Fashion firm set to cash in on AEC
Reno (Thailand) Co, the producer of fashion apparel under its seven brands including AIIZ, is keying in on the Asean market, hoping it will help double its sales after the opening of the Asean Economic Community in 2015.
From 2013-15, the Asean market is expected to generate sales of between Bt3 billion and Bt4 billion for the company. Currently, the overseas market contributes 18 per cent to its total sales, which are projected to expand 25 per cent from Bt4 billion last year.
Chief executive officer Piya Thanakitamnuay said the Asean market had great potential because no fashion brand had emerged as the leader in the 10 member states. Among them, Thailand has been the most outstanding in this industry.
The AIIZ brand is regionally known among foreign tourists. Also, it is sold via distributors in neighbouring nations. Reno is in talks with retailers about opening its outlets in their countries, Piya said. They include Indonesia, Vietnam and Dubai. The deals will be finalised over three months. The business might be operated through a joint venture or a franchise with local partners.
Even with a wider market, the firm has no plan to set up its own plant, he said. It subcontracts to professional producers in lower-cost countries such as China, Vietnam and Myanmar to make its products more price-competitive.
The firm started expanding abroad in the past decade via distributors in Dubai, Indonesia, Malaysia, Singapore, Laos, Myanmar and the Middle East so that it could study the business environment in each country.
Its 17 years of accumulated experience in the local market makes the company even more able to compete with rivals flocking into the country, Piya said.
However, local brands understand consumers’ demands, especially when it comes to regional expansion, better than foreign peers.
Currently, 75 per cent of its clients are Thais.
AIIZ is available at 600 sales points in Thailand. Next year, 40-50 AIIZ shops will be opened at a cost of Bt30 million to Bt50 million each. They will be 1,000-2,000 square metres in size, up to 10 times as big as its initial format of mainly 200sqm, he said.
