Two specialty store chains are preparing strategies to respond to fiercer competition in Thailand's health and beauty sector.
Prapaphan: Boots to open 30 stores
Central Watson Co, the local operator of Watsons specialty stores, plans to spend 350 million baht to open 50 new stores, renovate existing stores, build brand awareness and manage customer relationships.
Archrival Boots Retail (Thailand) Co plans to open 30 outlets this year and revamp its Botanic line, one of its best sellers.
Executives from Watsons and Boots are optimistic about the outlook of health and beauty products this year after enjoying strong sales growth in the previous fiscal year.
Rod Routley, managing director of Central Watson, said the opening of 50 branches will bring its total to 304 by the year-end.
"We continue to make a substantial investment in new stores, product development and customer relationship management because we are confident in the Thai market, where Watsons is well positioned," he said.
Central Watson achieved double-digit sales growth last year. Customer feedback was very positive for its online marketing campaigns. Its rising sales momentum will continue this year, though the market is very dynamic with the arrival of many new players.
While their own brands can boast big sales, Boots and Watsons also plan to add more products to their portfolios this year.
Watsons' brands had sales growth of 25% growth last year, so the company plans to add more than 100 own-brand items, focusing on skincare, personal care and hair care.
Prapaphan Ploysangngam, merchandise and marketing director at Boots, said its plan to open 30 new stores will take its total to 257 by the end of this year.
Each new Boots store requires an investment of 2-4 million baht depending on store size. It also plans to renovate stores and adjust store layouts to add new products, while some locations will get more space.
Boots has freshened its Botanics beauty line for the first time in five years with changes to its packaging and formula.
Boots claims the new Botanics range contains effective natural extracts from all over the world. The line focuses on cosmetics, hair care, hand and body treatments and men's products.
Thailand is the third-largest market for Botanics products after Britain and the United States, which have 3,000 stores each.
"That is why Thailand is the first country outside the UK for the launch of new Botanics lines," Ms Prapaphan said.
She said Boots is looking to source some natural extracts in Thailand.