Health concerns turn to herbs
Tumrubthai is expanding as it sees demand increasing, writes Pitsinee Jitpleecheep
In light of the outbreak, people are becoming more health-conscious, which has manifested in an increased focus on herbs. Mahakhun Thepsutin, the founder of Tumrubthai Herb, the operator of Tumrubthai herbal shops, has ramped up his business as he believes the use of herb-based products will increase dramatically after the deadly virus outbreak eases.
Mr Mahakhun, 38, said his company plans to open 15-20 new Tumrubthai shops in the second half this year and another 15-20 shops in 2021.
“Thai herbal products are becoming more popular among Thais. Our customer base is trending younger, from 24 years old in the past to only 18,” he said.
The Public Health Ministry estimates the herbal products market is valued at 180 billion baht a year.
Mr Mahakhun aims to raise the number of Tumrubthai shops to 300 shops in five years, from 130 shops at the end of 2020.
As of December last year, the company operates 115 Tumrubthai shops across the country, about 60% of which are in Greater Bangkok and 40% in upcountry areas.
Mr Mahakhun dreamt of running his own business since childhood, but a herbal shop was never part of the dream.
He entered the herbal business by accident. While in secondary school, he went to Future Park Rangsit to find a part-time job at a restaurant such as MK Suki or Swensen’s, but he was rejected. Only a small herbal kiosk in front of Tops Supermarket was willing to take a chance on him.
“I worked for this herbal kiosk for one year. I gained not only income and sales experience, but also learned about all the working processes required to run a herbal shop. More importantly, I have developed a deep connection with many herbal product manufacturers who supply herbal products to that kiosk,” said Mr Mahakhun.
Everything went well until Future Park renovated its complex and the leasing contract of the herbal kiosk was terminated.
With his work experience and frequent visits accompanying his uncle, Justice Minister Somsak Thepsutin, to herbal fairs at Muang Thong Thani, Mr Mahakhun decided to open his own herbal shop at Future Park Rangsit 19 years ago. His shop fetched 8,000 baht worth of sales on the first day of opening and 90 million baht in the first year of operation.
His network of 115 Tumrubthai herbal shops are located at leading hypermarkets, supermarkets, and department stores across the country, and generated sales of 237 million baht in 2019. With the 15 new shops planned for this year, sales are projected at 250 million baht.
The shops range over four sizes, from 25-150 square metres, and provide 8,000 products covering traditional herb-based medicine, beauty products, food supplements and household items. Some 95% of customers are Thais and 5% foreigners.
Mr Mahakhun said the popularity of Thai herbal products continues to increase every year because they are easy to access and more people are concerned about health.
In the past two years, Tumrubthai’s target customers were aged between 24-45, but since the outbreak this has expanded to 18-65.
“To expand the customer base, we will open more shops at border areas as we want more customers from neighbouring countries and tourist destinations. We want Tumrubthai to be a national herbal shop brand that everybody has to visit in the future,” he said.
Mr Mahakhun also set a goal to list on the Market for Alternative Investment in 2023 to raise funds to add new shops, open training centres and branch out into related herbal businesses in the future.
The company appointed Yuanta Securities Thailand as its financial adviser.
‘‘ Our customer base is trending younger, from 24 years old in the past to only 18. MAHAKHUN THEPSUTIN Founder, Tumrubthai Herb