Ashley, a popular US furniture brand, has entered Thailand to capitalise on growing demand and recovering purchasing power here.
Todd Wanek, president and chief executive of Ashley Furniture Industries, said the company saw opportunities for business growth in Thailand, where furniture demand and consumer purchasing power are rising.
Ashley is partnering with Chic Republic, the home furnishing and decor chain, whose branches have a customer base similar to Ashley's, Mr Wanek said.
"Thailand is a critical and potentially huge market for Ashley, due to fast-growing middle-class affluence and a population of 70 million," he said. "There is huge demand for American contemporary and transitional looks in Thailand. This is why Ashley took the time to find the right partner, test the market thoroughly and made this decision after more than three years of finding the right fit."
With Chic Republic's growth expansion plan, American-style furniture is expected to receive a good response from middle- to high-income customers, leading to an increase in revenue growth, Mr Wanek said.
Ashley has experience in furniture manufacturing and has been operating globally for more than 70 years. The company has more than 850 branches in 150 countries.
Ashley started business development in Asia-Pacific five years ago. It had global sales of over US$6 billion (198 billion baht) last year.
International sales account for 5% of Ashley's total sales.
"This is a relatively small contribution at this point. Asia is one of the fastest growing regions for us, achieving double-digit growth year-on-year," Mr Wanek said. "Our fastest-growing region is the Caribbean islands, but we do envision the Thai market to be one of the next rapidly growing markets for us. This is why we are opening four Ashley Home Stores within the next three months in Thailand."
Kijja Pattamasattayasonthi, Chic Republic's chief executive, said the company at first will sell Ashley products via www.chicrepublicthai.com and four retail stores in Bang Na, Pradit Manutham, Ratchaphruek and Pattaya.
"The outlook for furniture and home decor in the remainder of 2018 and next year has a growing tendency, with support from middle- to high-income customers whose spending confidence has increased, as well as support from the increasing numbers of low-rise and high-rise high-end property projects," Mr Kijja said.