THURSDAY, March 28, 2024
nationthailand

Tri-Stage eyes Asean expansion via stake in TV Direct

Tri-Stage eyes Asean expansion via stake in TV Direct

TRI-STAGE INC, a leading Japanese direct-marketing solution provider, yesterday announced the acquisition of a 15-per-cent stake in Thailand’s TV Direct, the listed TV home-shopping operator.

 TV Direct will be used as Tri-Stage’s springboard in expanding the business in potential markets in Asean, especially in the CLMV (Cambodia, Laos, Malaysia and Vietnam) area.
The acquisition will allow Tri-Stage to become the largest single shareholder in the Thai company, giving it a seat on TV Direct’s board.
There is, however, no significant change in the top executive and management structure at TV Direct as a result of the deal. 
Yutaro Suzuki, director and senior executive of Tri-Stage, said his company provided a direct-marketing solution to 130 clients, selling about 500 products in total.
 The firm generated revenue of ฅ37.13 billion (Bt12.21 billion) last year, some 15.4 per cent higher than the 2014 level.
The partnership between TV Direct and Tri-Stage will also allow the Japanese partner the possibility of opening a Nippon Department Store in Bangkok. 
 Tri-Stage operates two Nippon Department Store outlets in Japan, retailing specialty and notable local products and sundry items from the various regions of the country.
 “We have acquired a 15-per-cent stake in TV Direct as we have seen the strong growth potential of home-shopping business in Thailand. TV Direct has been successful in developing home-shopping business here [Thailand] and we would like to rely on their skill to explore business opportunity in other Asean countries,” Suzuki said.
“We are negotiating with TV Direct about the business principle in expanding the home-shopping business in other potential markets in Asean,” he added. 
 Tri-Stage already has a business in Indonesia after purchasing a stake in a local distribution firm that supplies products to a home-shopping network.
 Tri-Stage operates largely in two business areas, with the direct-marketing support segment engaged in the provision of media advertisement space; the customised development of products; the planning and production of TV and other programmes; and the provision of know-how about order receipt and logistics. 
 The direct-mail agency sending segment is engaged in the agency dispatch of direct mails and products, and other businesses. Through a subsidiary, it also operates a retail business selling specialty products and miscellaneous goods.
 Songpol Shanmatkit, chief executive of TV Direct, said that under the acquisition, Tri-Stage had acquired 97.5 million shares at Bt3.50 apiece.
“Under the partnership, we – TV Direct and Tri-Stage – will share direct-marketing know-how and experiences in developing the market together,” he said.
Songpol identified the key mutual benefits driven by the strategic partnership as the transfer of direct-marketing and direct-response TV know-how, which will lead to increased sales and cost reduction; business process outsourcing, which will allow TV Direct to duplicate the business model in bringing Japanese products and services to Thailand; sharing business information, best-selling products, and selling methods; using Tri-Stage’s retail network, such as Nippon Department Store, in distributing Thai products into the Japanese market, and Japanese products into Thailand; and strengthened financial support.
“Within the next six months, we will see the immediate benefit of the partnership, including in the area of media management and media utilisation. The company expects its overall expenditures to be slashed by between 5 and 10 per cent over the period,” the CEO said.
 He added that product exchange and creation between the partners would be seen within the next 12 months, while mutual cooperation, such as in database marketing, would be achieved in the longer term.
“The home-shopping market in Thailand was worth Bt8 billion last year, and is expected to reach Bt10 billion this year. The market is expected to enjoy further growth for the next five years,” Songpol said.
TV Direct leads the local TV shopping market with a share of 40-50 per cent, he said. Other active players are TVD Shopping, O Shopping, True Select, Shop Channel, Hi Shopping, 1577, 1575 and Denso Direct.
TV Direct expects to achieve Bt3.2 billion in sales this year, against Bt3 billion last year.
Its annual growth-rate target is normally 15 per cent, but with the partnership with Tri-Stage, growth should rise to 20-25 per cent from 2018 onwards, the chief executive said.
“We have about 1,500 SKUs [stockholding units] in our portfolio, of which 40 per cent are Thai products. With the partnership with Tri-Stage, between 50 and 100 new SKUs will be added, of which between 50 and 60 per cent will be from Japan, and the rest from China and South Korea,” he added.
 
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