Suntory seeks to treble sales

Japan-based Brand’s Suntory International, a consumer product company, has set its sights on tripling sales of its food supplement business via e-commerce to 2.5 billion baht over the next three years.

The group is hoping Thailand’s e-commerce operations will become a new driver for the group’s international sales over the period, said Yuichiro Ara, head of direct business for Brand’s Suntory International, during a visit to Thailand yesterday.

Brand’s Suntory International is a subsidiary of Tokyo Stock Exchange-listed Suntory Beverage & Food Ltd.

With confidence in Thailand’s economic prospects and the Thai government, the company commenced operations at its new international headquarters in Bangkok last June.

Thailand is the fourth location in Asia where the group has expanded its business, after Taiwan, Hong Kong and Singapore.

The company is scheduled to start direct sales operations in Malaysia next month.

The group established Brand’s Suntory Trading Thailand Co five years ago as a new marketing channel to sell its food supplements.

The company subsequently began studying the feasibility of tapping into the e-commerce platform.

The move is intended to fill the gap from conventional channels like retail outlets.

Sales of Brand’s Suntory direct business in Thailand remain relatively low, but the group expects that figure could reach 500 million baht over the next three years, boosted by e-commerce.

Suntory’s overall sales in Thailand totalled 11 billion baht in 2017, up 7% from 2016.

“We’re ready to jump on the e-commerce bandwagon via our new business platform to respond to e-commerce demand and adapt to changing consumer behaviour as it relates to making product purchases,” said Mr Yuichiro.

“After taking another step toward direct channels in Thailand, we hope for sales from our direct business in five locations to reach 2.5 billion baht by 2020.”

He said Brand’s Suntory products in liquid form have long been known to Thai consumers.

This brand recognition will provide opportunities to sell related products in tablet form here, said Mr Yuichiro.

Food supplements sold via the direct channel will be different from those that are available at shops and stores, he said.

Initially, there will only be four product items available via this new sales channel, including “Brand’s ActivMove”, which was yesterday launched on the market.

“Toon Bodyslam”, also known as Atiwara Kongmalai, has been signed to serve as brand ambassador.

International sales of Brand’s Suntory via its direct business channel was 700 million baht last year.

Of the total, 70% came from Taiwan and the rest was from Singapore and Hong Kong.