From 1977 to 2007, J.S. Gill transformed RSH from a singlestore operation into a pan-Asian powerhouse, securing the franchise rights for over 65 internationally-renowned brands spanning sports, golf, lifestyle, athletic and fashion. These included Zara, Massimo Dutti, Mango, Pull & Bear, Ted Baker, Mizuno, Tag Heuer, Reebok, Nike, Adidas, Puma, New Balance, Quiksilver, Billabong and many more.

With a network of 1,150 stores and shop-in-shops across 38 countries, RSH played a pivotal role in shaping the region’s retail landscape, setting new benchmarks for growth and excellence.

Sunny has played a key role in launching the H&M franchise in Southeast Asia and has helped establish 10 retail and food & beverage concepts in the Dubai Mall. Reflecting on the challenges his father faced in 2007, he notes that today, ‘it takes longer to convince brands to open here [Southeast Asia].’ However, under the Gill Capital umbrella, the tide is turning, with global brands increasingly recognising the region’s unparalleled exposure and opportunities.

It seems that Bangkok has become a hot market for luxury brands recently, LVMH have very recently launched Dior Gold House and ‘LV The Place Bangkok,’ both architecturally stand out brand experiences, but appreciate it hasn’t always been top of the agenda. What has been driving this change?

I should start by saying that it has been a long journey to reach this point. We’ve been in retail in the region for 50 years and even as recently as 15 years ago, the region was still seen as a collection of small, disconnected markets or a fragmented market with limited connectivity. Singapore has long been regarded as one of the most mature markets and a showcase for the region. However, over the past decade, Bangkok has transformed into a global destination. I believe that last year, Bangkok was the most-visited city globally. The development of new hotels – particularly luxury properties – has played a key role in attracting affluent travellers. However, it’s not just wealthy tourists fuelling this growth; Thailand itself has a rising affluent population, a trend mirrored across the region, particularly in the Philippines and Indonesia, where residents frequently travel to Bangkok.

This increasing spending power has caught the attention of international brands, including luxury players, who are now recognising the compelling opportunities the market has to offer.

From our perspective, it seems that franchise partnerships are becoming a more strategic consideration for brands looking to grow their global footprint across a wider range of markets. Is this something you’re seeing in Southeast Asia?

In our experience, forming a trusted partnership has consistently been the most effective route into Southeast Asian markets. While the definition of Southeast Asia may vary, it invariably comprises multiple fragmented markets, each with distinct taxation structures, import tariffs and real estate landscapes – making direct entry challenging for brands.

For brands entering directly, the process can be cumbersome. They must establish new entities, recruit talent and build local relationships, all of which come with a steep learning curve and significant costs. A trusted partner eliminates these hurdles, providing a faster, more efficient path to market. This is especially critical in such a diverse and fragmented region.

Beyond operations, cultural and consumer nuances also play a key role. While luxury consumers share similarities globally, the way brands connect and build communities differs by market. For example, in Thailand, the dominant messaging platform is Line, with each shop maintaining its own account to foster micro-communities and direct communication. Cultural preferences also influence product selection and marketing – consumers here tend to be more subtle and conservative. Brands that misinterpret these nuances risk alienating their audience, making it difficult to rebuild trust. A strong local partner helps brands navigate these complexities, ensuring a successful and sustainable market presence.

Is there a real estate angle to this too?

Absolutely. In my view, Thailand boasts some of the best mixed-use destinations in the world, i.e. vibrant spaces that blend living, working and leisure into one ecosystem. These dynamics have garnered a lot of attention and fuelled intense competition. Local landlords are more receptive to working with local entities, such as us, as they find it cumbersome to deal with foreign entities, even if they are big global names. Brands need to focus on what they’re best at, rather than navigating the complexities of the Southeast Asian market, which can detract from what they do well – delivering their product.

So, what sets you and Gill Capital apart in terms of your partnership approach?

We have been around for a long time, so we really understand the market and its nuances. We’ve got a great track record. The fact that we are only focused on retail, and want to remain focused on retail, also sets us apart. We can give our business partners dedicated attention. We’ve also been good at identifying successful brands early on in their evolution and nurturing those relationships until they are ready to explore new international markets. As a family business, which is also fundamental to our approach, we believe in fostering long-term, personal relationships with our partners, some of which go back two to three decades. This means that our values must align with those of our partners. We’ve honoured every commitment we’ve made, our partners trust us, both brands and landlords. The trust we’ve developed with those landlords is absolutely key considering how competitive the market has become, and selecting a partner who can deliver operational excellence is vital – but one that can also secure prime locations is critical to success. For us, reputation supersedes profit, and we believe this sets us apart and has been critical to our longevity and success.

