DKSH Thailand Ltd, a market expansion service company, has overhauled its strategy for its fashion business group, shifting to licensing production instead of only distribution and marketing.
The company aims to ramp up sales over the next 2-3 years after a 25-year distribution contract with Levi Strauss & Co, the trademark owner of Levi's denim, ended last year.
Peter Hornby, the company's vice-president for fashion apparel, said DKSH was awarded production licensing and marketing contracts earlier this year for two fashion brands: Lee Cooper, a UK denim brand, and Mossimo, a street fashion brand.
He said the two brands will help strengthen its fashion business group and are expected to generate sales equal to those the company produced from Levi's.
"We changed our strategy from importing to a licensing model," said Mr Hornby.
"The deal is fantastic because Iconix Brand Group Inc, the owner of Lee Cooper and Mossimo, allows us to adapt to local needs in terms of better fabric, design, better construction and a better price point."
Lee Cooper is a top five denim brand in Thailand.
"With our new strategy, we aim for Lee Cooper to be among the top three lifestyle denim brands in Thailand over the next three years," he said.
Thailand's denim market was worth 15 billion baht last year, down from 20 billion during the period before the pandemic, said Mr Hornby.
He said demand for denim slowed during the Covid-19 crisis, but the market improved recently, reflected by the company's sales growth of 35% in the past five months.
In order to become a top three denim brands in Thailand, DKSH plans to provide omni-channel support for Lee Cooper and plans to expand the e-commerce business via marketplaces such as Pomelo, Lazada, Shopee and Central Online, said Mr Hornby.
The company also wants to increase brand relevance with consumers using a heavy dose of digital media spending, aiming to raise sales from online channels to 15-20% within three years, up from the current 5%.
Lee Cooper is available at 71 points of sale at department stores and standalone locations.
In addition, Lee Cooper plans to collaborate with a famous global character brand at the end of this year, he said.
Lee Cooper targets millennials and Gen Z customers as a priority, followed by Gen X.
DKSH Thailand recently launched Mossimo street fashion brand, targeting people aged 15-30 who love the outdoors and extreme sports.
"We chose lifestyle denim and streetwear brands because we foresee the casual wear trend as continuing to grow," said Mr Hornby.
"The pandemic forced consumers to prioritise comfort and affordable style. This is a segment where DKSH can drive market share in Thailand."