The move comes following a growth of the company’s capital base over the last few years, and the new direction will now represent most of the company’s business, according to the Bangkok Post.
It taps into the increasing Thai beauty growth, which is with 70 million potential consumers, the market for beauty and personal care products grew 8% in 2012, offering a more secure investment opportunity for brands looking to expand.
A premium push
Union Intraco notes that its primary focus on the expansion into beauty will be the premium segment, a savvy move in light of the category’s recent strong showing.
With a 24% increase in year-on-year sales in 2013, the luxury category has been enjoying a boom in the country, where the top product categories include perfumes and cosmetics.
Luxury imports in particular are strong in Thailand; new statistics from the country’s finance ministry revealed that their value has increased 4.2%, with perfume and cosmetics now boasting an import value of 5.02 billion baht ($155.7 million).
The luxury imports figures participate in a positive climate for Thailand’s beauty and personal care market more generally.
According to UBM Asia, Thailand's beauty industry is fueled by a strong economy and increasingly sophisticated consumers, branching out into the male grooming market, which is proving to be particularly lucrative.
Reduction in import duties driving cosmetic purchases
A recent reduction in import duties in Thailand is believed by the government to have attracted more foreign visitors, as well as increased domestic spending on cosmetics.
“Thailand still subjects such goods to 30-per-cent duties. If tourists come to Thailand and can purchase all they want here, it would boost spending per tourist," says Areepong Bhoocha-oom, secretary at the Finance Ministry.
The government also aims to improve cross-border trade, and is eyeing a series of initiatives which would give more funding to border activities and provide greater convenience for multi-country transactions.