The Thai beauty companies Srichand United Dispensary Co and Karmarts Plc have set their sights on international expansion.
Rawit Hanutsaha, chief executive of Srichand, said the company wants to aggressively expand the business abroad, with a focus on Indonesia, owing to its substantial beauty market and population.
The company is in the process of identifying the right distributors in Indonesia, while it has also placed Malaysia on its radar.
Srichand has already made inroads into international markets, including Beijing, Laos and Japan, with its products now available in over 2,000 drug stores in Japan.
Mr Rawit believes that if Srichand products can gain acceptance in Japan, expanding to other countries should be relatively straightforward.
Exports account for only 5% of Srichand's total sales.
In addition to expanding into new markets, the company hired actor Supassra "Kao" Thanachat to endorse Sasi, a sister beauty brand of Srichand, targeting customers aged 15 to 30.
Mr Rawit emphasised the need for creativity and differentiation to thrive in Thailand's competitive beauty market, which is valued at over 170 billion baht and has an average annual growth rate of 5-6%.
"The beauty market in Thailand boasts a substantial value of over 170 billion baht, with an annual growth rate averaging around 5-6%. This impressive market size is accompanied by fierce competition, as new entrants continually make their presence felt," he said.
"However, we believe our brand will become more compelling if we develop our products with creativity and differentiation from rivals."
The firm is also exploring the possibility of launching a new brand focused on health and wellness, capitalising on global trends and Thailand's ageing society.
It expects its sales to reach 1 billion baht this year, up from 730 million baht in 2022.
The Srichand brand contributes 70% of these sales, with the remaining 30% generated by the Sasi brand.
Wongwiwat Theekhakhirikul, assistant managing director of Karmarts, the producer and distributor of Karmart beauty and cosmetic products, said the firm recently formed a strategic partnership with Marubeni of Japan and Quadriga Private Equity for a collaboration to increase its sales to 4 billion baht within three years.
Mr Wongwiwat said the firm aims to increase overseas sales to 15%, from the current 11%.
Karmarts exports its products to 19 countries, including Myanmar, Laos, Cambodia, the Philippines, Middle Eastern nations, China and Taiwan.
"With the existing capabilities and expertise of our new business partners, we see greater opportunities to expand our business through mergers and acquisitions, co-development with brand owners, or providing original equipment manufacturer services," he said.
Karmarts expects its sales to reach 2.4 billion baht this year, with overseas sales accounting for about 270-280 million baht of the total.