ICC International Plc, a cosmetics and fashion distribution arm under the Saha Group, is set to withdraw some fashion brands from the market in a bid to increase management efficiency.
The company is evaluating the sales of its own and licensed brands, said Thamarat Chokwatana, a director and executive vice-president.
If any brand is seen to have a low market opportunity or make losses, it will be withdrawn.
"We expect to withdraw about 10 brands in the next 1-2 months," Mr Thamarat said.
ICC aims to improve efficiency and reduce losses during the slowdown in consumers' purchasing power. It also wants to focus on profitable brands to respond to fiercer market competition.
However, ICC will continue to launch new high-potential brands.
At present, 80% of its sales come from only 20% of its 60 brands.
Four brands contributing major sales are Wacoal (lingerie), BSC (cosmetics and fashion clothes), Arrow and Lacoste. Wacoal contributes the highest sales of about 3 billion baht or 20% of total sales.
Mr Thamarat said ICC's fashion business continued to grow in the first half of this year despite the lacklustre economy. The sales rise was due to cooperation between its suppliers.
Sales of its Wacoal brand increased by 7-8%, down from an earlier projection of more than 10%.
"It's difficult for us to stimulate spending if consumers already have a large financial burden. I am very concerned about the country's politics. In July, sales of Wacoal declined by up to 30%," Mr Thamarat said.
ICC may use a pricing strategy for the first time to stimulate Wacoal sales in the second half.
The company will launch new Wacoal lines with attractive prices of 400-500 baht, compared with 500 baht or more for existing lines.
Moreover, it aims to reduce overall operation costs and stock inventory to be in line with sales, which will be lower than forecast.
ICC will also boost Wacoal sales by selling its products through direct marketing. It is joining hands with TV Direct, a TV home shopping company, to sell some Wacoal collections via its TV channel in the next 1-2 months. If it works, the company may produce exclusive collections for TV Direct.
ICC expects sales of Wacoal products to grow by 20% to reach 3.2 billion baht this year.
Shares of ICC closed yesterday on the Stock Exchange of Thailand at 40.50 baht, up 25 satang, in very low trade worth 4,000 baht.