Oishi expands portfolio with an eye on sustainable growth
With a rapidly changing market landscape as well as shifting consumer demand, Oishi Group is preparing strategies to ensure sustainable growth both in Thailand and abroad for the next decade.
Nongnuch Buranasetkul, president and chief executive, said trends are reshaping the landscape such as changing consumer demand, disruptive product innovation and digital immersion.
"Consumers now need more convenience and personalisation. They are also health-conscious and care about the environment," she said. "The company will push the business forward in line with changing consumer behaviour."
Oishi plans to grow its portfolio share with innovation and new product development, expanding stores and new distribution both in Thailand and abroad. It also wants to diversify sales from food, beverages and packaged food. The company has an improved production process and hopes to improve the customer experience.
Oishi is committed to connecting with customers through the digital channel and third-party platforms, while encouraging professional development, said Ms Nongnuch.
The company will focus more on health and wellness by developing new food and beverage recipes that are healthier. It has built digital platforms to develop communication channels for its customers to ensure quick service.
She said Oishi Group's parent company, Thai Beverage, has also partnered with Carnegie Mellon University to apply technology for its food business.
"With the new technology, Oishi will no longer only serve customers at our restaurants, or at homes or offices, but also at parks, gyms or on public transport during traffic jams," said Ms Nongnuch.
The company has prioritised sustainability by developing innovations that are good for society and the environment, including building an environmentally-friendly plant and developing an efficient factory waste disposal system, she said.
Japanese food a staple
Paisarn Aowsathaporn, executive vice-president for food, said the company plans to open 26 new restaurants this year.
Oishi has also developed another online ordering channel (in addition to its existing 1773 hotline) and a new platform, www.oishidelivery.com, in cooperation with leading local providers of on-demand food applications such as GrabFood, Line MAN and Foodpanda.
Mr Paisarn said the company is keeping up with changing market trends by building the Shabushi "24-Hour" to cater to urban lifestyles and a sleepless society.
It also wants to spin off new brands including Hou Yuu premium restaurant and Sakae dessert store as well as Oyoki premium soft-serve ice cream shop, strengthening Oishi's portfolio by targeting high-end customers. The first Oyoki was opened at Silom Complex's B floor on Nov 28, 2019, with a second branch planned for Samyan Mitrtown in Bangkok.
Ready-to-eat a pillar
Mekhala Nethipo, senior vice-president for packaged food, said over the past several years, the 40-billion-baht ready-to-eat and ready-to-cook food market has been playing a stronger role in urban lifestyles because of quality products, convenience and a greater variety of products.
The company sees instant food as important, with wide market opportunities by building the Oishi Eato brand to become more well-known and reinforcing the company's leadership in Japanese-style ready-to-eat and ready-to-cook foods.
It plans to develop products that are different and outstanding in terms of format, taste, nutrition and packaging to cater to varying consumer needs.
The company also wants to build strong distribution channels such as convenience stores, hypermarts and supermarkets, covering food service providers through synergistic partnerships with other subsidiaries within Thai Beverage Group.
Green tea rebound
Jesdakorn Ghosh, senior vice-president for beverage, said the ready-to-drink green tea market has started to rebound after being hurt by the excise tax. However, consumption has yet to recover to the same level as in 2017 when the market value was 13.3 billion baht.
Oishi plans to stimulate consumption by expanding the drinker base, focusing on building a new customer base among teenagers. Oishi has linked up with gaming platform ROV to launch a campaign targeting consumers aged 13-24.
Moreover, the company is moving towards expanding its premium ready-to-drink green tea beverages by introducing a premium product -- Oishi Gold Gyokuro -- in response to the focus on health.
In addition to the domestic market, Oishi is also strengthening the Cambodia and Laos markets and building leadership in emerging markets such as Myanmar, expanding markets under the group of international trade and preparing its staff to work overseas, she said.