Swarovski, one of the world“s best-known producers of full-cut crystal, is moving to consolidate and expand its business in Thailand.
The economic situation in the Asia-Pacific region presented an o…
Swarovski, one of the world“s best-known producers of full-cut crystal, is moving to consolidate and expand its business in Thailand. The economic situation in the Asia-Pacific region presented an opportunity for the Austrian company to take control of local operations, Alexander Riedmann, regional sales manager, consumer goods division, Swarovski Management Pte.Ltd, said. The company was moving away from franchising toward wholly-owned retailing to achieve more control over marketing strategy and service, he said. Kamonwan Charoenpanon, managing director of Swarovski (Thailand) Ltd. said there continued to be healthy demand for luxury goods in Thailand. Wealthy customers would buy products abroad if they were not available locally as price was not a barrier. Swarovski will open Swarovski Thailand“s newest wholly owned retail store at the Siam Discovery Centre in Bangkok. Ms Kamonwan said Swarovski“s business was now mainly in Bangkok. “However, next year we hope to gain a clearer picture of the market potential in the provinces.”The Nakhon Ratchasima store, which opened in August, was the first step into the provinces, she said. However, the franchise business at Silom Complex in Bangkok would be closed later this year because of poor sales. The company believed the wrong location had been chosen for the shop. According to Mr Riedmann, Swarovski“s worldwide sales last year totalled 1.99 billion Swiss francs or about 52 billion baht. The firm claims to supply 90% of the world“s crystal products. Swarovski Thailand reported 1999 earnings of 123.5 million baht, down from 178.5 million baht in 1998. However, Ms Kamonwan said she was confident that sales volume would grow between 15% and 20% from current levels in the next two or three years. Swarovski Thailand“s other distribution outlets include franchises at the World Trade Centre and Peninsula Plaza, and retail stores at the Emporium Shopping Complex and Amarin Plaza. The crystal products are also distributed through The Mall Group and Central department stores.