Blue Pin boosts regional presence

Blue Pin is also looking for business opportunities in Indonesia, Malaysia and the Philippines, although it accepts its range of fashion clothing would have a limited market because of the predominance of Muslims in the first two of these countries. The Philippines also has a large Muslim population.
The company also has three shops in department stores in Singapore. However, business has not been a great success, as Singaporean consumers prefer to buy famous brand names, particularly global ones.
The company has six brands: blueconor, Classify, Portland, Axara, Celio and Lily.
Blue Pin is not only looking towards the single market when the AEC is implemented in 2015, but also to the wider Asian market stemming from Asean’s free-trade agreements with China, South Korea and Japan, which come fully into effect at the same time.
However, it acknowledges this is a double-edged sword, as it will create not only opportunities for Thai enterprises, but also for companies in other Asean member states to enter the local market and seize share.
Managing director Chan Kanok-valeewong yesterday said the business in Myanmar was doing well, through eight outlets in Mandalay, Yangon and Nay Pyi Taw.
The company has been surprised that many Myanmar people have not been deterred by the price of the company’s shirts being much the same as in Thailand, where they retail for Bt1,400 apiece.
“Purchasing power in Myanmar is growing in line with its leaders opening the door for more democracy,” Chan said.

TRADEMARK REGISTRATION
To facilitate expansion in Asean, the company has applied for trademark and copyright registration in targeted markets in a bid to minimise the risk of counterfeit items.
Chan added that while AEC zero tariffs and other trade facilitation had persuaded the company to expand its export market, it also needed to diversify risk from the entry of brands from Asean and China in the domestic market.
Some global clothing brands produced in China, such as Zara and MNG, have already accessed the Thai market and seized share from local brands.
Blue Pin is, therefore, still concentrating on the home market and hopes to create deeper brand loyalty among consumers, Chan said.
Until recently, the company was a manufacturer as well as a trader, but it now manages only the design, merchandising and trading centre side of operations, leaving manufacturing to subcontractors.
“Our manufacturing plant can be called a mini-factory, with only 30 sewing machines to produce sample pieces,” Chan said.
Over the past four to five years, the company has had to revamp its business vision, as it was faced with rising production costs and a labour shortage.
As a result, Blue Pin decided to downsize its manufacturing plant gradually, a strategy that has enabled it to reduce the burden of rising wages.
The use of subcontractor manufacturing has allowed Blue Pin to select a suitable producer for each design instead of having its own skilled labour to fit each type of fashion apparel, thus reducing manufacturing costs, said Chan.
The company, which manages 12 shops and more than 60 counters in Thailand, was hit by last year’s flood crisis, which dented sales for two months as purchasing power was reduced.
Blue Pin, which generated sales of Bt700 million to Bt800 million last year, has set an average annual growth target of 15 per cent.