Levi’s Thailand marks expansion in Indochina with first Levi’s Shop in Cambodia and goal to become top of mind brand within 3 years

DKSH targets Indochina

• Published: 14/10/2010 at 12:00 AM
• Newspaper section: Business

• DKSH Thailand, the country's authorised licensee and distributor of Levi's jeans, has expanded its exports to Cambodia, targeting at least 100 million baht in sales there in the next three years.

  Ponsinh Boutkaska, the executive marketing manager for fashion apparel, said the company saw growth potential in Cambodia's emerging economy and the high fashion consciousness of its people.

  ''We're confident we can create a high level of brand awareness and recognition among Cambodian consumers,'' he said.

  Levi's is the first major international jeans brand to make a major push in Cambodia, where most of the jeans now sold are counterfeit or independently imported for the grey market, while others are simply diverted illegally from local manufacturing plants.

  The company estimates the value of the Cambodian jeanswear market at 200 million baht and believes there is much room to grow considering Thailand's market is worth 10 billion baht.

  ''We're trying to expand the branded jeanswear market in Cambodia and hope our expansion will encourage other brands to enter as well,'' said Mr Ponsinh.

  The company will target consumers with high purchasing power and who prefer premium jeans and other apparel priced from 1,500 to 3,000 baht.

  The first Levi's branch in Cambodia was a shop-in-shop outlet in Phnom Penh's Lucky Olympic Department Store. DKSH will add four stores next year, in Phnom Penh and probably Siem Reap.

  The company also plans to introduce Levi's stores in the other Indochinese countries of Laos and Vietnam due to high brand recognition there.

  Mr Ponsinh said the company would probably open a new shop in Laos next year, while setting up in Vietnam is more difficult, as an existing distributor dominates the market.

  In Thailand, DKSH has enjoyed sales growth of more than 20% this year thanks to the domestic economic recovery and the company's trendy new products. The overall jeanswear market will expand 15% this year.

  Levi's products now command a share of more than 50% of the local jeanswear market. DKSH expects both domestic and Cambodian sales will grow at double-digit rates annually.

  DKSH now operates more than 140 Levi's outlets around Thailand. This year, it will consolidate some small shops and focus more on stores with higher sales.