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Published on August 22, 2007

Ekachai Youngvanich, vice chief executive of Satien Stainless Steel, which manufactures and distributes Zebra-brand kitchen utensils, said the new products incorporate plastic and feature colours, whereas the company's conventional products are made entirely of steel.

About Bt70 million has been spent on new machinery, and another Bt20 million has been earmarked for marketing the new product line. The company plans to spend Bt40 million to advertise all of its products this year.

Satien Stainless plans to market the new products mainly through print ads, direct mailing and below-the-line activities. Its target customers are "new generation" people aged over 25 who have moved into new residences, primarily condominiums, and love to cook.

The new line includes 30-40 items with prices 5-50 per cent higher than conventional Zebra products, of which there are about 1,000 items. Prices for the conventional products have risen about 25 per cent over the past three years, because of the rising cost of stainless steel. The company's main raw material costs Bt200 a kilogram today, when just a few years ago it cost Bt70 a kilogram, Ekachai said. However, there should be no further price increases this year.

"Trendy Zebra will be the company's main drive to expand its client base and boost revenues in the second half," he said, adding that Satien Stainless had been affected by political instability and the strong baht.

"We now believe that this year, our revenues will reach Bt1.1 billion, which is flat growth from last year."

The company had targeted revenue growth of 10 per cent for the year.

Satien Stainless plans to open five more shops this year, adding to its present 40 shops in 36 provinces. It expects the network to be nationwide in three or four years.

Last year, Satien Stainless earned Bt700 million from domestic sales and Bt400 million from exports to 40 countries. At present, it is the leading player in the stainless-steel kitchen-utensil market, with a 60-per-cent share. Ekachai hopes the election scheduled for later this year will lead consumers to resume normal spending habits in the fourth quarter.