Mc Group, maker of Mc Jeans, is negotiating with PTT Plc to expand its jeans distribution via the state oil conglomerate's petrol station network in Thailand and elsewhere in Asean.
Chief executive Sunee Seripanu yesterday said the partnership would complement the business plans of both companies. PTT can boost its non-oil business via subsidiary PTT Retail Management Co, while Mc Group can reach more customers in the region.
Sunee: Becoming a lifestyle player
Mc Group sees huge opportunities once Asean becomes a single market late this year, as its jeans brands are affordable for Asean consumers, Ms Sunee said.
Most jeans sold in regional countries are international brands.
"It'll be challenging, but with the help of PTT's petrol station network, we hope to become the top international jeans brands in Asean," Ms Sunee said.
PTT has petrol stations in Laos and the Philippines.
In Thailand, PTT stations upcountry are commonly frequented by people also buying consumer goods, snacks, beverages and ready-to-eat foods from convenience stores on-site.
These people have high spending power as well, Ms Sunee said.
She said if negotiations with PTT were concluded, Mc Group would open shops at some stations nationwide in the first half of this year.
These shops will have space of 100 square metres and sell not only jeans and other clothes but also lifestyle items such as Mc luggage.
The company also plans to offer online sales this year as a new channel not only for local customers but also foreigners, particularly Chinese. Both fashion and lifestyle items will be available online.
"Mc has been a well-recognised jeans company for four decades. Our new strategy will make us a fashion and lifestyle player," Ms Sunee said.
Besides the PTT venture, Mc Group plans to open an additional 60 Mc shops this year at a cost of 200 million baht. The company will also enlarge space at some existing stores by 50% to support the introduction of new collections.
Sales growth of 20% to 5 billion baht is expected this year. Mc accounts for 40% of Thailand's 10-billion-baht jeans market.