Emilie Isidoro Singhabhandhu, Peppo general manager, said the company had opened first four Castro outlets last year, at the Emporium and Siam Paragon shopping complexes. Two of the stores cater to women, the other two to men.

After its success in marketing Guess and MNG, she said, Peppo was confident about Castro, a top label from Israel targeting those in the 18-22 age group.

"Peppo will bank on international and local advertising campaigns," said Emilie, adding that Peppo expects to spend a Bt70-million marketing budget on Castro this year. The budget will be spent on magazine advertisements, two fashion shows - one each for the Sping-Summer and Fall-Winter collections - and sponsorship of TV shows.

The Castro label is ranked No 1 in Israel, with more than 70 stores around the country. Thailand is the first country in Asia to market the brand.

Peppo will later look for a suitable time to seek a licence to market the label elsewhere in East Asia. Singapore, Hong Kong, and Taiwan will be the first three countries considered.

Emilie said Peppo also planned to open more outlets for the Castro products, setting up flagship stores at Central World Plaza and Central Lat Phrao with retail space of 350 square metres at each.

Its four-year plan is to have eight shops in all - in Bangkok, Pattaya and Phuket.

For the moment, the company imports only clothing and accessories such as bags. It also plans to bring in Castro jewellery by the time it opens the two flagship stores in September.

Thais represent 60 per cent of Castro's current local customer base, international customers the rest.

By adding Castro to Peppo's portfolio, Emilie expects its brands will achieve US$26 million (Bt1 billion) in sales by year-end.

Castro has 70 branches globally, including in Germany, Switzerland, Eastern Europe and Russia.

Nitida Asawanipont

The Nation