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Published on November 10, 2007

Yesterday, it signed a business-partnership contract with Glorious Sun Enterprise, one of the leading fashion and lifestyle retailers in Australia, New Zealand and China and owner of the JeansWest brand, to distribute and market JeansWest products in Thailand.

Glorious Sun Group deputy CEO Peter Teo said the company planned to expand its business here because it realised the country's fashion industry was growing rapidly.

He said the company began looking for a local partner two years ago and finally decided on the Minor Group because of its long experience and potential networks in Thailand's market.

Minor chief operating officer Matthew Kichodhan said the new brand would capture the middle to low consumer market by focusing on distribution through the Tesco Lotus hypermarket chain.

He said it would become a fashion destination for Tesco Lotus's customers and indirectly boost its house-brand sales in the fashion-apparel segment.

While its competitors are local brands such as AIIZ, Ten&Co, Pena House and Giordano, JeansWest has an obvious position, as it is the first imported brand in the mass market, he said. And at a similar price range but of better quality, consumers should favour international-brand products over locally made ones.

Its prices are Bt190 to Bt990, in line with local-brand goods in the same market. He said the company could quote cheap prices for its high-quality products because its manufacturing plant was in China and enjoyed lower import tariffs from free-trade agreements.

Presently, Esprit and Bossini are the group's anchors in the middle and high-end segments. As the third anchor, it wants revenue for JeansWest to reach Bt350 million, equivalent to Bossini's sales, by 2011, said Matthew.

The company has set aside a budget of Bt15 million to promote its new brand for the last four months of this year. In addition, it plans to open 20-30 booths in Tesco Lotus next year. It can expand more rapidly than planned if it gets a good response from customers, he added.

JeansWest is the largest international brand in China, with 1,477 stores, and the second-largest casual fashion brand in Australia and New Zealand, with 228 stores. It has expanded its business to the Middle East and Vietnam.

Chalida Ekvitthayavechnukul, The Nation