Uniqlo targets double-digit yearly growth
Casual-wear company Uniqlo plans to have 100 branches in Thailand by 2020 and targets double-digit annual sales growth.
"The Thai apparel market has potential to grow because of increasing income per capita, intercultural awareness and the establishment of the Asean Economic Community. We target sales growth in the double digits every year in Thailand," Chanvit Khieonavavongsa, marketing and public relations director of Uniqlo Thailand, said in a group interview yesterday.
Thais have absorbed various cultures via social media, and they are more interested in fashion transformation than in the past. Also, the establishment of AEC implicates opportunities to grow, with the number of customers from neighbouring countries likely to increase, he said.
The company faced difficulties with its expansion process last year because of political instability and economic sluggishness. As a result, the company could open only four stores, below its goal of more than 10.
The brand now has 23 stores in Thailand, 14 of them in Bangkok.
The company’s sales in Thailand increased by 83 per cent in 2012, 45 per cent in 2013, and 27 per cent in 2014. Worldwide, it expects revenues of 5 trillion yen (Bt1.36 trillion) in 2020.
"E-commerce service is not the priority at the moment, but the company has been attempting to raise brand awareness via social media," Chanvit said.
E-commerce service has been provided in various countries including Japan, Singapore and the United States.
This year’s advertising budget is Bt300 million, and it plans to spend the same amounts in each of the next five years. Social media will take up 15 per cent of the budget this year, increasing to 20 per cent in 2016, he said.
