Steering its success is Chiang Mai artist and entrepreneur Narongsak Pacharoen, who is now building a new brand - King's Souvenir - for sales in the domestic market.

King's Collection products include pottery, sandstone carvings, garden ornaments and decorative lamps, skilfully designed to attract buyers in the world's most exotic tourist havens: the Caribbean and the Maldives.

Narongsak's financial success stems from the fact that his products have a high margin of 60-70 per cent. But he has several "keys" to success in sales, uppermost of which is the "limited edition" concept, in which products are designed precisely for very specific markets. In general, the target group for King's Collection is people with high purchasing power.

The business has no showroom or large-scale manufacturing plant. The entire export process is outsourced. Negotiations with clients occur over the Internet, with a design team working hand-in-hand with clients on the other side of the world. Both sides must agree on final products before manufacturing begins, cutting down on both time and costs in producing sample items.

In this way, King's Collection has been able to achieve high business growth despite economic slow-downs, both locally and internationally. Perhaps Narongsak's greatest talent is his ability to read market demand.

"We tap into markets that no one can break into, like the Caribbean countries and the Maldives. I thought of these markets after watching Hollywood movies and observing that thieves love to move their money to these countries. The only reason is that the world's most luxurious beach resorts are there, so I saw high purchasing power, right there," he explains.

"After getting the idea, I searched for all the information I could get on what kind of products tourists to these countries are looking for. Then I started sending e-mails to retail souvenir shops. I received a warm response, and now my products are placed all over these shops."

King's Collection's business strategy is unlike that of SMEs that join international fairs. Narongsak says that at best, joining such fairs may not be the right answer to export marketing. At worst, they are a waste of time and money.

"Our products are unique, as they are exclusively designed for certain target groups," he says. And the designs reflect Narongsak's personal lifestyle. He is easily smitten by products with unique features, exclusivity and limited production, including mobile phones, rings, watches and jewellery.

He also attributes his high success to seven key strategies: information technology (IT), management by strategy, teamwork, value creation, knowledge, network and innovation.

IT has helped King's Collection gather in-depth information on such issues as which products sell best, target groups and why customers decide to buy. Equipped with this information, the firm then plans and designs its products and decides which products should be placed in different markets.

Despite his success abroad, Narongsak believes there is still a high potential for growth in the local market.

"SMEs do not need to export only," he says. "In fact anyone trying to export with too little knowledge might get lost. I think the domestic market still has room to grow."

He believes any items relating to tourism will sell.

"More than 14 million or 15 million tourists visit our country. About 30 per cent of them come here for shopping, and the value [of their spending] is as high as Bt100 billion. Souvenirs with flashy designs and of high quality are very interesting," he says. "Why don't we look back at business opportunities in the local market before going abroad? SMEs might need to be strong within the country first, because exports come with high risk."

Ancharee Promsakul

The Nation