Labrador, the designer and maker of eco-friendly stationery and home decor, was really ahead of its time.
A leather accessory bag
More than 10 years ago, when most trendy products were imported and sold at inflated prices, an entrepreneurial young couple decided to set up a company that would make environmentally conscious stationery, accessories and home decor and sell them at local prices. Thus Labrador was unofficially founded in 2003.
"We felt we could make and price them reasonably," said Supreeya Kulthaveesup, 38, director and one of the founders.
Husband Anek Kulthaveesup, the other founder and now Labrador’s design director, said the company started out as a hobby. "Back then, I wanted to make products that we wanted to use ourselves."
At that time, Mr Anek wanted to do something that created value, so he decided to quit doing freelance work and throw himself into Labrador fully. In 2005, Labrador was formally registered.
The core idea of the company is to produce products that the founders, and those with similar taste, will enjoy, no matter if that limits its customer base.
"Our starting capital was probably no more than 100,000 baht in 2003. By 2005, we had more than that," said Mr Anek, 37.
Mrs Supreeya said "it was really more 100,000 baht" because they also used facilities at home and their own materials. The starting capital was used to build a new factory and buy new equipment.
Mr Anek said it was difficult to know when the company broke even because their products were sold through the consignment system. But he was sure it took no more than a year, a very short time in business terms.
Initially, Labrador products were available at Loft and Central and consisted of lines ranging from stationery to bean bags.
"It was not as focused as today because the company’s products were sold in so many different places that there was no need to focus on one," said Mr Anek.
His wife said they didn’t know who to contact about selling their products. "It was difficult at first but we continued to call and call until we found someone," said Mrs Supreeya.
Mr Anek recalled the lack of similar products in the early days. "They began to sell like hot cakes, to the point that we could not make enough," he said. "Or we may have made only 20 of an item and they would all be sold out. Now we have a lot more than that."
He said every brand has its own characteristics. Even if it has been copied by others, they could not copy everything. Sometimes customers buy products not for the face value. "People buy the item that they think represents them most, so the price is less of a consideration," he said.
As interest grew, Labrador products started to be sold in more stores, including Propaganda, SCG Experience, Q Concept and B2S.
At the same time, Labrador started participating in trade fairs such as Bangkok International Gift Fair and Bangkok International Houseware Fair to meet customers and receive direct feedback, said Mrs Supreeya.
Through such fairs, Labrador was also able to meet companies that could export its products overseas, a step that had its own challenges.
Mr Anek recalled there were overseas clients that wanted Labrador to make products for them to be sold under their brands.
"I set a rule that I will only sell overseas under the Labrador brand, no matter if it sells or not. Our overseas partners may not be big but they share our values," he said.
Labrador has also been a familiar name at prestigious French trade fair Maison et Objet in Paris for the past five years.
"When we first went there, exhibitors mostly consisted of Europeans, and Japanese businesses made up the bulk of the Asian exhibitors. There was little Thai presence, partly because the organiser selects exhibitors and the cost of attendance is very high. Not many exhibitors make a return trip," said Mrs Supreeya.
Mr Anek said part of the problem is the country's branding. "When people think about Thailand, they often think about food and beaches, not designs."
Labrador now exports its products to 20 countries around the world, with two Labrador stores in Singapore and one to launch soon in the Philippines.
Meanwhile, in Thailand, the company began to realise that consignment might not be the best way to fully express its brand values.
"We are an environmentally friendly company and this cannot be portrayed when people only know Labrador as a design brand of cool and hip products. We thought that if we wanted to communicate with our customers, we would need our own store," said Mrs Supreeya.
"A Labrador store would allow us to show what the company represents and to create our own atmosphere and brand identity while communicating with our customers directly. That was our main objective."
Labrador's first retail space was established at Terminal 21 shopping centre in 2011, followed by another at Silom Complex in August last year. Other stores will open soon at Siam Square One and Central Embassy.
Labrador produces leather accessories and stationery under the Labrador, Labrador Paper, ReLabrador and Sonn brands. Its sales revenue grew by 20% last year.
The company also conducts research, design, sales and 90% of production in-house. Mr Anek said Labrador has a small number of employees that are good at what they do.
"Many have asked me about what we will do next after Labrador has achieved success. But I don’t know what success is. The thing is I don’t measure success in monetary terms. I created the company because it was fun and allowed us to do what we wanted and to express my creativity," said Mr Anek
"I don’t know where the company will be in five or 10 years, but I feel that Labrador reached its full potential when we opened our own shop, so I want to see the result of all our work."
