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Published on November 9, 2007

It will market imported and self-designed brands through subsidiary Clothing Solution after suffering falling revenue because of the baht's appreciation.

Clothing Solution has been appointed sole distributor of Report Collection, a famous Canadian garment brand, in Southeast Asia for five years.

Report Collection has chosen Thailand as a distribution base, SAS Group managing director Veerasak Thanaboonchai said yesterday.

At present, Report Collection has three shops in Thailand, four in Singapore and two in Malaysia. It has launched the Spring Collection 2008, featuring menswear, as its first collection to open in Thailand.

SAS Group, whose head office is in Bangkok's Yan Nawa district, has exported textiles to Report Collection for six years. Garments under the brand are sold in South America, North America and Europe.

"After doing business with Report Collection for a long time, I decided to have a new company in the retail market by importing products from Report Collection as a first brand for Clothing Solution to sell in Thailand," Veerasak said.

SAS Group is switching to the retail market because of the strong baht and fierce competition from China in exporting textiles.

"I forecast our group would earn Bt600 million this year, but this is the first year that we will record a net loss. The baht's value has increased 18 per cent from early this year, so we can't gain a profit. That is a reason why I have to find another market," Veerasak added.

He estimates Clothing Solution will generate revenue of Bt35 million in Thailand, Singapore and Malaysia next year, of which Bt20 million will come from the Thai market.

Next year, Veerasak plans to open 18 Report Collection shops - six each in Thailand, Singapore and Malaysia. He also wants to penetrate the Vietnam and Philippines markets within two years.

"I plan to make my own two brands and import three brands to sell in Thailand by 2011. However, textile and garment exporting will be the company's main business," he said.

Henri Abitan, chief executive of Report Collection, said he expected Clothing Solution to generate revenue for his company of US$10 million (Bt33.95 million) over its five-year licence for distribution in Southeast Asia.

"I would like to build brand recognition among Thai customers of the same level we have in North America, South America and Europe," he said.

Nalin Viboonchart

 The Nation