Sayam International to list on Thai bourse in support of regional expansion plans
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Trading company Sayam International aims to list on the Stock Exchange of Thailand in two to three years to support its ambitious growth in Cambodia, Laos, Myanmar and Vietnam (CLMV).
Chairman Sayam Ramasoot said yesterday that the Asean Economic Community in 2015 would open opportunities for Thai products. Sayam International has an aggressive goal to be the top distributor in CLMV within three to five years from being among the top 5 now.
It has to ensure sufficient funds to support expansion, especially in the cosmetic and skincare businesses. It is the sole distributor for Wuttisak Clinic and Beauty Buffet and Beauty Cottage.
In five years, sales are expected to double from Bt3 billion currently. Trading represents 60 per cent of Sayam’s sales.
The company will allocate about 30 per cent of its sales to growing its trading business. The company is considering listing because being a listed company will help speed growth.
CIMB Thai Bank, which recently opened its first overseas branch in Vientiane, helps Sayam with financial system development as part of listing preparations.
It plans to expand Wuttisak Clinic shops, Beauty Buffet and Beauty Cottage shops in CLMV especially Vietnam, where it is set to open 60 Beauty Buffet shops within three years in order to be the No 1 cosmetic shop operator there.
The company is constructing two shopping malls in Laos in cooperation with local conglomerate Dao Heuang Group.
“We’ve started in Laos even though this country has a small population because we don’t have competitors yet,” he said.
The shopping centre will showcase outlets of Thai brands because Laotians prefer products from Thailand.
“A movie theatre operator in Thailand and a hypermarket from Thailand are interested in leasing space in the shopping malls,” he said.
“Cambodia is the next country where we will build a shopping mall,” he said.
Laos is a strong market for Sayam because of the language and culture. It recently received a licence to issue life and non-life insurance policies for Dhipaya Insurance Group in Laos.
Sales in Laos are rising about 40 per cent per year against 15-20 per cent in the three other countries.
Vietnam is the most challenging market, as it has many laws and some occupations are reserved for only its citizens.
However, Vietnam is the focus of the company because it has a big population.
Myanmar needs three to five years to show potential because the laws there remain unclear.
In Myanmar, Sayam’s business comprises Wuttisak Clinic and Beauty Buffets and Beauty Cottage.
The company has been running a trading business on the Cambodia border since 1996, starting with Thai rice and M-150 energy drinks, before entering Cambodia in 1998 as the official distributor of M-150.
Building bonds with local merchants and co-developing marketing with brand owners are keys to success in CLMV.
Sayam distributes Thai products to 18,000 merchants in Cambodia and some 10,000 merchants in Laos.
“We have shown those brands that we can help distribute their products to customers overseas because we have learned the behaviour of consumers and each market well.
Some manufacturers in Thailand have few product lines, so probably it isn’t worth it for them to distribute by themselves. The trading business is the solution for them,” he said.
Sayam today distributes Thai consumer products including electric appliances and mobile devices in CLMV.
Thai products are recognised for quality by CLMV consumers and many businesses in Thailand should be exploring neighbouring countries.
The company in 2010 extended its distribution service to cosmetics by becoming the exclusive franchisee of Thailand’s beauty and skincare chain Wuttisak Clinic in Laos, Vietnam and Myanmar and becoming the exclusive distributor for Beauty Buffet and Beauty Cottage.
The company is conducting a feasibility study on taking Beauty Buffet and Beauty Cottage to the Philippines.
“When we have a strong footprint in CLMV, we will consider focusing on the countries below Thailand except Singapore, which is too small to penetrate,” he added.
