Eyeing penetration in the Japanese market, Thai lingerie producer and distributor Jintana Intertrade has entered into a Bt 1.1 billion five-year partnership deal with Sumikin Bussan Corporation, Thailand’s The Nation reported.
Vichai Thanalongkorn, Chief Executive Officer (CEO) of Jintana Intertrade and Mitsunori Okada, President of Sumikin Bussan inked the deal on behalf of their respective organizations.
Pursuant to the deal, January 2013 onwards, Jintana would provide machines, material and support services to Sumikin Bussan to set up operations in Japan.
Upon commencement of Japanese operations, Jintana would each year produce about two million lingerie pieces there, and would also generate around 400 jobs, Mr. Vichai said.
Savitee Thanalongkorn, Vice President, Jintana, said Jintana has its presence in the lingerie space for over five decades and has established itself as a leader in the Thai lingerie market for several years and is now eyeing further expansion in the Asian markets.
The company presently operates two plants in Thailand – one in Nakhon Ratchasima and other in Nakhon Pathom province – and seven shops in Myanmar, particularly in Mandalay, Nay Pyi Taw and Yangon, and intends to launch 20 new outlets in near future.
The company foresees its market share in the Bt 12 billion Thai lingerie market growing by 10 percent annually, with 25 percent of this being in the basic brassiere segment.
Further, as the company intends to generate US$ 10 million or Bt 307 million worth of revenues from Asian markets, it is also looking forward to expand in the Malaysian and UAE markets.
Next year onwards, the company would also focus on promotions aimed at brand building activities.
Sumikin Bussan procures the most suitable materials from around the world and makes use of sewing centres across Japan, China, and ASEAN countries to supply high-quality textile products.
The company offers total solutions from materials development to product planning, production, and distribution in the areas of womenswear, men's clothing, functional clothing, and home fashion, centering on its OEM production business for apparel makers.