Casetify Debuts First Flagship, and Upcoming U.S. Expansion Plans

Hong Kong tech accessory brand Casetify has just unveiled its first flagship designed by acclaimed architect Andre Fu on the most coveted street of Osaka, Japan. From humble beginnings as a customizable phone case company 11 years ago, Casetify has become a global powerhouse and a direct-to-consumer unicorn brand today. Also recognizing its remarkable sales and untapped potential, billionaire real estate tycoon and entrepreneur Adrian Cheng invested eight figures into the brand last year.

Currently standing with 27 smaller Casetify Studio stores and a global reach serving 189 countries online, the brand has now opened its inaugural flagship within the vibrant streets of Shinsaibashi in Osaka, Japan. The special launch showcases the collaborative efforts with esteemed architect Andre Fu who has designed a unique retail space, captivating passerby and transcending them into a mesmerizing realm beyond the bustling streets.

Japan: The Next Retail Destination

Expanding its presence in Japan, the Casetify Osaka flagship adds to the existing portfolio of six Casetify Studio boutiques across the country. Strategically positioned in the pulsating lane of Shinsaibashi-suji, this choice of location for the brand’s first flagship holds special significance. Shedding light on the decision, CEO and co-founder Wesley Ng explains, “Whenever you look at Japan, people first think of Tokyo – which is kind of obvious. But if we look at the geographic location of Osaka, it’s actually a prime position between Kyoto and Tokyo.”

Hailed as the shopping mecca, Shinsaibashi-suji is an iconic landmark that has long been dominated by retailers who have cemented themselves with extensive lease agreements. However, the abundance of retail vacancies during the pandemic casted an opportunity for Casetify to share the streets with Apple
AAPL
, Nike
NKE
, Uniqlo and more. Today, the streets come alive and amidst the retail recovery, Osaka’s high street vacancy rate as observed in Q1 2023 has declined after some immediate leasing of several vacancies in the Shinsaibashi-suji shopping district, with accelerated demand from drugstores and duty-free stores due to inbound tourists.

It comes as no surprise that Osaka has been chosen as Casetify’s first landmark location, considering the fervent trend of brands opening flagships in Tokyo during the Olympics 2020. However, with the upcoming 2025 World Exposition set to take place in Osaka, retailers are now realigning their focus towards Japan’s second-largest metropolis, channeling their investments into this emerging hotspot. The robust retail recovery currently witnessed in Japan is exemplified by the proliferation of stores, spurred by the rapid return of overseas visitors since March. Furthermore, the country’s consumer confidence index has witnessed an upswing, buoyed by the recovery of economic activity and rising wages. Simultaneously, Japan has strengthened its trade and tourism relationships with other nations, evidenced by the establishment of an Osaka route by Etihad Airlines and the country’s foray into the realm of casinos, joining its neighboring nations in the big leagues.

Localizing for Japan

Entering the Japanese market has always presented a unique challenge due to its distinct cultural preferences. Embracing minimalistic designs and the understated elegance of the ‘wabi-sabi’ lifestyle, Japanese consumers have a preference that starkly contrasts with Casetify’s bold and vibrant personality.

In pursuit of creating a formidable presence in its inaugural flagship, Wesley Ng invited his good friend, the award-winning architect Andre Fu, to collaborate on the project, despite their differing aesthetics. “During dinner, I half-jokingly asked Andre if he would design our flagship, and to my surprise, he agreed,” recalls Ng. Fu, renowned for his luxurious hospitality designs, Casetify Osaka is the first retail project that the Hong Kong-based architect has created in Japan, bringing a rare artistic vision to this collaboration.

Spanning three floors and 1,399 square feet, the flagship store welcomes customers from the lively streets of Shinsaibashi into a kaleidoscopic room, mirroring the brand’s auspicious colors. Designed as a one-stop-shop for all tech accessories, the flagship store seamlessly blends culture and technology, while celebrating creativity as an embodiment of the brand’s ethos. “There’s a distinct Osaka vibe to it. The store captures the urbanity of Japan with its captivating streetscape and bold graphics,” explains Fu. The architect further explains the store design being interpreted and inspired by traditional Japanese shoji lanterns noting, “There’s a lot of poetry surrounding the shoji – from the craftsmanship and the translucency of it. But also when you think about the shoji, it is equally very graphic,” adds Fu.

Keeping the consumer journey in mind, the store has been meticulously designed with illuminated washi papers, guiding customers from the street level to the upper floor like following a trail of shoji lanterns. The walls unfold one layer after the other to unveil Casetify’s extensive product categories. At the end of their journey, customers approach a little circular window to slide open, revealing their finished customized product. “There is a mentality to go and discover – that is the joy of the brand. It is about discovering newness and allowing people to explore new collaborations, products and all that. I think the backdrop we’ve crafted evokes a journey for all of that to happen.” elucidates Fu.

Investing in the Retail Store

Across the 27 Casetify Studios in Asia, the brand has achieved a yearly sales per square foot average of $1,441, matching other global brands such as Lululemon. Its highest-grossing Casetify Studio location sits at Landmark Hong Kong, which posted a yearly sales average of $2,500 per square foot in 2021 – similar to luxury brands such as Tiffany and Co at $2,951. Reflecting on this achievement, Ng highlights Hong Kong as one of the brand’s strongest markets, citing robust domestic demand and purchasing power, gradually complemented by the return of tourism.

In the new normal, Ng and his team continues to expand with new retail footprints while adapting with learnings and insights from past experiences. The founder attributes its successes to three key elements that have propelled the brand to its current position today. “Firstly, it’s all about the experience. Our customers don’t simply grab a product and leave. They really enjoy the immersive experience at Casetify retail – almost like stepping into a candy store” Ng shares. The founder also emphasizes the importance of instant gratification, as customers can customize their accessories on the spot and claim them within minutes. Lastly, as an active member of Hong Kong’s Mega Arts & Cultural Events Committee, Ng is dedicated to cultivating creativity by positioning Casetify stores as vibrant hubs that foster collaborations with local artists and celebrities.

While already at a remarkable height, Casetify is far from reaching its peak. Already a favorite among celebrities like Kylie Jenner and Instagram influencers, Casetify has its sights set on conquering the US market across its 52 states. Following its successful partnership as the leading tech partner at the Coachella music festival in 2023, the brand witnessed a higher website conversion rate and a 20% increase in collaboration inquiries from California-based brands. “The retail market in the U.S. offers even greater potential for creativity and expansion. It’s bigger, and we can take it to the next level,” shares Ng with enthusiasm.