THURSDAY, March 28, 2024
nationthailand

Chic Republic looks abroad

Chic Republic looks abroad

CHIC REPUBLIC, a major Thai chain of home fashion stores, has a strategic plan to explore business opportunities outside Thailand |in neighbouring countries, said chief executive officer Kijja Pattamasattayasonthi.

He said the first Chic Republic store outside Thailand would be officially opened either in Vietnam or Cambodia within two years. The cost will be between Bt100 million and Bt200 million per store.
“Vietnam and Cambodia are the two countries realised by the company as potential markets for our overseas expansion. They have high economic stability and their people have enjoyed strong purchasing power. Our target customers which are middle- to high-income earners,” Kijja said.
“The overseas expansion could be under the company’s 100-per-cent ownership or joint ventures with local partners in particular countries. However, we want to hold major stakes in any overseas joint ventures so that we are able to set the direction for the Chic Republic stores ourselves,” he said.
Chic Republic yesterday announced its sales target for this year at between 5- and 10-per-cent growth, with a focus on the middle-to-high-end market to avoid risks associated with the limited purchasing power of lower-income customers. 
Kijja said the company would collect a full year’s revenue for the first time from its new store on Ratchaphruek Road. 
He said the company was also excited about its new brand Rina Hey, which was designed for young couples and families. 
He said Chic Republic continued to reinforce the brand strategy of value for money and was confident of becoming the top furniture and home-decor retailer in the middle-to-high-end market. 
“We are moving at a fast pace to put a Rina Hey shop in every Chic Republic store, and we also plan to have one more Chic Republic store,” he said.
“We are a global furniture and home-decor store with high-standard products comparable to Europe and the US, under the home fashion store concept.” 
Kijja is confident the home and fashion furnishings market in Thailand will grow this year even though the economy remains sluggish. 
He said Chic Republic’s customers had purchasing power and were not spending less. 
He said the major residential development companies had implemented strategies aimed at middle-to-upper-income earners to reduce the risk associated with people with limited purchasing power and complications in securing credit from financial institutions. 
“We therefore foresee that this is an opportunity for us, whose target customers are middle to upper class,” Kijja said.
“In 2017, our business plans are focused on strategies delivering value-for-money products to customers and creating inspirational new experiences through our products’ long history. We expect to grow by 5-10 per cent in 2017 from last year’s Bt860-million revenue.”
Kijja said the company chose Ratchaphruek Road for the new branch because of the high purchasing power of people living near it. Major real-estate companies were also launching various middle-market housing projects there.
The new branch has the company’s biggest sales area at more than 5 hectares. There are more than 250 parking spaces available and famous restaurants to accommodate customers.
Rina Hey was born to support the new generation of first-time employees and couples who have just started a family and who desire unique, industrial-style furniture. 
The company says Rina Hey is “the answer to the residential lifestyle of the new generation”, where houses, townhouses and condominiums have limited space.
The products’ modern and compact size have a strong identity, resonating value for money and the “inspiration and experience” concept clearly, the company said.
Kijja said the company intended to push the Rina Hey brand in a completely different direction. 
He said the investment and marketing plans for the brand would be separated from Chic Republic. It is hoped this will establish Rina Hey as a strong and independent brand in the long run. 
In the second quarter, the company plans to add Rina Hey to all its stores – Praditmanutham (Ekamai-Ramintra expressway), Bang Na (Bang Na-Trat Road) and Pattaya (opposite Big C South Pattaya). 
In the future, the company also plans to open one standalone store especially for Rina Hey. The prime focus will be several areas in big cities where there is high purchasing power.
Rina Hey’s business plan is aimed at the new generation with its “unique and individualistic style”. As such, the company will focus on online marketing and the digital platform in general to promote the brand. 
The company has begun developing social-media strategies on Facebook, Instagram and Line for the brand.
Plans are also under way for a new website interface. As the market trends all lead towards digital platforms and especially e-commerce, the marketing strategy for Rina Hey will be geared towards online business. This will raise awareness about the new brand and enable the company to target potential customers, Chic Republic says. 
 

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