Puri, the manufacturer of Panpuri spa products, expects to open its first subsidiary in Japan within two months by joining with its local distributor there through an expected initial investment of Bt10 million.

Meanwhile, the company has invested Bt5 million to construct a new plant to expand production capacity in Pathum Thani province.

The company is registering to set up the subsidiary, according to Puri Co Ltd's marketing director Vorravit Siripark.

The company will be its second subsidiary globally - the first is in Paris.

He said Japan had become its second-largest market in Asia after Thailand since it entered the scene almost three years ago, contributing approximately 20 per cent of its annual sales in the Asia region.

The subsidiary would be an advantage in the long run, instead of just having a local distributor.

He said Panpuri is well-recognised among many luxury hotels in Japan such as Four Seasons Hotel, and shopping malls such as Isetan.

Apart from the subsidiary plan, it also intends to open spas in Japan as well as Dubai and France. It is studying the markets and expects to take more than one year to make a decision.

He said Japan is a big market but it has many types of spas, while France requires a significant investment budget. Meanwhile, the company has been offered a space in a six-star hotel in Dubai but it is not so familiar with that market.

He said the global market still promised a bright future for Thai spa products "because international people always think of Thailand first when they talk about spa products and spa treatments that rely on natural and Eastern concepts".

The market for spa products in Thailand has already reached maturity.

Many brands that were established over the past three years, when the market was on the rise, have faded away and not many new brands have emerged. "Only strong brands with uniqueness can survive," he said.

However, the market will continue this way as Vorravit said spas had become one of the core facilities that all luxury hotels should have or they loose their prestige image."So they need suppliers for spa products."

The company has eight selling points in Thailand and many corporate customers, mainly luxury hotels such as Conrad Hotel, Sukhothai Hotel and Plaza Athenee Hotel.

This year, Puri has allocated 10 per cent of its Bt100-million expected sales as a marketing budget.

 It expects to move its plant from the Klong 7 area to the new site in the Klong 11 area in the same province, Pathum Thani, in the third quarter. The production capacity of the original plant is 600 tonnes per month while the new plant is three to four times larger.

Panpuri has experienced double-digit growth in every one of its three years.

Vorravit expects to achieve the same growth, although he is aware of the possible effects of the political tension and economic slowdown.

Nitida Asawanipont

 The Nation