Minor brand expanding into lifestyle
European startup purchase planned
Minor Corp Plc, the fashion and marketing arm of Minor Group, is expanding its lifestyle portfolio under its own brand for the first time since establishment in 1967 to expedite business growth.
James Richard Amatavivadhana, the company’s chief executive, said to fulfil the expansion plan the company is in the process of buying an European startup.
He said Minor Corp already signed a memorandum of understanding (MoU) with the company and is conducting due diligence. The deal is expected to be signed and announced by the end of this year.
Mr James refused to provide any more details, saying only the firm in focus is the owner of the products that fit millennial lifestyles and is large enough to drive sales of Minor to reach 15 billion baht over the next five years.
“This is our first own brand since our establishment. It will change our game plan as we market our own products in addition to being a distributor, which always carries risk,” he said.
Minor Corp is one of Minor Group’s three core business pillars, along with hotels as well as food and lifestyle.
Mr James said building the company’s own brand is part of a corporate strategy to grow the portfolio over the next five years, bringing new brands to the portfolio, entering new markets and cleaning up poor-performing business.
“We will build our brand via various strategies, such as mergers and acquisition or joint ventures with local or international companies,” he said.
“We want to expand our own brand to the international level like Minor hotel and food business one day.”
Apart from having its own brand, Mr James said the company is set to clean up underperforming products.
Minor Corp has already stopped distributing some products that are not its core competency such as Red Earth, an Australian cosmetics brand.
The company also plans to stop selling the American apparel brand Gap in Thailand in the near future after more than five years under the Minor fashion portfolio.
He said Thailand’s fashion industry has rapidly changed over the past few years, with many international fast fashion brands jumping to the local market. This has changed the way Thais buy fashion, said Mr James.
He said the company never stops looking for new products for its portfolio. Earlier this year, the company acquired the right to market OVS, an Italian fast fashion brand, in Thailand to capitalise on the country’s booming fast fashion segment.
Thailand’s fast fashion market is very attractive given the growing demand and low competition. There are only 10 major brands available in the market, which is estimated to be worth 30 billion baht a year, he said.
“However, the fast fashion business remains a new area for Minor, so we need a learning curve to adapt our capability,” Mr James said.
There are 16 brands under Minor Corp’s portfolio, such as Charles & Keith shoes, Esprit, Brooks Brothers and Bossini apparel, Anello and Tomi bags, and Save My Bag, which was added early this month.
He said the company is working to raise the bottom line of its 500 retail stores.
“This year has been tough for the fashion business. Consumers have many alternatives for brands and channels to buy products. Despite this, our revenue has managed to grow in double-digits,” said Mr James, attributing the growth to new brands in its portfolio, extending existing brands and entering new markets.
Recently the company adjusted its strategy for the Esprit brand by negotiating to become a licensed brand rather than just an importer of finished goods.
As a licensed brand, the company can get involved with products and produce selections that it believes matches Thai demand.
Minor Corp also upgraded its Esprit stores in order to be more modern, said Mr James.
“Minor is no longer a fashion company, but rather a lifestyle company providing a wide range of products to customers, particularly in novel and exciting areas that other companies have not explored,” he said.