Tanachira Retail Corporation Co, an importer and distributor of lifestyle fashion brands, wants to expand into the health and wellness sector because of an increase in health-conscious consumers and a rebound in tourism.
Chief executive Tanapong Chirapanidchakul said the Thai tourism industry is recovering from the pandemic, which will benefit the food and beverage and health and wellness sectors.
Most of the company's restaurant and spa customers are foreigners, he said.
"The upper to middle-income groups are growing. With the rebound of foreign tourist arrivals, this will be the main driver of growth for Tanachira in 2024," Mr Tanapong said.
For health and wellness business in Thailand, the company predicts a trend of increasing demand which may surpass supply.
"Thais are becoming more interested in taking care of their health and well-being, and the company can target both foreign tourists and locals," he said.
Harnn Wellness & Hospitality has 14 branches, including four owned and operated in Thailand, and 10 franchises: four in Thailand, three in Japan and one each in Hong Kong, Vietnam and Saudi Arabia.
Foreign visitors make up 60% of Harnn's customer base, with 40% Thais. Of the foreigners, more than 90% are from Asian countries.
Mr Tanapong said Tanachira may consider expanding its wellness business to around 2-3 locations per year.
He said Harnn's sales on Tmall Global, a Chinese e-commerce platform, increased from 5 million baht in 2020 to more than 50 million in 2022.
In addition, Harnn is expanding its brand presence in China through a multi-tier franchising model via a joint venture with a Chinese partner, with Harnn holding a 55% stake.
This cooperation should help Harnn to access both offline and online markets in China, said Mr Tanapong.
The company expects to export its product to China in the third quarter this year.
In three years, the company aims to generate 700 million baht in revenue from Harnn and roughly 1 billion baht from China.
He said one strategy this year is to add branches of potential brands both domestically and internationally, for a total of 23 new branches.
Moreover, the company is preparing to launch a leading fashion brand from Japan to expand the customer base to the young generation and increase brand awareness for Tanachira.
The brand is expected to launch in the second quarter this year.
Mr Tanapong said the company targets a 20% revenue increase in 2024.
This will be driven by same-store sales growth of roughly 10% and new store sales growth of 10%, he said.
The growth will be supported by adding new brands in the fashion business group, launching new product collections, expanding the ecosystem into the food and beverage business, and fully expanding Harnn into China.