TANACHIRA anticipates 40% surge in sales
13 May 2022
Even with the short-term downturn, Tanachira managed to open five new stores this year, said Mr Tanapong.
Despite the ongoing pandemic, Tanachira Retail Corporation, the importer and distributor of lifestyle fashion brands including Harnn, Marimekko and Pandora, expects its business to resume growth next year. Tanapong Chirapanidchakul, the company's chief executive, said the company expects to increase sales by 40% in 2022 from an estimated 870 million baht this year, which is a 5% dip from 920 million baht in 2020. Even with the current downturn, Tanachira managed to open five new stores this year. "Without foreign tourists, we've adapted our strategy by shifting more to online business and tapping into the young generation as our new customer base," Mr Tanapong said.
He said Thailand has 30 million customers aged between 20-35. This customer group has relatively high spending power and is ready to shop online for lifestyle retail fashion. The online channel contributes 13% of the company's total sales, up from less than 1% before the pandemic. Mr Tanapong said shoppers' spending has been improving since the government started easing lockdown measures in September. "Right now, 80% of customer traffic is back, and we expect the traffic rate to increase to 90% this year," he said.
Encouraged by signs of a consumer spending recovery, the company teamed up with financial solutions provider Atome Thailand to offer a "Buy Now, Pay Later" programme, running from Dec 12. The programme is applicable to all its retail fashion brands including Pandora, Marimekko, Cath Kidston, Harnn, Vuudh and Harnn Wellness & Hospitality, as well as businesses in its group, including Harnn Heritage Spa Krungthep and Scape by Harnn.
The programme will be a vital part of the company's strategy to grow its sales next year both through online and offline channels, said Mr Tanapong.
Under the Buy Now, Pay Later scheme, customers are allowed to buy products with three months of instalments via the Atome app, starting from a minimum of 20 baht. The firm expects 150,000 customers to download this app to shop, Mr Tanapong said. "Our products are not essential goods for life, but we expect more customers will access our retail fashion brands if good financial solutions are offered." He said that although the overall retail fashion industry is unlikely to recover next year, Tanachira remains committed to opening 10 new fashion and spa stores in 2022. Of the total, five are for Harnn spa, three for Pandora, and one each for Marimekko and Cath Kidston. The firm will relocate or permanently close some non-performing stores in tourist destinations.