnam sales network from directly operated stores toward a franchise (FC) model, and has moved in earnest to recruit partners in provincial cities across the country. In late June 2026, several Vietnamese economic media outlets reported on the company's FC partner recruitment, and new stores are already opening in provincial cities such as Can Tho, Vinh Long, and Nha Trang. After nearly 20 years of using Vietnam as a manufacturing and export base, this South Korean brand has finally gotten serious about penetrating provincial areas as a \"country to sell in,\" not just \"a country to make in.\" For Japanese manufacturers considering expansion in Vietnam for household goods and kitchenware, this move is a concrete reference point for thinking about how to extend from a city center built up through directly operated stores out into the provinces.<\/p>\n\n

From directly operated stores to FC \u2014 the move LocknLock made<\/h2>\n

At the heart of this reported move is the fact that LocknLock has opened up its nationwide sales network, previously centered on directly operated stores and wholesale, to an FC system that incorporates local partners. The company is recruiting franchise partners among individual proprietors, small businesses, and companies that understand their local market and have suitable properties. It has already opened stores in provincial cities that were previously hard to reach through directly operated stores, including Can Tho in the south, Vinh Long in the Mekong Delta, and Nha Trang on the south-central coast.<\/p>\n

The FC model is flexibly designed with multiple store sizes \u2014 30, 50, and 200 square meters \u2014 so partners can choose a scale to match their capital and location. It is characterized by the ability to vary the store format according to the local trading area, from small street-front shops to large sections inside department stores or malls. The product lineup covers everyday life comprehensively, including storage containers, insulated bottles, pots and pans, kitchenware, small appliances, personal care items, and travel goods.<\/p>\n\n

Why is \"a country to make in\" becoming \"a country to sell in\"?<\/h2>\n

LocknLock's history in Vietnam is rich with implications that Japanese manufacturers tend to overlook. The company was founded in South Korea in 1978 and entered Vietnam in 2005-2006. It subsequently built plants mainly in the south, establishing a total of four production bases in Dong Nai Province and Ba Ria-Vung Tau Province. Its first resin products plant went into full operation in 2009, and it has also made additional investment in a heat-resistant glass plant. Vietnam has served as LocknLock's global production hub, with roughly 80% of locally made products said to be exported.<\/p>\n

In other words, LocknLock first used Vietnam as a base to \"make cheaply and sell to the world,\" and from there grew its domestic sales by tracking the expansion of the local middle class. According to local reports, the company's domestic sales in Vietnam were around $60 million in 2022 and around $61 million in 2023. While it built a showroom-style directly operated network centered on Ho Chi Minh City, Hanoi, and Da Nang in urban areas, filling every corner of the provinces with directly operated stores is costly. Switching to FC here is a natural progression for a company that has put down roots as a manufacturing base to seek its next growth in domestic provincial consumption.<\/p>\n\n

Differences in cost structure between directly operated stores and FC in provincial expansion<\/h2>\n

When opening a directly operated store in the provinces, the head office bears the full burden of property acquisition, fit-out, inventory, and labor costs, and fixed costs weigh more heavily the slower a provincial store is to get up and running. With FC, by contrast, the franchisee bears the property, initial investment, and day-to-day operations, allowing the head office to focus on supplying products, brand management, and training. To target the same 100 provincial stores, FC tends to be more advantageous on both capital burden and speed.<\/p>\n\n\n
Aspect<\/th>Directly operated model<\/th>Franchise model<\/th><\/tr><\/thead>\n
Property and initial investment<\/td>Fully borne by head office<\/td>Borne by the franchise partner<\/td><\/tr>\n
Speed of provincial expansion<\/td>Slow due to capital constraints<\/td>Accelerated by local capital<\/td><\/tr>\n
What the head office focuses on<\/td>Handles everything down to store operations<\/td>Product supply, training, brand management<\/td><\/tr>\n
Knowledge of the local trading area<\/td>Built up from scratch by the head office<\/td>Leverages the local partner's knowledge of the ground<\/td><\/tr>\n<\/tbody>\n<\/table>\n

LocknLock's use of graduated store sizes from 30 to 200 square meters can be read as a concrete embodiment of this design of \"borrowing local capital and local knowledge.\" In provincial cities, prime spots in large malls are often unavailable, and the flexibility to start from a small street-front unit lowers the barrier to joining as a franchisee.<\/p>\n\n

Reaction locally and in the industry<\/h2>\n

Vietnamese economic media have covered this move as a symbolic case of \"a South Korean household goods brand coming down to the provinces.\" One business publication highlighted, as reassurance for prospective franchisees, that the head office handles everything from site research to store design, product display, staff training, and promotional support.<\/p>\n

Among small retailers in the provinces, there is said to be strong interest in FC opportunities to handle genuine household goods brands. Counterfeit goods and unbranded products of uneven quality are common in provincial markets in Vietnam, and local commercial sources say that being able to sell \"the real thing with a brand guarantee\" is itself a differentiator. At the same time, there are also cautious views that inventory turnover and how to read local consumers' price sensitivity will be a challenge for franchisees.<\/p>\n\n

Implications for Japanese household goods makers<\/h2>\n

LocknLock's move offers a clear, actionable idea for Japanese household goods and kitchenware makers considering expansion in Vietnam. It is the sequence of \"once you have secured the city center with directly operated stores or mall outlets, don't take on the provinces yourself \u2014 capture the area through FC or distributors.\" Japanese makers have strengths in brand quality and product development, but they fall short of local operators when it comes to on-the-ground knowledge and securing properties in Vietnam's provincial trading areas. Trying to fill that gap alone leads to prolonged losses, especially in provincial stores.<\/p>\n

As a concrete first step, makers should narrow down which of their own product categories will resonate with the provincial middle class. Just as LocknLock has built its offering around staples bought repeatedly in daily life, such as storage containers and insulated bottles, Japanese makers too should build an FC package around items that are \"used every day in the provinces, with repeat-purchase demand,\" making it easier for franchisees to sell and for inventory to turn over. The idea of offering sizes starting from the 30-square-meter class to lower the barrier to initial investment can be applied directly. It is practical to design the roles separately: directly operated urban stores as a showcase for the brand experience, and provincial FC stores for expanding coverage.<\/p>\n\n

Impact on the retail industry and market<\/h2>\n

LocknLock's shift to provincial FC is also part of a broader trend in Vietnamese retail moving from an urban concentration toward provincial dispersion. In Vietnam as well, restaurant chains and retailers are accelerating store openings in provincial cities. The case of KFC greatly increasing its provincial stores from 74 to 196<\/a> and the move by WinCommerce, whose rural-style mini-supermarkets accounted for more than 80% of its net new stores<\/a> both show that the center of gravity of consumption is shifting to the provinces. Household goods FC is riding the same wave.<\/p>\n

This provincial shift is also proceeding hand in hand with growing e-commerce. The phenomenon of convenience stores and mini-supermarkets surging in the provinces and overtaking urban areas<\/a> shows that the provincial middle class shops both in physical stores and online. LocknLock also runs official storefronts on the major e-commerce platforms Shopee, Lazada, and Tiki, and combining provincial FC stores with e-commerce is expected to become the standard way of covering the market going forward. For Japanese makers as well, the perspective of designing FC store openings and e-commerce marketplace listings as a set is essential.<\/p>\n\n

Practical information: checkpoints when considering entry<\/h2>\n

Here are the practical points that Japanese makers considering an FC or distributor network for household goods in Vietnam should check before starting.<\/p>\n