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Thai-apparel brand to convert distributorship into partnerships
Jun '11
Piya Thanakitamnuay, CEO of Reno (Thailand) recently revealed that the firm intends to ink a joint venture deal with its distributors in Indonesia and Malaysia next year, as it launches its regional expansion plan.

He said that, the firm which is a producer and distributor of fashion label AIIZ is eyeing expansion of its AIIZ brand by way of associating with distributors in budding markets like China, Japan and South Korea.

Piya said that it has expanding its business in Southeast Asia since long and now it proposes to intensify this expansion process by transforming the distributorships into partnerships in specific markets.

Such partnership deals would allow the firm to better penetrate into emerging markets by formulating its personalized marketing and distribution policies, Piya said.

The official further said that they even intend to launch flagship outlets in some of the countries in the region over next two-three years.

He said that the firm means to exploit the Indonesian and Malaysian markets as consumers in these countries have a better purchasing power as compared to consumers in Thailand.

Almost a decade ago, AIIZ for the first time penetrated foreign markets by appointing domestic distributors in Malaysia, Laos, Middle East, Burma, Singapore and Indonesia, Piya said.

He added that the firm has been present in Thailand for almost past 17 years and has even spent around 10 years in ASEAN markets in order to survey the market and comprehend the consumer behaviour and is now all set for regional level expansion.

He elaborated that through such vigorous expansion the company intends to expand the AIIZ business in the Southeast Asia over the next five years and to boost its overall sales by almost three fold to Bt15 billion by 2015. It is expected that overseas markets would contribute around two-thirds of this overall anticipated turnover.

Further, he even stated that the company which already operates around 300 retail stores in Thailand, intends to add three more AIIZ flagship outlets in Thailand during next year, which would include a megastore on Bang Na-Trat Road, which would be set up at a total cost of around Bt80 million.

Fibre2fashion News Desk - India

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