PETALING JAYA: Fashion retailer Carlo Rino Group Bhd will continue to build a strong foothold in Southeast Asia’s middle-income retail market, widely regarded as one of the most active and resilient consumer segments in the region.

As purchasing power rises and lifestyle expectations evolve, Carlo Rino expects the middle class to continue to shape demand across fashion and accessories.

Group managing director Datuk Seri Chiang Fong Yee said that, for years, Carlo Rino has distinguished itself by delivering stylish, well-crafted products at prices that remain within reach.

He said this ability to pair modern design with everyday affordability has allowed the brand to stay relevant, particularly among consumers who want quality without paying for premium labels.

“Our approach combines trendy and innovative design tailored to regional tastes, continuous category expansion, targeted market campaigns, and a strong online presence powered by social commerce and livestreaming.

“Together, these initiatives help us stay relevant, aspirational and closely connected to today’s evolving mid-income consumers.

“As we mark our 40th anniversary this year, we see this as an opportunity to further strengthen brand visibility and drive sales through targeted campaigns, new product launches and customer-centric initiatives that celebrate Carlo Rino’s heritage as a homegrown brand,” Chiang told SunBiz.

He said tourism-related initiatives, such as Visit Malaysia 2026, could provide additional upside, allowing Carlo Rino to further capitalise on the growing Southeast Asian middle-income segment.

“Our products are well-suited for tourists, and many of our outlets are located in key tourist malls and high-traffic locations, enabling us to benefit from increased footfall.

This positions Carlo Rino well to capture both domestic and tourist spending while continuing to expand our reach across the Southeast Asia region through digital channels,” Chiang said.

When asked to elaborate on Carlo Rino’s proposed transfer from the ACE Market to the Main Market of Bursa Malaysia, Chiang said the exercise represents another key milestone in Carlo Rino’s corporate journey, following the company’s listings on the LEAP Market in 2018 and the ACE Market in December 2024.

The exercise reflects the group’s progress and readiness in meeting the relevant requirements for a Main Market listing, as well as the evolution of Carlo Rino’s business scale and capabilities, he added.

“The transfer is expected to strengthen Carlo Rino’s standing in the capital market by improving visibility and access to a wider investor base, including institutional investors, while enhancing the marketability of its shares. It also provides a stronger platform for sustainable expansion and reinforces confidence among key stakeholders as the group continues to execute its long-term growth strategy,“ Chiang said.

With Q1 FY26 revenue up 10.9% to RM22 million and e-commerce surging 43.9%, Chiang said Carlo Rino is focused on executing a strategy centred on sustainable growth across its retail and e-commerce channels, with an emphasis on building long-term value.

“The group continues to see encouraging traction from its omnichannel initiatives, supported by continued efforts in product innovation and customer engagement.
“Our new flagship store will play an important role in supporting the group’s growth strategy. Once operational, it is expected to complement our existing retail network and enhance our presence and customer experience.

“Our new flagship store will go beyond retail to serve as a brand experience centre, allowing customers to explore our latest lifestyle offerings, including the Crystal Care skincare collection and diffuser range. The store is designed to deepen customer engagement, strengthen loyalty, and reinforce our brand presence across key markets.”

Chiang said Carlo Rino is focusing on initiatives to optimise the end-to-end supply chain, strengthen operational resilience and support sustainable growth amid rising costs, inflation at 1.3% to 2%, e-invoicing rollouts and fast-fashion sustainability pressures such as overproduction and ethical sourcing.

The initiatives include enhanced forecasting, collaborative planning and data-driven demand insights.

“We are also advancing digitalisation and aligning with e-invoicing requirements, while carefully managing operational costs to ensure efficiency without compromising quality. In parallel, responsible sourcing and balanced inventory management remain central to our strategy, enabling us to maintain product availability and service excellence.

“By leveraging internal data and research, we aim to build a more resilient, agile, and future-ready organisation that can adapt to evolving market demands,” Chiang said.

“Another key strength underpinning these efforts is our asset-light business model, which provides greater cost control, flexibility, and operational agility. This allows us to adjust more quickly to changes in cost structures without being burdened by heavy fixed assets, supporting more disciplined cost management.”

Chiang said Carlo Rino’s omnichannel ecosystem remains a significant driver of customer engagement, and 2026 will see further focus in this area.

“We plan to enhance boutique experiences and visual merchandising, carry out selective refurbishments, align store environments with global retail trends, with the objective of delivering a more engaging and immersive in-store experience for our customers.

“We are also strengthening our presence on Shopee, TikTok Shop and other relevant platforms through expanding live commerce sessions, influencer and KOL affiliate programmes, while improving cross-border fulfilment capabilities.

“These initiatives are part of a broader strategy to grow international e-commerce contributions in a sustainable and customer-focused manner.”

Chiang said Carlo Rino remains confident in navigating challenges such as global supply chain disruption, currency fluctuations and US tariff hikes.

“By diversifying our sourcing and strengthening our supplier network, we are able to maintain operational resilience while continuing to deliver engaging and seamless experiences to our customers. These measures position the group to manage external uncertainties effectively and support our ongoing growth strategy into 2026 and beyond,“ he added.

 The Sun Malaysia