Central Marketing Group (CMG), Thailand's market leader in the distribution of more than 40 lifestyle brands under Central Retail Corporation, expects its fashion business sales to exceed 10 billion baht this year.
According to Edwin Yap Hawson, the company's president, CMG's fashion business posted 34% year-on-year growth in the first half of 2023, with sales prospects for the full year likely to grow to more than 10 billion baht, propelled by investments totalling 1.3 billion baht to accelerate the expansion of brands and platforms.
"Fashion has substantial avenues for growth for us across diverse segments such as apparel, footwear, accessories and watches," said Mr Hawson.
"We have consistently elevated our fashion brands portfolio to ensure it remains top-of-mind and pertinent to a wide spectrum of customers."
In recent years, CMG experienced a robust rise in demand for premium fashion, street fashion and comfort-focused fashion, attributed to the preferences of Generation Y and Z customers.
He said the Thai demographic has emerged as one of the most fashion-forward within Asia.
"We've harnessed innovative strategies to curate our merchandise assortment, effectively catering to the distinct tastes of our local clientele," said Mr Hawson.
"Our endeavours have attracted a significant influx of fashion-savvy tourists, establishing Thailand as a distinguished fashion hub within Southeast Asia."
The company distributes more than 40 lifestyle brands covering fashion, beauty and technology.
Fashion constitutes two-thirds of CMG's total revenue, emerging as its predominant business category.
Jitrudee (Joyce) Panitpon, head of the fashion and watch category at CMG, said fashion is considered a core enterprise at the company.
With a line-up of more than 20 top-tier brands across the luxury, premium and mainstream segments, CMG has cultivated a diverse assortment catering to a broad spectrum of people, she said.
The portfolio includes renowned labels such as Polo Ralph Lauren, Emporio Armani, Calvin Klein, Guess, Tommy Hilfiger, Casio, MLB, A|X Armani Exchange, G2000, Lee, Wrangler, Jockey, John Henry, FitFlop, Skechers, Crocs and Hush Puppies.
The company's robust distribution network comprises more than 1,900 points of sale, playing an instrumental role in propelling CMG's sales.
According to Ms Jitrudee, sales in the fashion category this year have already surged by more than 16% year-on-year, with projections indicating a continued upward trajectory throughout 2023.
She said of particular note is the exceptional performance in the premium fashion category, with sales growing by 131% and 49% from 2019 and 2022, respectively.
Ms Jitrudee said CMG's success within the fashion sector can be attributed to its dynamic approach, consistently incorporating new brands into its portfolio each quarter and seeking strategic partners that can amplify the scope of its operations, which fosters collective growth and success.
The company also built a strong presence in online sales channels by launching an e-commerce site for its top brands, creating Tiktok stores, and live broadcasting across numerous social networks.
These initiatives have enabled CMG to effectively engage a wider array of target audiences, she said.
"The most critical factor in our success is our employee development," Ms Jitrudee said.
In its bid to maintain market leadership in fashion and prepare for possible disruptions, CMG strives to be a talent hub in retail disciplines with a desirable company culture for the new generation, she said.
Mr Hawson affirmed CMG's commitment to being the uncontested leader in Thai retail fashion. This pursuit is underscored by delivering unparalleled customer experiences across every touchpoint and a relentless drive to infuse novel brands and fashion trends into the Thai market, he said.
Anchored by a portfolio spanning fashion, beauty and technology domains, CMG wants to secure its place as the No.1 trusted provider of lifestyle brands among Thais, Mr Hawson said.