Cosmetics to drive firm's sales growth

The producer and distributor of Oriental Princess personal care and cosmetics products, OP Natural Products, expects to achieve sales of Bt2.1 billion this year, an increase of 14 per cent over 2007, because of strong demand for cosmetics despite a national economy showing only slight growth.

Chief executive Pasana Intratip said yesterday that demand for cosmetics had grown by 56 per cent last year and by another 46 per cent in the first four months of this year. As a result, the company believes it will achieve its sales target for the year.

OP Natural Products recorded sales of Bt1.85 billion last year, an increase of 37 per cent over 2006. Forty per cent of last year's sales came from skincare products, 30 per cent from cosmetics and the rest from personal care products.

This year, the company believes that 35 per cent of its sales will come from cosmetics, 35 per cent from skincare products, and the rest from personal care products. In the first quarter, it recorded sales of Bt634 million, up 26.8 per cent from the corresponding period of last year.

"Our sales from cosmetics will increase because our prices are cheaper than high-end products, but we offer quality close to that of high-end products. Most buyers who want to reduce their budget for cosmetics products change from high-end products to Oriental Princess," she said.

Meanwhile, the company has set aside an investment and marketing budget of Bt390 million. It plans to spend Bt90 million to open 31 new outlets and the rest will be used to promote about 3,000 new products it intends to launch this year.

Currently, the company has 241 branches - 105 in Bangkok and 136 in the provinces. After opening 31 new branches this year, it will have 113 in Bangkok and 159 upcountry.

OP Natural Products launched a new cosmetic product yesterday called Monsoon Limited Edition. Only 60,000 pieces will be produced, but the company expects sales to reach Bt20 million.

"We plan to launch two or three sets of limited editions per year - in part to promote our cosmetics products, but also to service strong market demand," she said.