The heir to KCE Electronics Group has taken over the business of Thefaceshop in Thailand from a fashion company, hoping to take it among the top three South Korean skincare brands here in the next two years.
Pitharn Ongkosit (second right) with his partners Mahithorn Pongsarat (second left) and Thana Thienachariya (right) and his wife Varinda Thienachariya (left) have ambitious plans for Thefaceshop in Thailand.
Vice-president Pitharn Ongkosit said he and his friends in the media and marketing fields have come together to buy TFS (Thailand) Co, part of LM Fashion Group, which has had the rights to operate Thefaceshop in Thailand since March.
Mr Pitharn holds a majority stake in TFS and the remainder belongs to Thana Thienachariya, former chief marketing officer of DTAC and former chief executive of GMM Z, and Mahithorn Pongsarat, a media agency veteran.
His study found that skincare products and cosmetics from South Korea have enjoyed robust and consistent growth in Thailand. The brands have potential to grow even bigger.
"Thefaceshop is the market leader of skincare brands in South Korea but it's still among the top five Korean brands in Thailand. Therefore, we see huge potential to grow the brand here," Mr Pitharn said.
After the takeover, the registered capital of TFS was raised to 60 million baht from 6 million to fund skincare business expansion this year after a slowdown of marketing activities for years.
Mr Pitharn said TFS plans to spend 100 million baht to launch marketing activities to drive sales of Thefaceshop to reach 150 million baht by the end of this year, increasing to 300 million in 2015 and 450 million in 2016.
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TFS director Thana Thienachariya revealed that the company plans to adjust its prices to be in line with similar products in South Korea.
"Lower prices will also help broaden our clientele. So far, most of our customers are university students and young working adults, but with the new pricing, we expect to attract even younger consumers," Mr Thana said.
To attract these young customers, TFS has selected Kim Soo-hyun, one of Korea’s rising young heartthrobs, to be its new brand presenter. Moreover, the company plans a major shop renovation to make them look more modern and welcoming.
The first newly renovated Thefaceshop store will be opened at CentralPlaza Salaya in Bangkok on Aug 12.
TFS plans to open 10 stores in the rest of the year, bringing the number of Thefaceshop stores to 30. The company will increase the number of Thefaceshop outlets to reach 70 within 2016, aiming to become one of the top three Korean skincare brands in Thailand.
After Aug 7, the company plans to slash the prices of Thefaceshop products in Thailand to be more attractive for consumers. However, prices will still be 10-15% higher than in South Korea. At present, the price of Thefaceshop products here is one or two times higher than in South Korea.
It is forecast that the skincare market in Thailand will be worth 50 billion baht this year, with Korean brands such as Skinfood and Itude accounting for 2 billion baht.
There are about 10 Korean skincare brands available in Thailand with 100 Korean skincare and cosmetics brands available in the grey market.