Saha-Union, the manufacturer and distributor of D-maQ sports shoes and accessories, plans to conduct a marketing trial later this year for a new product line: sports apparel.

The trial is part of the company's long-term plan to achieve Bt200 million in annual sales of the line by 2009, with a net profit of 8 per cent.

Saha-Union marketing manager Chana Vasuvat yesterday said if the new sports apparel received good feedback, the company might invest Bt40 million to Bt50 million to expand production lines at its plant, in order to make the products in commercial quantities.

While waiting for the outcome of the marketing trial, the company is planning to launch direct-sales channels. It is negotiating with two or three other companies, both local and international, and expects to conclude deals by this year's second quarter. It expects direct sales to contribute 10 per cent of this year's total sales.

At the same time, Saha-Union is negotiating with other companies to sell D-maQ products under their own in-house labels, said Chana.

The company also plans to launch another new product category - sports fashion - by mid-year and new models for its top-selling running shoes.

The company expects to achieve Bt170 million in sales this year, up 15 per cent from last year. Running shoes contribute 47 per cent of its total sales.

Chana said Saha-Union had not noticed any effect on its sales from the retailing problems that have been associated with the New Year's Eve bombings in Bangkok. He is hopeful the situation will return to normal within three months.

Saha-Union has set aside a marketing budget of Bt6.5 million and intends to focus mainly on promoting the anti-bacterial properties of its shoes and socks.

Chana said D-maQ products are available at 65 selling points in Bangkok shopping malls and another 165 outlets upcountry.

In the Central Group's SuperSports superstores, which are one of the company's main retail outlets, D-maQ is ranked fourth behind Adidas, Nike and Converse and holds an 8-10 per cent market share.

Chana said competition in the sports-shoe market, which is worth Bt2.9 billion a year, is not as fierce as it was two years ago, because many local brands had disappeared from the market.

Nitida Asawanipont

The Nation