Tuesday, September 15, 2009

Japanese Kinka cosmetics enter shopping malls

       Playmaxx, the sole distributor in Thailand of Japanese Kinka-brand gold-mixed cosmetics, will expand its distribution channels by entering shopping malls in a bid to increase sales 10-15 per cent.
       To date, it has been relying on a call-centre system for sales.
       Vice president Pornpimol Silakupt yesterday said the company began importing Kinka products early this year. There has been a good market response, with revenue of roughly Bt1 million a month generated despite the reliance on call-centre sales.
       Playmaxx will sell Kinka products over the counter for the first time in Siam Paragon by the end of this month. It expects to have a second counter in a high-end shopping mall later this year and plans thereafter to increase its counters by two locations every year.
       "We expect our sales to increase 10-15 per cent from roughly Bt1 million monthly after we expand into shopping malls. Our revenue target this year is Bt15 million," she said.
       In the first stages of marketing Kinka products in Thailand, Playmaxx has focused on giving out free samples. It now plans to begin advertising on television. Hakuichi, the manufacturer of Kinka, is considering approval for television commercials to be shot in Thailand.
       Kinka products are premium cosmetics in the Japanese market, where it is the leading brand in the gold-mixed cosmetics segment. All Kinka products have platinum as a main ingredient.
       Kinka has more than 30 products selling in Japan. Playmaxx has imported 12 of them for local sales, including skincare and makeup products. It plans to bring in another five products next year.
       Pornpimol said Playmaxx was also interested in expanding its distribution channels into spa-therapy centres. It is negotiating with some high-end spa centres and expects an early outcome.
       Playmaxx intends to market Kinka products through three distribution channels: the call-centre system, which will continue to serve clients upcountry; shopping malls; and spa centres, contributing 40 per cent, 50 per cent and 10 per cent of revenue, respectively. The company expects sales to grow 10 per cent next year.
       "We target consumers who are using premium brands priced at more than Bt10,000 apiece. We hope to persuade them to switch to our brand, which offers better value if you compare quantity with price," she said.
       Kinka's prices range from Bt2,000 to Bt7,000 per item.

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