(Source: Inside Retail Asia | 4 October 2016)
Popular Korean beauty brand The Face Shop is about to open its first store in Laos by the end of this year.
The brand will enter Laos under a joint venture of Thai franchisee, and follows the successful establishment of the brand in Vietnam, Cambodia and Myanmar.
Pithan Ongkosit, president of TFS (Thailand) said the company has negotiated with LG Household & Health Care Co – The Face Shop’s owner – on a plan to expand in the Asean market together.
Pithan planned to invest Bt100 million (US$3 million) in opening seven new stores this year and another Bt50 million next year. They plan to open up to 100 stores by the end of 2017.
Since becoming the number one Korean cosmetics brand in Thailand, TFS has grown sales by up to 150 per cent during the first half of this year.
The brand expects to achieve Bt500 million in total sales this year, and Bt1 billion in total within the next two years.
Despite the effects of Thailand’s sluggish economy on the cosmetics market, personality and beauty is still important to Thai consumers.
TFS now has branches in Bangkok and other provinces with selling prices similar to those in Korea.