Princess Beauty & Spa looking to expand overseas

The Nation

Princess Beauty & Spa, a 20-year-old beauty-centre chain, will seek spa business opportunities overseas next year, as it believes there is more room to grow this segment abroad than at home.

President Kanokporn Khematae-chit said recently that several European entrepreneurs had approached the company to be the adviser for their beauty businesses. Talks are taking place, and she is very confident that several contracts will be concluded next year.

Another possible business model is the co-invested firm. Princess Beauty & Spa has already co-invested with the five-star hotel Westin in Bangladesh to operate a spa service for a year. It spent more than Bt10 million on this, its first overseas venture.

The company also has a chance to operate other spas in Westin hotels around the world, as well as in Thai hotels, she said.

"I believe the beauty business in the local market has more room to grow, but not for spa business. All sizes of spa service centre are mushrooming nationwide, so the market is full, but there is great demand for spa therapists overseas, and this is why we have to expand abroad," she said.

Kanokporn said the company had also invested more than Bt20 million to operate a "magnificence spa service" named Princess Wellness Spa in a six-star hotel in the Ratchaprasong area of Bangkok. She declined to name the hotel but said the operation would start early next year.

In the local market next year, she said the business would for the first time expand on the franchising model, as the company did not want to invest by itself. Moreover, it can expand the number of Princess Beauty & Spa centres more rapidly by franchising.

The company has sold one overseas franchise, to a business in Laos.

She added that many Princess Beauty & Spa clients had asked her about purchasing a franchise. She has thought about introducing the business model for many years, and it should take off locally next year.

"It is the right time to expand my business on the franchise model. This is a good alternative for expanding my business amid the economic slowdown. I can increase the number of beauty-service centres better than in the past, without investing a huge amount of money," she said.

Kanokporn expects to have at least 10 Princess Beauty & Spa centres by the end of next year. There are currently four Bangkok branches, at Siam Square Centre, Town in Town, Sukhumvit 33 and Central Rama II.

The company's 2009 revenue is targeted to increase by 10 per cent, better than this year's estimated zero growth.

Princess Beauty & Spa franchises will cover 150 square metres, smaller than the average size of 400-500 square metres for company-owned centres.