Tanachira buys Thailand HARNN beauty brand for B1bn
Source：Bangkok Post
From：Taiwan Trade Center,Bangkok
Update Time：2018/11/20
Tanachira Retail Corporation, the distributor of international fashion and lifestyle brands, yesterday announced the acquisition of HARNN, a popular Thai health and beauty brand, as part of its strategic plan to become a regional lifestyle company.
Tanapong Chirapanidchakul, chief executive of Tanachira, said the company took over HARNN, the owner of Thailand's pioneering brand of natural spa and aromatherapy products, in a 1-billion-baht deal on Oct 17.
"We will use our strength and expertise to expand HARNN's business throughout Asia, with priority markets China, Taiwan and Japan," Mr Tanapong said.
HARNN products are available at more than 30 branches across Thailand and distributed via dealer networks in 16 countries, mostly in Asia.
Aphichai Pholkosol, Tanachira's chief financial officer, said the acquisition covers brand and intellectual property assets as well as all of HARNN's business networks and brands, including HARNN, Vuudh, Tichaa by HARNN, Harnn Heritage Spa and Asian Holistic Academy. The acquisition helps Tanachira reduce risk from dependence on revenue from imported brands, he said.
Mr Tanapong said for the first 9-12 months, the company will build brand awareness for HARNN among Thai consumers as a Thai brand for home spa and aromatherapy products using digital marketing, while expanding its international reach.
The second phase, covering 12-24 months, includes international partnerships with both current and new dealers in countries where HARNN does not have a presence, particularly in Asia.
"We will dust off contracts with HARNN's existing dealers and sign new ones in new markets such as Beijing and Shanghai, working to expand via online channels there," he said.
The company also wants to re-market HARNN products in Japan after temporarily stopping sales there.
HARNN has sales of about 300 million baht. Of the total, some 20% is exports, making up 60 million baht. Tanachira expects to double exports of HARNN to 120 million baht within two years.
"By 2020, we target HARNN contributing about 25% of our total revenue at 2.25 billion baht, helping us to list on the stock exchange in the second half of that year," Mr Aphichai said.
Tanachira's total sales are expected to reach 1.56 billion baht this year.
Source by Bangkok Post: https://www.bangkokpost.com/