Chansawang Herbal Lines eyes Bt100m programme
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Thai cosmetics company Chansawang Herbal Lines requires an investment budget of no less than Bt100 million to expand its franchise business in Asean, said Kanchon Chansawang, the founder and president of the company.
She said the company had penetrated overseas markets for six years by joining state agencies at exhibitions, and Thai herbal products had attracted interest in international markets.
Unlike in the past, Thai state agencies have truly prepared themselves well to encourage small and medium-sized enterprises to go abroad and help them improve their production processes and marketing, she said.
“Our product has become known in several countries, especially in Asean, from the exhibitions. We are not only an original equipment manufacturer but also distribute products at our Chansawang Beauty Centres outside the country,” she said.
However, sales revenue from international markets represents only 15 per cent, while the margin from OEM is smaller than from franchises. Therefore, the company wants to grow its franchise business quickly, focusing on Asean because people in neighbouring countries are familiar with Chansawang products.
The company distributes its Thai herbal products through merchant partners and at its 500 Chansawang Beauty Centre franchises in Thailand. It now also has Chansawang Beauty Centres in Germany, Laos and Myanmar.
“The Beauty Centres are very important because we have to educate consumers about Thai herbal products, as some herbs might have side effects on the skin. The Beauty Centres can help customers improve their complexions with herbal products,” she said.
The company will grant a franchise when a merchant who distributes Chansawang products has shown sustainable sales for a year or two.
As the company prepares to expand its franchise business, it needs sufficient funds for such things as marketing. Its total investment is expected to be around Bt80 million to Bt100 million, half from bank loans.
The focus markets are China and four countries in Asean: Myanmar, Cambodia, Malaysia and Laos.
Sales revenue from international markets including OEM is expected to rise to 30 per cent of the total within the next two or three years, Kanchon said.
