A little thai pampering tides germans over their doldrums

F Einert, Thann Frankfurt's co-founder, got to know Abel Teng, who is now the venture's managing director, by accident.

"We were buying Thann products in Singapore and looked at all the countries listed in the brochures, only to wonder why there was no German representative," Einert said, recalling the initial launch of the venture in 2005. Thann, a Thai brand that manufactures natural hair- and skincare products, is available in 22 countries worldwide.

So Einert and Teng did some market research in Germany and learned that an Asian brand was missing.

Teng said he knew that Germans loved travelling to Asia and that Thailand was their favourite destination. "I thought this would be a good market for an Asian brand because people know Asia and Thailand. We can bring something Asian here, something to make them feel like they are on holiday," said Teng, who used to be a make-up artist and fashion designer.

Einert said they had considered representing other brands, including two from Bali and five from Thailand, before deciding on Thann.

"Thann came across as the most outstanding with regard to the concept, brand positioning and professionalism, and also the most expensive one," he said, adding that he never based his ventures on the price of products.

"I'd rather look for a special niche. There are already hundreds of brands around. If you start with price, the cost of bringing the product over will stop you making any profit. You have to compete on a different level."

And Thann did just that.

"Thann has very high international standard but does not appeal to everybody. It has a certain target group that is not limited to race or other such segments. It is high-class. There is a certain group of people who would never buy our products," Einert said.

After having decided on the product, they approached Thann, but things did not move forward until they found the right

location, a new shopping mall right in the heart of Frankfurt. Despite the gloomy state of the global economy, with Germany one of the hardest hit, Einert and Teng opened the retail-and-spa shop in February.

Of course, they are being affected by the recession.

"We have not been selling as we hoped. The economy has affected us to a certain extent, particularly in terms of people's purchasing power. But luckily Germans would rather spend a little more if the quality is good," Teng said. "We are very confident that the products will sell. Otherwise we wouldn't have invested so much."

Despite slow sales, Teng said some products were already running low. "It's always difficult to enter a new market. You have no idea what people will buy," Teng said, adding that he never thought essential oils and tea would be their top sellers.

"We carry an exclusive range of tea, which is expensive but very good. Since Germans are not really tea-drinkers, I did not expect it to sell so fast," he said, adding that his other best sellers were lemongrass essential oil and Thann Shiso Body Butter.

Also, sales personnel are key to a brand's success. "Since most people don't know this product, sales personnel have to talk to the customers, give them the company's background and product details," Teng said. "I tried to train my staff so that customers are served the same way as they would be in Thailand."

Teng said that since the retail side was doing relatively well, his next step was to promote Thann spa services by offering special promotions and making deals with hotels, sport clubs etc.

"We decided to include the spa option because we think customers should be able to experience the products. It supports the retailing side of things," said Teng, adding that he hoped to expand the Thann brand in Germany further. "We are focusing on setting up more retail shops. There might be the second branch next year."