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NUM NUENG MARKETING

Volume up but profit falls

Fierce competition in the market has forced garment-maker to alter its strategy

Published on February 11, 2008



As the recent fashion for pink and yellow polo shirts spread nationwide, it created fierce competition in the garment industry and pushed Num Nueng Marketing to return its focus to producing T-shirts with screen prints instead of polo shirts.

Num Nueng Marketing is the producer of Pao Ying Shub-brand T-shirts and polo shirts. A few years ago it was very successful in manufacturing family-style garments and festival T-shirts.

"In 2004 and 2005 sales revenue grew nearly 100 per cent a year due mainly to the popularity of the family concept.

"Then two years later it fell 30 per cent when local garment-manufacturers lined up to produce pink and yellow polo shirts. So we have had to adapt to survive," said managing director Charlie Ratanawachirin.

In the peak years, Num Nueng Marketing generated revenue of Bt200 million a year, but that has fallen to between Bt100 million and Bt150 million in the last two years.

"Those two years have been tough for us. There have been many players in the market to serve the high demand. Although they could create market volume, our sales revenue did not rise following the increase," he said.

Screened T-shirts used to be the company's core product until Num Nueng shifted to the family concept with logos like "I love Dad and Mum". Charlie said family T-shirts and seasonal products were now 80 per cent of production, the rest being screened T-shirts. This year the company will increase the proportion of screened T-shirts to 40 per cent.

"Strategy this year is a quick response from consumers and

focus on marketing to enhance sales revenue. I'm targeting Bt150 million in sales revenue this year," he said.

Nalin Viboonchart

The Nation



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