Central Department Store has launched a multi-brand beauty store targeting millennials and the overall market.
Tapida Norpanlop, managing director of KIS Beauty Store, said for beauty markets, the prospects globally and in Thailand are promising. She cited a Euromonitor report that found the world's beauty market was worth 15 trillion baht in 2018, a rise of 4% from 2017.
Thailand's beauty market was estimated to be worth 220 billion baht in 2018, up 7.4% from 2017. Of the total, 39% comprised skincare, with hygiene making up 31%, haircare 14%, makeup 12% and fragrance 4%.
She also cited a Kantar Worldpanel Thailand report that found of total spending on beauty products, 43% came from millennials aged 25-34.
Last Saturday the company opened KIS, its first multi-brand beauty store, on the fifth floor of CentralWorld spanning 1,000 square metres.
The new store offers 800 beauty brands and 80,000 items for all customer groups, mainly targeting millennials and foreign tourists. About 10% of the items are exclusive to the store.
"We aim to become the market leader in Thailand by leveraging Central group's decades of experience in the beauty market. KIS differentiates itself from other players in the market through its store design and other elements," Ms Tapida said.
"This is the first time famous brands like Chanel, Jo Malone and La Mer will be available at a multi-brand beauty store in Thailand. We also have a Live studio and Gaga bubble milk tea store in-store."
She is a third-generation member of the Chirathivat family, who own a retail empire of over 300 billion baht in Thailand and overseas.
Ms Tapida said Thailand's beauty market has many multi-brand beauty stores with both international and local brands, including Sephora from the US, @cosme Store from Japan and local players such as EVEANDBOY, Hello Beauty Thailand, Hej Street Beauty and Beautrium.
The company plans to open two more stores at Central Lat Phrao and Zen Department Store later this year. The budget is 170 million baht for all three KIS stores.
In 2019, the company expects sales to reach 150 million baht. KIS plans to open 27 stores during 2020-23, with sales reaching 3.5 billion baht in five years. Central wants to take KIS Beauty abroad in the future.
"KIS will further strengthen Central's retail portfolio and generate additional growth separate from our core beauty business in department stores, which targets customers aged 25-60," said Ms Tapida.
Roughly 60% of products at KIS stores are cosmetics, 30% are skincare and 10% are fragrances.