Thai fashion brand, Jaspal Eyes Regional Expansion
- March 19, 2012
Published: 16/03/2012 at 02:28 AM
Bangkok Post / Newspaper section: Business
Jaspal Co Ltd, the 40-year-old Thai fashion brand, will make a serious effort to raise its profile at the regional level over the next five years.
Assistant managing director Viseth Singhsachathet said the company will become more active in Asean starting next year.
It entered Malaysia three years ago and has received good feedback from this market.
Next will be Vietnam, which is seen as having the highest potential after demand rose by 20-30% in each of the past three years after local merchants began importing Jaspal, CPS Chap and Lyn Around products.
Indonesia is also in the pipeline.
Mr Viseth said five years from now, 70% of annual sales will come from the domestic market, down from 95% now.
Jaspal is considering a proper format for regional expansion.
The choice is between a multi-brand shop under one roof or stand-alone stores for each fashion brand.
Asked about possible effects from the Asean Economic Community scheduled for 2015, Mr Viseth said it will be a growth opportunity for his goods.
Many countries such as the Philippines and even Myanmar are interested in importing Thai fashion brands.
“After we test marketed in Vietnam, we found no one was in the mass premium market like we were. Our direct competitors are European fast fashion brands that already entered Thailand three or four years ago,” he said.
“Believe it or not, our sales grew by about 20% each year during that period, even 28% last year.”
Mr Viseth said the company has been preparing itself for international expansion for several years now.
It opened a Jaspal shop in Malaysia three years ago to learn about export markets.
Now there are four in the country.
Jaspal was established in Thailand in 1972, about the same time as other popular local fashion houses such as Greyhound, Soda and Theatre.Jaspal operates seven fashion brands _ Jaspal, CPS Chap, Footwork, Footwork Noir, CCOO, Lyn and Lyn Around, covering apparel, shoes, bags, sunglasses and underwear.
“All our brands now have strong local recognition, and we’ll raise their image at the regional level over the next five years,” said Mr Viseth.
He added that he believes it is possible to have at least one or two stores of each of the company’s fashion brands in each Asean country.
Thailand has 120 stand-alone stores for all brands nationwide, 36 of them under the Jaspal brand.
Combined sales reached 3.8 billion baht last year and are expected to rise by more than 26.3% to 4.8 billion baht this year.
The Jaspal brand contributes 35% of the total sales.
The company will open five new stores for each of the seven brands this year at a combined cost of 350 million baht.
The openings will create 350 jobs.