I'm How do you decide which brands you’d like to work with?

Our philosophy is that a product must stand on its own. We evaluate brands through the lens of the consumer to ensure they pass the ‘consumer test.’ This approach has been instrumental in our success, allowing us to identify promising brands early and nurture long-term relationships.

Beyond just initial potential, we look for brands that demonstrate continuous evolution. We need to feel confident in their long-term viability, as sustainable success is key to delivering strong returns for both sides. Our due diligence is extensive – not only assessing performance but also analysing consumer engagement, particularly through social media interactions across the region. A critical question we ask is: Is the brand resonating with our local clientele?

The evaluation process is more rigorous than ever. We ask tough, strategic questions – ones that go beyond traditional metrics. But this is a two-way process. Brands are also evaluating us in greater detail, spending time with us personally and gaining transparency into our operations. In fact, we encourage prospective partners to visit the market independently to assess our operations first-hand. This is the best way to validate our credentials, strength and commitment to excellence at every level.

Can you tell us about how franchise partnerships work, is there a typical structure?

For businesses that are relatively new (around five years old) and looking to expand into new markets, franchising is often a more practical route. Many emerging brands lack the excess capital required for direct entry, not to mention the additional challenges that come with market expansion. Franchise partnerships are a completely different way of doing business, as the brand is putting their trust in a partner to execute what they’ve done in their home market. That’s why having an experienced, trusted partner is absolutely key. How we work, is that we ask the brand for their playbook – with everything we need to know to deliver a store experience exactly as they would if they were operating directly. The brand still has control over branding and marketing, although we do provide advice on what might need to be different, drawing on our extensive consumer insights. There is no investment cost to the brand, as we would have full control of the P&L (profit & loss), and this is why this type of structure can be so appealing to brands.

For us, because of that ‘consumer lens’, we do need product pricing to largely align with that of the brand’s home market. In the luxury space, particularly, consumers travel and know when there are huge price differentials, and we want to respect our customers. Brands may need to absorb part of the import duties in order to better align pricing, but we think this is crucial to driving growth and maintaining sustainable returns. In terms of deal structure, this can vary from deal-to deal and can be based on a discounted wholesale or royalty structure. The length of these partnerships is becoming more important from a return perspective, considering the rising value of the real estate; partnerships typically last a minimum of five years with an option to renew at the end of the term. For us, we want longer-term partnerships as short term doesn’t stack up, it’s why working with consistently evolving brands is important. For brands this is also key, as the diversity of the Southeast Asian market means that it needs to be a mid to long-term play.

Clearly the consumer is absolutely central to your approach, is there anything unique about the wealthy luxury consumer in Southeast Asia that brands should be aware of?

While there may be subtle cultural differences, they are well-acquainted with a wide range of luxury brands and expect the same level of experience in Bangkok or the region as they would in Paris or Milan. Consistency is key – not just in the product itself but in the overall brand experience. The look and feel of the store must reflect the brand’s home market, which is why we invest heavily in our retail spaces to achieve this standard. Before any new store opening, representatives from the brand’s visual merchandising and marketing teams visit to ensure alignment.

However, it’s not just about aesthetics. Service quality and staff expertise must also meet the same high standards. To ensure this, we work closely with our partners to provide comprehensive training. Our senior store employees undergo training in the brand’s home market before the first store launch in our region, with annual follow-ups to maintain consistency.

For us, this level of commitment signals a brand’s true investment in the partnership. If a brand is unwilling to engage in this process, it raises concerns about their long-term commitment – something we take seriously.

What, if any, are the challenges facing brands entering Southeast Asia over the next five years?

The biggest challenge that brands face is access to bestquality real estate; we’re seeing more and more brands competing for the same spaces, ultimately driving rents. Selecting a franchise partner than can deliver this access should be key. This is also creating challenges for us as a franchisee, these rising costs are squeezing our returns. Trying to convince brands that the region is a big enough opportunity has also been a challenge, more so with US brands, which we get considering the size of their home market. But with the likes of LV and Dior making big investments (‘LV The Place Bangkok’ is a first-of-its-kind, 360-degree concept that includes an exhibition, store, café and fine dining restaurant) we’re definitely seeing other luxury brands take note. Geopolitical tensions are obviously very high at present, but I would say the luxury customer base in Southeast Asia is relatively insulated from global shifts, their wealth is largely derived from domestic enterprises. Everyone pulls back in difficult times, but if you know who your consumer is, then you can jump that obstacle.