German brand upbeat about sales prospects

Jul. 19--The local distributor of the German clothing brand s.Oliver is optimistic about reaching its 35-million-baht sales target for the second half of the year despite declining consumer purchasing power.

The sales season will begin today at the seven counters and outlets of s.Oliver, according to Suwanchai Lohawatanakul, the managing director of AFG Asia Fashion Group Co Ltd.

Mr Suwanchai, the youngest son of the family whose textile company has marketed s.Oliver since late 2004, said the company met its first-half sales target of 25 million baht. However, the second half was expected to be more challenging as consumers grew more cautious about their spending.

As well, he said, shoppers had more product variety to choose from.

The company's full-year sales target of 60 million baht is double its turnover of its first year. The target next year is 100 million baht.

The company is reducing prices of the autumn-winter collection of s.Oliver, a mid-market fashion brand, by 10 percent, in particular for top-selling items such as T-shirts. The new collection will be launched in late August.

Mr Suwanchai said that s.Oliver's main rival was the American brand Esprit, which has also cut its prices.

For exclusive members, AFG will offer 20 percent discounts as part of its continuing focus on customer relationship management (CRM).

AFG opened a new s.Oliver outlet in Pattaya last month and plans branches in Phuket and Chiang Mai next year.

The company also began distributing the German brand Comma and the Swedish women's shirt line TSF late last year, at the same time as the inauguration of Siam Paragon.

However, it has since slowed the pace of expansion due to uncertain economic conditions.

AFG products currently are distributed through 12 counters of leading department stores and two shops in Bangkok and Pattaya.