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TRAVEL
CHADAMAS CHINMANEEVONG
Mr Wasit shows off a dry bag that will be among the increasing number of higher-margin products offered by Outdoor Innovation. |
Outdoor Innovation, a distributor of camping gear, is moving towards more innovative products and product diversification after hurting its margins and image from entering into a price war over the past few years. The company plans to introduce waterproof and welded products such as jackets, backpacks, laptops, cameras and dry bags. They are now under development and expected to be launched in the last quarter of the year.
Outdoor Innovation owns three brands: Travel Gear, Karana and Equinox. It also supplies tents to the popular Farm Chokchai Boutique Camp in Nakhon Ratchasima. Its best-selling products are tents, sleeping bags, dry bags, mattresses and lifejackets.
Managing director Wasit Sirodom said in order to sustain growth in the long run, the company must focus on product quality instead of prices.
After entering into the price war, he said net profit margins were only 15% from 25% previously. Importantly, lowering prices also hurts its image.
''Being a top regional brand is our goal. So, we seriously aim to upgrade the brands and begin to expand our business abroad,'' he said.
To reach the goal, it plans to expand into other Southeast Asian markets within five years.
''If we achieve the target, the proportion of exports will increase to more than 50% of our total sales, from only 10% now,'' said Mr Wasit.
The company's sales were 120 million baht last year and the target for this year was 150 million baht. It has set aside 4.8 million baht for marketing.
Through a joint venture with a foreign partner, the company would open a shop in Malaysia, its first abroad, by the end of this year. It also plans to open one shop each in the Philippines and Singapore next year.
The company's research shows that 70% of customers who purchased camping products, especially tents, are families.
''The government has started to promote domestic camping travel after the number of inbound tourists has dropped this year. The trend bodes well for the camping market,'' he said.
The market for camping products is valued at around 300-400 million baht a year and grows by 20% annually, he estimated.
Outdoor Innovation has 44 counters at department stores and five stand-alone outlets nationwide. It may open a new flagship store with space of 1,000 square metres in the second half of the year if it can settle the deal with a department store.
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