Red Earth to re-enter market
Red Earth, an Australian cosmetics brand, will resume its sales activities in the 20-billion-baht Thai beauty market after an absence of three years.
Pink Peo Co, the distributor of American cosmetics brand Too Faced, was recently appointed the distributor and marketer of Red Earth in Thailand, replacing Minor Group, which ended its contract with Red Earth two years ago after a change in business strategy.
Peangporn Suvarnpradip, Pink Peo’s managing director, said the company signed an agreement to market Red Earth cosmetics in Thailand for five years with a renewal option for another five years.
The company will open the first Red Earth counter at Siam Paragon Department Store on May 24. After that, more counters will be opened at Central Pinklao and The Mall Ngam Wong Wan.
Red Earth will come up with younger look, new store concept, new packaging and new logo with more accessible prices.
“Red Earth was quiet in the past few years, following the popularity of American cosmetics here,” Mrs Peangporn said.
Red Earth began in Melbourne, Australia in 1991 and has continued to evolve internationally for over 20 years. The brand is now owned by a firm in Hong Kong.
Mrs Peangporn has been involved in the Thai cosmetics market for 12 years, handling cosmetics brands at Minor Group, including Red Earth. After resigning from Minor Group some six years ago, she set up her own company, Pink Peo, and became an authorised distributor of Too Faced, an American cosmetics brand, five years ago.
The distribution contract with Too Faced will soon end because of its global policy change to become a non-counter brand, and will be available only at beauty chains of Sephora.
“It’s my destiny to market Red Earth cosmetics again in Thailand,” Mrs Peangporn said. “I took two hours to make the decision after seeing Red Earth’s new business direction with a new beauty concept store, new look and new voice.”
“In the past 20 years, Red Earth’s business grew every year here, with a sales peak at 180 million baht. The brand was not only accepted in Bangkok but also upcountry.”
Red Earth cosmetics is a premium mass cosmetics brand, targeting students and first-time workers. To be more accessible, prices will be reduced by 10-25% for the relaunch.
The company expects to generate 200 million baht in sales from Red Earth cosmetics over the five next years.
Mrs Peangporn said Thailand’s cosmetics industry continues to grow every year regardless of whether the economy is good. The market is estimated to be worth 20 billion baht.
Australian cosmetics brands in the Thai market include Jurlique and Aesop, which are both under Central Marketing Group.
Apart from Red Earth, Pink Peo is negotiating with cosmetics brands in France and Switzerland to market to Thailand. The company also plans to produce its own cosmetics brand.