US cookware firm targets Asia

Calphalon, a US-based cookware- and cutlery-maker, is looking to expand in the Asia-Pacific region and is hoping that Thailand will help drive sales.
The company has set an annual sales target of US$30 million (Bt1.4 billion) to $50 million for the region over the next five years, up from only $2 million last year.The cookware market in the US is saturated with many brands offering a wide variety of products, but "the Asia-Pacific region has great potential," said Kenneth Ren, Calphalon's commercial director for the region. Calphalon started expanding into the Asia region three and a half years ago and now has a presence in 12 countries including Australia, New Zealand, Japan, Taiwan, Korea, Hong Kong, China, Singapore, Thailand, Philippines, Dubai and Israel. Sales from Asia currently account for only 1 or 2 per cent of Calphalon's worldwide sales. Ren said the speedy expansion into Asia would probably be made through acquisitions and partnerships with local allies. Calphalon is owned by Newell-Rubbermaid Inc, which has global sales of $7 billion. Japan is its biggest market in the Asia-Pacific region with expected sales of $10 million-$12 million over the next five years, followed by Australia and Korea with $5 million-$10 million and Singapore and Thailand that could register combined sales of $5 million during the same period, Ren said. Thailand has strong housing market and ever-changing lifestyles creates vast potential for premium cookware products, he said. "Before the introduction of our products, the cookware market in Thailand was flooded with products aimed at quick and easy cooking while the most important feature - cooking performance, inevitably was on the backburner," said Supassorn Rattakul, general manager of Shiwa Cooking Essential, Calphalon's local distributor. Calphalon's target customers in Thailand are expats and locals with disposable income, said Michael Otterman, Calphalon's product management director. Calphalon products are now available in department stores such as Central Chidlom and the Emporium Shopping Complex. "We hope that the aggressive expansion in the Asia-Pacific will help boost sales of Calphalon by 10 to 12 per cent this year to $500 million. Last year, sales grew by about 10 per cent," Otterman said.
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