After expanding its business in Thailand via authorised local distributors for 20 years, Puma, a German athletic and casual footwear manufacturer, has changed its business model, setting up its own subsidiary to run the business in Thailand.
Puma wants to become a key player in the local sportswear market in five years.
"Though we are entering the market a bit late, we believe this is the right time for Puma," said Ludwig Tsai, general manager of Puma Sports (Thailand) Co, which was established earlier this year.
The company is independent from other Puma companies in Southeast Asia.
With its own operation, he said the company will continue to work with its 12 existing partners comprising wholesalers, multi-brand retailers and leading department store groups to make Puma products easily accessible to each different target consumer group.
Puma plans to sell products through its partners and open Puma flagship stores in Thailand, while its partners can open Puma shops in other formats, including shop-in-shop stores in retail complexes.
Before the pandemic, there were 20 Puma stores in Thailand.
On Dec 1, the company opened its first flagship store on the ground floor of Siam Center mall, offering sports performance apparel and easy-to-wear lifestyle products.
Puma plans to open three mono-brand stores this year and 10 mono-brand stores next year, said Mr Tsai.
In addition, the company wants to open several multi-brand sports stores and shop-in-shop stores at department stores in 2023, he said.
Total Puma stores in all formats are projected to reach 30-40 next year.
According to Mr Tsai, it is possible 100 Puma stores in Thailand will be operating in five years, catering to demand in cosmopolitan areas and other major cities.
The company plans to refurbish selected stores in department stores and multi-brand sports retailers to create a new trendy and fresh image.
"We set up a direct subsidiary to operate the business in Thailand because we see the potential of the sportswear market here, with growth opportunities given the market size, active lifestyles and consumer purchasing power," he said.
"The market is still recovering, but we are upbeat on the prospects when all markets start opening up, with tourists returning to the same level as 2019."
The sportswear market in Southeast Asia is estimated to be worth 67.5 billion baht per year, with Thailand the largest market at 17.3 billion per year, followed by Malaysia and the Philippines.
Moreover, Thailand has higher sports participation and a preference for casual sportswear, said Mr Tsai.
To promote its brand, the company hired Luke Ishikawa as its first Thailand brand ambassador and launched the "Find Yourself Faster" campaign to resonate with Gen Z consumers.
"Puma has been around on the sports scene for 74 years. Some consumers think our products are purely for athletes, and are not conducive for casual daily wear," said Mr Tsai.
"We aim to change this perspective and allow Puma to be a preferred choice for sporty everyday wear, becoming one of the top 3-5 players in Thailand in five years."