Eveandboy’s race to retail success

COSMETICS BRAND Eveandboy ended 2005 with a single retail outlet in northeastern Maha Sarakham province. Now it’s got 11 branches across the country, including a sizeable one at Siam Square in Bangkok, and two more are on the way.
Let’s have a round of applause for its founders, Hiran Tanmit, the “Boy” in Eveandboy and currently its managing director, and the “Eve” – his sister, Suthawal Trachu.
That’s what they got at a recent celebratory charity event in the capital. To show its appreciation for woman power, the multi-brand store invited all women to support their sisters through the social campaign “Eveandboy Pink Power” and raise funds to support female inmates of the Correctional Hospital Foundation.

Boy recalled growing up in their parents’ Isaan grocery store.
“I could see from the account sheets at my parents’ store that there was a big profit margin in the cosmetics category. I also observed the success of the multi-brand cosmetic stores in Europe, Japan, South Korea and Hong Kong and wanted to be part of that success,” he said. 
“So we adopted this as our business model, and it didn’t matter to us if we started in our hometown instead of Bangkok. In fact, I’m very proud that we did it that way.”
The first shop opened in Maha Sarakham in 2005 and the next appeared in Khon Kaen, near the university, an attractive location bustling with young people. Each of the 12 branches today stocks more than 1,000 brands, some with mass appeal, others more exclusive.
Among the keys to success at Eveandboy are the pricing strategy – the goods are lower than market price – and the fact that celebrities who don’t have shops of their own sell their sponsored beauty products there. 
And there’s no denying that customers love getting free samples and free trial periods. 
Boy said he’d paid attention while attending Thammasat University and travelling overseas to how open young people were always open to “new things”. 
“In 2012 we opened an Eveandboy in Siam Square Soi 1. There were challenges, but I was never afraid of losing out – I just felt ready to grow.” 
Marketing is very different in fiercely competitive Bangkok than it is upcountry, he said. 
“In Maha Sarakham and Khon Kaen I can sell at slightly cheaper prices and arrange special deals with the suppliers. We can lower the profit margin and still earn enough to survive. 
“In Bangkok I’m now partnered with many famous international brands, and I ask them for samples or small gifts to give away in promotions. Since almost 80 per cent of our customers are women ages 18 to 34, we have to come up with promotions that are different from what you find in the department stores.”
The chain also carries products not normally found in department stores, such as Pretty by Flormar from Italy and Moon Shot from South Korea.

Actors Sopidnapa “Jeab” Chumpani, Panisara “Opal” Pimpru, Ratha “Yayaying” Phong- am, Tanyaret “Tanya” Engtrakul and Pakorn “Dome” Lum all sell their skincare items and diet supplements through Eveandboy.
“The social media are truly important to Eveandboy,” says Boy. “These actors and actresses don’t have their own shops and they might have only one or two products – not enough to fill a beauty counter at a department store. They sell their goods online, especially on Instagram and Facebook, as well as on our site, Eveandboy.com and we have a lot of followers. Plus, everyone on our staff is young, so they’re all engaged in the social media.”

He knows, though, that the social networks can represent a double-edged sword. WhenRetailers have suffered severe backlash when sales or distribution were mishandled and customer complaints echoed endlessly around the Internet. Consumer opinions often go viral, both positive and negative.
Boy, though, is ready to learn as he goes. He pointed out that the family grocery store was a classroom – he did everything, from stockboy and cashier to accounting, deliveries and even designing a brochure and carry-bags. 
“At one time at the Eveandboy in Khon Kaen, there was only me and the manager, but we managed to get through it. So, to me, every obstacle is a challenge and I’ve come to understand all the problems the team might encounter. I think I can handle every situation and help them fix what’s needed. Every day I still like to go to the stores and do this and that – even decorate the shelves.”
While the 12th and 13th Eve- andboy outlets are planned and there will be further physical expansion, upcountry the focus for the next three to five years will be on e-commerce. 
“Our strength is that we have an established brand and stores, so we have more credibility than cosmetics distributors that are only online,” Boy said. “Customers know they can trust us to sell them genuine products online and deliver them in good condition.”