Bangkok--Jul 26--Mind Touch
Better Vision Group invested 200 million baht in its overseas expansion
Succeeded in taking over OPSM’s operation in Singapore and Malaysia Set to build “Better Vision” as international optical retail chain
Better Vision Group Company Limited, Thailand’s leading optical retail chain announces its 200 million baht investment plan in taking over 22 optical retail outlets in Singapore and Malaysia under the operation of OPSM Group upgrading “Better Vision” operation to international chain level.
Pakee Pracharktam, Managing Director of Better Vision Group Company Limited said that such investment is regarded as an important step leading the company from a mere well-established local company to become a leading regional player with a final goal to become an international optical retail chain using “Better Vision” as its flagship brand.
“The investment in Singapore and Malaysia was considered as its second overseas investment. The first overseas investment was in 2002 when the company spent over 10 million baht to open its first overseas branch in Shanghai, which continues to gain its popularity. We will invest about 200 million baht in this second overseas expansion, which part of the amount will be from our working capital and the rest will be the loan from the local financial institutes”, said Pakee.
OPSM Group Limited is one of the world’s largest optical retailers with over 500 outlets in Australia, 40 outlets in New Zealand and 80 in Hong Kong.
With the change in the investment policy of OPSM Group to direct its investment towards China, it decided to end its role and operation in Singapore and Malaysia. However, OPSM Group Limited has put its effort in seeking for a qualified buyer who intends to take over the operations in both countries. Better Vision Group had been approached directly by OPSM management.
“I would say that this is a perfect match at a right timing as OPSM had to consider all the consequences especially the welfare of over 150 employees in both countries while we had a plan to penetrate the regional markets. At the same time, in our plan, we want to build a strong network since the start by opening the chain of outlets at one go instead of opening the shop one by one. When OPSM contacted us, we started the negotiation and finally both parties reached a mutual agreement”, added Pakee.
Pakee also said that Better Vision Group would commence its management of the operations with 13 outlets in Malaysia and 9 in Singapore from September 1, 2005. All shops will be refurbished and the shop name will be changed to “Better Vision” with aims to build “Better Vision” as regional brand initially and to become the global brand in the long run. It anticipated that this new investment deal would boost the sales growth by 25% from the normal growth rate of 20%.
Pakee commented that the competition in Singapore and Malaysia is similar to Thailand during the past 5-10 years with the emphasis on heavy promotion and price war. Nevertheless, Better Vision would introduce the modern marketing strategy focusing on differentiation and quality and service oriented approach, which has been successfully deployed in Thailand, to its operation in Singapore and Malaysia. On the other hand, Better Vision Group will also learn from OPSM’s experience and know-how and apply to its operation here in Thailand.
Pakee added regarding the market situation in Thailand that the optical market was impacted by the recent Tsunami incident. Moreover, the rise in oil price would be another factor that would affect the overall optical market. The company’s well aware of such factors and did not set a high sales target. Therefore, the sales continue to increase according to the set target at 20% compared to last year. Better Vision Group currently has about 18% market share from the total market value of over 4500 million baht with an average growth rate of 8%.
“We have to accept that the market is slowing down because of the current economic situation. The consumer would make their buying decision cautiously. Normally, the customers might change the optical frames together with the lens. When the customers are worried about the economy, they might change only the lens. Anyhow, the overall market is still growing”, said Pakee.
For more information, please contact
Savitree Peungcharoenkun (01 8164598)
or Virat Threeranurat (01 682 2575)
Mind Touch Co., Ltd.
Tel. 02 6892334-5 Fax 02 6892338
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