Tanachira poised to submit IPO filing
Tanachira Retail Corporation, the importer and distributor of lifestyle fashion brands including Harnn, Marimekko and Pandora, is scheduled to submit its filing for an initial public offering (IPO) with the Securities and Exchange Commission next month.
Chief executive Tanapong Chirapanidchakul said proceeds from the IPO would be used mainly to finance the company’s business expansion both domestically and abroad, repay debt and fund mergers and acquisitions over the next few years.
“We aim to become a regional lifestyle retail company over the next five years, adding new brands and expanding the businesses overseas,” Mr Tanapong said.
The expansion is part of the company’s strategy to reach sales of 3 billion baht during this period, of which international sales should contribute 20%, up from 4% now, he said.
Tanachira wants to shift its focus to marketing the lifestyle food and beverage segment from 2023-25.
The company was awarded a 10-year contract to open the first UK famous casual and premium dining restaurant in Thailand this year.
Under the agreement, Tanachira is allowed to open 10 restaurants, with a total investment of 80 million baht.
Mr Tanapong said lifestyle food and beverage is more accessible to consumers than lifestyle fashion. With its new focus, he said the sales proportion of lifestyle fashion and food and beverage is targeted to make up 50% of total sales over the next five years.
“Our business with Cath Kidston is also changing as we leverage strong brand awareness,” said Mr Tanapong.
The first Cath Kidston’s tea room kiosks in a 55-square-metre space on the first floor of CentralWorld are scheduled to open soon, with three more kiosks planned for this year.
The company also plans to open a full-scale Marimekko restaurant in a 120-sq-m space at The Emporium using a communal table concept, scheduled to start in two months.
Moreover, Tanachira expects to launch a new Scandinavian lifestyle fashion brand to the market this year, or add another Japanese fashion brand to its portfolio, he said.
Expansion plans require an investment of 100 million baht in 2023, 50% higher than last year’s investment, said Mr Tanapong.
Tanachira predicts sales of 1.59 billion baht this year, with a net profit of 150 million baht, up from 1.26 billion and a net profit of 122 million in 2022.
Of last year’s total sales, 51% came from Pandora jewellery, 17% from Marimekko and the remainder from Cath Kidston and Harnn brands.
Tanachira was established in 2011 to distribute four lifestyle fashion brands: Cath Kidston, offering British fashion accessories; Pandora jewellery; Harnn spa and wellness; and Marimekko fashion.
The company operates 150 stores in Thailand.
Tanachira already expanded Harnn into Japan and Cath Kidston in Vietnam.
The company is in the process of registering new subsidiaries in Singapore to open its first Marimekko store next month.