Rodenstock, the leading manufacturer in Germany of high-quality lenses and frames, yesterday announced a change in its Asian distribution strategy, with Thailand and China named as the priority markets.
Under the new strategy, the company will end its contracts with local distributors in selected Asian markets, instead distributing the products to all accounts and retailers directly.
Rodenstock Asia director and general manager Andy Pun said such a direct-distribution strategy fit perfectly with the dramatic change in the market situation in Asia, which has emerged as the fastest-growing economy in the world in the wake of the global financial turmoil of 2008-09.
"Over the past two years, we've reviewed the internal distribution strategy in selected markets. Thailand and China will be the two priority markets in which the company has decided to go it alone. By distributing products directly to accounts and retailers, we are able to be closer to the customers, supporting and serving them better," he said.
Pun said the company had already reached an amicable agreement with its two Thai distributors for ending their contracts.
He said Rodenstock was recognised in Thailand as a premium German brand for quality lenses and frames.
"Thailand is our priority market. We've operated a factory here for over 20 years. We set up our own sales office in Thailand five years ago. We've already built up support and local-market knowledge in this important market," said Pun.
The company believes it will do well in Thailand with the new distribution strategy. Besides its own brand, it also distributes Porsche frames here, which have proved very successful. It plans to introduce more premium licensed brands like Dunhill and Mercedes in the near future.
Pun said that Rodenstock expected to double its overall sales in Asia this year. The region will generate growth of 30-50 per cent next year.
"Asia now contributes roughly 5 per cent of company sales, but we expect that to be close to 10 per cent in the next five years," he said.
Pun said Rodenstock was also building a new Bt80-million lab facility at its plant in the Lat Krabang Industrial Estate, which will shorten the lead time in delivering finished products from Germany.
Sedtasiri Subphasavasdikul, country sales manager for Rodenstock Asia, said construction of the new lab would be divided into two phases: for conventional lenses and for free-form lenses.
The lab will start operations by midyear.
