DKSH looks to build on solid foundation
published : 14 Nov 2015 at 01:36
writer: Krissana Parnsoonthorn
DKSH Holding Ltd, a Swiss trading and logistics company, is committed to investing more in Thailand and other Asean members.
It sees huge opportunities arising from the Asean Economic Community (AEC) and growth in middle-class numbers.
When Asean becomes a single market at year-end, Thailand will remain a major force in the region and continue to grow, president and chief executive Joerg Wolle said.
"The AEC is just a beginning, and the improvement will be seen step by step," he said.
"Connectivity and improving transport infrastructure across borders will support businesses in the region."
DKSH has focused on Asean since 2002 and built a strong distribution network in the region, which has a population of 625 million.
Several companies are looking to outsource sales and marketing to specialised service providers, freeing up resources to concentrate on manufacturing and innovation.
Mr Wolle said DKSH would continue to invest further in Thailand and other Asean members over the next three years.
DKSH has distributed products for Ichitan, Tao Kae Noi and Pantai Norasingh here at home, while Roza and Hi-Q products have been supplied in Cambodia, Laos, Myanmar and Vietnam.
Among the company's 200 most important clients, 30% are from Asia, 40% from Europe and the rest from the US. The share of Asian clients will continue to rise over the next three years.
Last year, DKSH's global net sales reached US$10 billion, with Thailand accounting for one-third of the total.
The Thai operation has four business units: consumer goods, health care, performance materials and technology.
DKSH has 11,000 specialists. Its network distributes products for 550 clients to more than 62,500 customers in Thailand.
"It's not a good year for DKSH (Thailand) and consumer confidence is very low," Mr Wolle said. "This time is different from the past, when Thailand could bounce back from several negative incidents, from coups to flooding, in the short term."
Consumer confidence and purchasing power have been hurt by the political situation and widespread drought, which have affected farm prices.
This year, DKSH (Thailand) expects lower sales growth, particularly in consumer goods, but the situation should improve next year with growth returning to a healthy rate.
DKSH wants to acquire medium-sized distribution companies to strengthen its distribution and logistics network in Thailand.