FN Factory Outlet aims to become tourist destinations

“I don’t want the FN outlets to be just a stop for travellers. FN should be a recognised brand so that it will become one of the destinations for a visit to enjoy shopping, relaxing or dining,” said Benyiam Songwatana, CEO of FN Factory Outlet.

After becoming chief executive officer of FN Factory Outlet more than a year ago, Benyiam, from the second generation of the founder, is designing a new model for its factory outlet business. 

Among the seven branches, the company is renovating three in Pak Chong, Hua Hin and Sri Racha at a total cost of about Bt100 million. The others are in Phetchaburi, Sing Buri, Kanchanaburi and Pattaya. 

When the Pak Chong branch in Nakhon Ratchasima province re-launches in December, it will offer new attractions for visitors, including categories of products to meet the variety of consumer lifestyles from teen and casual to formal collections. 

There is no conflict or competition among product brands in each category. Customers can mix and match to suit their lifestyles and personalities. The company is also negotiating with a leading luxury fashion retailer to deliver a large selection of brand names for shopping frenzy.

Pak Chong’s retail space will be expanded 30 per cent to 8,000 square metres. 

FN Factory Outlet will also provide restaurants designed with a relaxed atmosphere. To ensure they are attractive to visitors, FN has formed a partnership with an Iron Chef Thailand winner, chef Gai, to create special menu items and desserts including Thai-style pizza and a French dessert, crepes suzette, served with home-made ice cream.

The company says there are not only high-quality products at affordable prices at its outlets, but also great restaurants and clean and spacious restrooms, which travellers also need. 

Many people still think that factory outlets are a place for surplus and damaged goods, but in fact they can stock new and quality products. More than 80 per cent of FN’s merchandise is specially produced for the outlet stores under various brands, while 10-15 per cent is from selected brands including Adidas, Greyhound, FCUK, Calvin Klein, Zara, Quicksilver and Roxy.

Thanks to the low cost of marketing, efficient logistics and owned outlets, FN says it can offer prices similar to factory prices. The choice of items is extensive – suits, ties, shirts, T-shirts, shoes, bedding, trousers, dresses, furniture, beachwear, luggage, glasses and even lingerie.

“In an effort to build consumer awareness, we have to change the perception of the factory outlet,” Benyiam said. “The company is considering a new marketing strategy with an emphasis on a brand communications campaign via various media channels to reach the target groups. Consumers will get a clearer concept and recognise the quality standards of the outlets.”

Each outlet requires 8,000-9,000 square metres of retail space and an investment of more than Bt300 million. Despite the country’s economic slowdown, FN Factory Outlet expects 30-per-cent growth in sales next year, driven by the new store concept and aggressive campaigns.

The company is studying the possibility of listing on the stock exchange in a few years to support future business development, Benyiam said.