Mc Jeans maker aims to double size in four years

PK Garment (Import-Export) enjoyed more than 30-per-cent growth last year to Bt2.3 billion, which was significant given the impact of the severe flooding in the latter months of the year.

It targets sales of Bt3 billion this year.

Founder and managing director Sunee Seripanu yesterday said the business planned to become a public company in the second quarter of next year.

Listing in the Stock Exchange of Thailand is aimed at raising funds for expansion both domestically and overseas, promoting the company as an international player and attracting high-quality human resources to work for the firm.

"After strong growth of 20-30 per cent per year in the domestic market, the firm is confident that it [Mc Jeans] can become the leading brand locally, and extend its business to Asean, starting with Burma this year," Sunee said.

She said the company was negotiating with sales agents in Burma, which she described as a "very fresh market" now that the country is opening up, with plenty of room to grow while at the same time having few competitors.

Another potential markets for Mc Jeans is Indonesia, which has a large population and strong business growth.

The firm plans to explore trading opportunities in Asean markets primarily, and will consider investment in the future, she added.

Sunee said PK Garment remained confident about using Thailand as its production base, as the location enabled it to control high-quality output.

To gear up sales in the local market, the company is investing Bt200 million to establish more stand-alone Mc Jeans shops, targeting 200 outlets in the next three years from the current 78 stores around the country.

It also plans to set up a subsidiary trading and interior-decoration business responsible for the decor of the new shops.

Besides focusing on jeans products, the company intends increasing the Mc Jeans product range to meet changing demand, she said, adding that fashion goods, accessories and bags were among the new potential products being considered.

The distribution of a wider range of items is necessary to increase brand recognition, as other international brands successfully sell accessories, which generally account for about 30-50 per cent of their sales, Sunee said.

However, the rising cost of labour in Thailand is challenging the business. Sunee said PK Garment would

need to increase Mc Jeans retail prices by 7-8 per cent by the third quarter after labour costs rise, which account for 12-13 per cent of overall production costs.

As a strategy to lessen the im-pact of higher labour costs, the |firm is trying in the first half of |the year to accelerate produc-|tion and ensure that stocks are available well in advance.

It has also developed the supply chain and relies more on technology development and innovation, she added.

Meanwhile, to increase its financial strength, the business has recently acquired a new director, Pratana Mongkolkul, with ex-|tensive experience in finance to work for the firm as well as act as an adviser.

Pratana said her priority task was to develop the company and drive it towards becoming a listed business next year.

"The firm has drawn up a five-year plan for strengthening growth. Under strategies to promote growth, it will take over other firms and brands for expanding the customer base to the upper market, from the current mass to medium market," she said.

She added that the Mc Jeans brand was already strong domestically, but the company felt it had great potential to become an international player and continue its success story.