VC Fabric Co Ltd, the leading fabric and soft furnishings supplier, aims to expand to Asean this year to cash in on opportunities from the formation of the single market.
Some VC Fabric products and pillows are on display. The company expects the Asean market liberalisation to drive sales.
Managing director Viboon Woraditkittikul said the company expects a lot of business opportunities once the Asean Economic Community (AEC) is fully operational in 2016.
"We are talking with a number of companies in Myanmar to form a joint venture to expand our business over there. The soft furnishing business has large room to grow in Asean," he said.
Economic liberalisation under the AEC will remove import taxes that are now hindering growth.
"We strongly believe that if we can secure a deal in Myanmar in the second quarter of this year and expand into other countries, our export revenue will increase by 3-5 times," Mr Viboon said.
Last year, the company's revenue from exports was only 10% of its total revenue of 500 million baht.
In Thailand, VC Fabric is expanding its retail customer base to attract home and condominium owners on the back of the booming property market. It will promote its fabrics through 3,000 dealers after previously focusing on wholesale channels.
To enter the retail channel, VC Fabric has introduced Passing of Prints, a collection with more than 500 patterns, and promoted it through its website, Facebook and print media.
It will open a new showroom at Bangkok's Crystal Design Center in May to display its products and serve as a service centre.
"The B2C [business-to-consumer] segment will be an important driver to boost domestic revenue growth this year," Mr Viboon said.
VC Fabric expects its revenue will grow by at least 18% to 649 million baht this year before reaching 1 billion baht by 2017.
VC Fabric continues to grow in the business-to-business (B2B) sector thanks to government investment, higher demand from local consumers and the rising purchasing power of foreign customers.
A leading property developer has announced that it will launch more than 200 new projects with about 100,000 units this year.
Mr Viboon said the fabric market has about five key players. It is not easy for new players to enter the sector because they face difficulties in managing the changing stock of design-oriented products.VC Fabric has as many as 3,000 stock-keeping units.
Mr Viboon said the margin of the business remains good and the company has room to cut its prices if its competitors want to wage a price war.
About the author
- Writer: Chadamas Chinmaneevong