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Published on July 9, 2007

The move is in line with Flynow's strategy to turn its focus from lower-spending markets to high-purchasing countries.

Somchai Songwattana, CEO and art director, said last week that Japan, the Middle East and Europe would be targeted.

The country's economic slow-down and reduced consumer spending have prompted the group to boost exports. So far, the company's main revenue comes from exports under its own brand name "Flynow". It achieved 20-per-cent growth in first half this year, 10 per cent lower than its projection, driven particularly by exports.

"Luxury goods are immediately hit in an economic slow-down as consumers stop purchasing premium products first," he said.

The group plans to open in Japan late this year. At least two to three exclusive shops as well as about 40 outlets in department stores will be opened.

At the outset, the company will focus on high-end leather goods and accessories at prices from Bt12,000 up to Bt60,000 per piece. The leather-goods stock will be easy to manage as it is not a seasonal product like fashion designs, which need to be changed every season.

Somchai said the plan was to get the group's export value to reach 40 per cent of sales, an increase from a previous projection of 30 per cent.

A year ago, the group shut down operations in Singapore and Malaysia due to a small number of customers and low purchasing power. As a result, the group has to focus more on wealthier markets such as Japan.

The Middle East is the next target export market, thanks to consumers with higher purchasing power who have high brand loyalty.

Kwanchai Rungfapaisarn

The Nation