The chief executives of Thai business conglomerates yesterday revealed their strategies for expanding into Asean to cash in on opportunities for regional trade and business integration, especially after the Asean Economic Community is fully effective next year.
Thapana Sirivadhanabhakdi, president and chief executive of Thai Beverage, said the company had a strong local distribution network, with its products spread throughout the Kingdom. It is quite ready to introduce its products into neighbouring markets.
"In my view, the total population in Asean is not only 600 million, but 700 million plus when combined with inbound tourists from other regions. The Asean market itself is quite ready to comply with higher domestic demand for any consumer products," he said.
He was speaking at a seminar titled "Follow Your Dreams ... Thai Entrepreneurs Go Global" held yesterday by the Master of Management in Entrepreneurship programme at Bangkok University in cooperation with Babson College, a private business school in the US state of Massachusetts.
Thapana said there were many tremendous opportunities in Asean along with the integration within and beyond the region, such as Asean+3 and Asean+6. The Asean governments have been negotiating on trade agreements aimed to connect the member countries together into a single market.
"For ThaiBev, we have treated Fraser & Neave, a Malaysia-based company that has been acquired by our firm, as our strategic partner. We can exchange business ideas, conducting cross-learning and forming a synergy with them. We also can use Malaysia as a hub and springboard for halal foods for export into other countries, such as Indonesia and [those of] South Asia," he said.
"We are a business entity that is ready to play a significant role in the Asean market," he said.
Tos Chirathivat, chairman of the executive committee and CEO of Central Group, said it was a golden era for Thai entrepreneurs and products as their markets expanded beyond Thailand's borders.
"However, they need the ability to create their own products themselves. Many top global companies are now looking to buy local brands in Asia. Hermes, for instance, has acquired a local fashion brand in China. LVMH is another example of a leading global business group that has set up a fund in Singapore to acquire brands in Asia. Its strategy is to expand its fashion business in Asia and export such products back to Europe," he said.
Tos said Thai entrepreneurs needed to focus on developing quality and unique products so that they could be distributed in any market around the world.
"Thailand has a good opportunity to be a centre for manufacture of a variety of products supplying Asean and other markets around the world, such as the Middle East and Africa. Many rival countries such as Singapore, Malaysia and Vietnam currently have small manufacturing bases.
"However, local entrepreneurs need to have a good plan and make feasibility studies before penetrating individual markets in Asean," he said.
Central Marketing Group, a subsidiary of Central Group, recently acquired a 100-per cent stake in a trading company in Malaysia that owns four well-known Malaysian fashion brands. The acquisition was in line with Central Group's "Asean Strategy" to expand the group's businesses and create local networks in different countries in Asean. The group already operates businesses in many markets in Asean and beyond, including Vietnam, Malaysia and China.
Rit Thirakomen, president and CEO of MK Restaurant Co, said it currently operated about 400 MK suki restaurants in the Kingdom and another 30 restaurants in overseas markets. It also operates 120 Yayoi Japanese restaurants in Thailand, and another six or seven overseas.
"In my point of view, local entrepreneurs should expand overseas on a small-business basis so that they can prevent any risk or unexpected events that may occur," he said.
Rit said he treated any problem as an opportunity, which allowed the company to move forward. However, local entrepreneurs need to have passion in what they are doing and a strong belief that other people will have the same passion for the products and services they deliver.
Wuttichai Harnpanich, founder and managing director of Harnn Products Co, said the firm was set up in 1999 to manufacture natural soaps exclusively for export. Three years later, the company started to build its own brand name, as well as expanding its portfolio into spa and body-care products. The company currently operates 50 shops in 13 markets around the world, mainly in Asia.
"One of our challenges is finding qualified people to work within the company," he said.
Jirayuth Chusanachoti, managing director of Shellhut Entertainment Co, which creates the "Shelldon" animated TV series broadcast in 180 markets around the world, said the company would produce a "Shelldon" animated film to be screened around the world in cooperation with a well-known production firm in Hollywood. The production will cost about Bt2 billion.
"Our business success has been driven by our three principles, which are heart, head, and hand. With these, we need to have strong passion to become successful. We also need to have good planning and research activities, as well as strong teamwork so that we can trust and respect [one another]," Jirayuth said.
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