Loxley goes for own brands
Loxley Plc is set to double its trading sales to 8.6 billion baht over the next five years through a partnership strategy to provide only its own products in a bid to cut business risk and build long-term sustainable growth.
Providing its own products and services means Loxley will set up production and distribution centres, and build brands itself.
Suraphand Bhasitnirandr, the company's senior executive vice-president, said consumer products, automobiles and their service, and construction materials will be the priority growth engines.
Key strategies to achieve its goal include utilising Loxley's core distribution network through synergy with all business units in the group, distributing products to retail outlets and having its own production facilities.
It will increase the variety of products under its portfolio, both from its own brands and others. Construction materials are predicted to grow with expected mass transit and transport projects.
For consumer products, the company will spend 100 million baht over the next five years to build its own production and products, excluding its own distribution outlets.
Loxley is negotiating to form a partnership with consumer product makers that use the company's distribution service, preparing 20-30 million baht for the deal.
It also plans to introduce its Kleena brand for household products to the market in the first half next year, as well as adding new beverages under its umbrella brand Good Time.
Distributing its own products instead of others' to retail channels should improve profits, which fell for this business to 13% from an average of 16-17% earlier due to expenditures from modern retail chains such as entrance fees.
Loxley recently acquired the rights to operate Suksaphand shops at schools across the country, with plans to increase the shops to 300 over three years. It also plans a joint venture garage service with KP Group, a giant automotive operator from Japan that operates CarConveni garages.