Thursday, February 22, 2024
HomethailandgeneralPP Group restructures business model as sector evolves

PP Group restructures business model as sector evolves

PP Group, the distributor of luxury fashion brands such as Givenchy, Tory Burch and Longchamp, has strategically restructured its business model to align with the industry's evolving landscape.

According to Orand Puipunthavong, the company’s vice-president, PP Group has been offering marketing and brand-building consultancy services since May of this year, leveraging its extensive network within the media and celebrity circles.

Many international fashion brands looking to build their brands in the Thai market have selected PP Group to be their consultant. This service will be a key focus area for the group over the next three years.

The company introduced retail operation services last year, catering to brands seeking to establish and maintain their presence in Thailand. PP Group can provide these brands with relevant expertise and a thorough understanding of the local market.

Two luxury brands are using the company’s marketing and branding consultancy services at present, with several more brands involved in discussions.

Suvadee Phungbunphra, the group’s founder and chief exective, said in addition to retail operation services and marketing and branding consultancy, PP Group is also strengthening its core retail business.

PP Group allocated 200 million baht this year to double the number of its shops and pop-up stores to 40 in total, expanding its retail space from 2,254 square metres in 2022 to 4,342 sq m this year.

The company also plans to add 3-4 new luxury brands to its portfolio over the next 3-4 years to meet the consistently growing demand in the country’s fashion retail market, particularly in the luxury segment.

Kris Khunhirun, the company’s senior brand manager, said the company is scheduled to open the first shop of AMI, a French designer brand founded and designed by Alexandre Mattiussi, on the M floor of The Emporium early next year.

Thailand was selected as the first location for AMI in Southeast Asia due to the significant growth potential of designer fashion brands, both within the PP Group and externally.

“Thailand’s retail environment is complex, and the country enjoys a robust tourist base. The country is recognised as the fashion capital of Southeast Asia,” said Mr Kris.

Mr Orand said AMI is an up-and-coming brand with the potential for significant growth within the group.

In addition to distributing luxury fashion brands, the company intends to expand its business through joint ventures with international companies to mitigate risk and ensure long-term sustainability.

The introduction of AMI is aimed at enhancing the diversity of the fashion retail landscape in the country. Given the market’s potential and the strong purchasing power of Thai consumers, PP Group believes Thailand is well-prepared to foster the growth of designer brands, often driven by owner-designers.

With these strategic initiatives in place, the group is poised to achieve a sales target of 4 billion baht by 2026, up from an estimated 2 billion this year, said Mr Orand.

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