Bangkok--3 Aug--Pranda Jewelry
Pranda Jewelry Plc foresees its sales unchanged in 2009, projecting economies of trading countries to recover in the second half. The Company unveils strategic plans to weather out the economic storm and looks set to accelerate expanding into the new markets notably in China and India, setting a growth target of 30% in each market while raising local sales to 18%.
Mrs.Prapee Sorakraikitikul, president of Pranda Jewelry Plc. discloses that sales revenue of the parent firm which operates manufacturing facilities are expected to remain unchanged from 2006 and 2007 to estimated at 3.2 billion baht. Consolidated sales from local and overseas subsidiaries are also expected to remain unchanged from a year earlier to about 4.5 billion baht. This is the first-ever flat growth Pranda Group has experienced over 36 years in business.
According to Mrs Prapee, the flat growth projection is attributed mainly to a bleak economic prospect of trading countries such as the United States and European Union which represent up to 70% of the Company's shipments. Sluggish sales are also thanks to the world's economic crisis which hard hits the global consumer's purchasing power, prompting consumers around the globe to cautiously spend only in necessary consumer goods.
``Retail sales of the US gems and jewelry products during Christmas Season fell by 25% from the same period last year, while sales in the EU market are expected to drop by 5-10% accordingly,'' said Mrs Prapee. ``Sales outlook for the two key markets is also forecast by all parties to remain depressing in the first quarter this year. We thus need to closely monitor the future economic conditions of our trading countries. Hopefully, the markets will recover in the second half of the year,'' she said.
Mrs Prapee has also disclosed strategic plans to help enable the group to overcome the economic crisis that in 2009 the Company is committed to expanding new markets including China, India and the Middle East. Great potential growth in China and India in particular is anticipated thanks to their relatively strong purchasing power boosted by internal economic stimulus measures. In China where the Company which has already production facility in place, the Company aims to expand the distribution outlets in leading department stores particularly for the Company's own brands.
The Company launched started open ting its own retail outlet in Shenzhen last year and. In India where the Company appointed sales representatives last year to market the Company's products, it plans this year to expand into wholesaling.
According to Mrs. Prapee, sales in the two new markets are expected to grow by 30% each this year.
In the meantime, the Company looks set to expand more aggressively into Russia and the Middle East to increase the group's customer base.
For other markers such as Japan, Indonesia, Vietnam and Australia, the Company is also committed to closely monitoring and fostering customers there, despite sales in those markets remain relatively small. She said the Company also looks poised to develop wholesaling channel to cover giant and retail distributors both through its own distribution outlets and franchising systems once opportunity arises or their economy and trade conditions as well as consumers' purchasing power restore. For domestic market, the Company wants to beef up sales promotion campaign and public relations activities for ``PRIMA GOLD'' brands which currently have distribution outlets covering both Bangkok and main cities in each region nationwide. The Company aims to raise contribution of domestic sales to at least 18% this year from 15% in the previous year.
Moreover, the Company also plans to expand marketing more aggressively for its House Brands. In addition to PRIMA GOLD, the Company has also operated jewelry products under other brands such as Century Gold, Prima Art, Cai, Merii, Kroll Hearts, H. Gringoire which have enjoyed a very good sale over the past several years. The Company has; in addition, teamed up with business partners to develop marketing to expand products under reputed licensed brands such as ``V&A'' and ``Pompoos.''
``The new crisis is considered much more severe than what happened in in 1997. This crisis affects the key markets worldwide, freezing as a consequence purchasing power of the world's consumers particularly in the United States, European Union and Japan,'' said Mrs. Prapee.
``The private sector is therefore desperately calling for the government's supports to organise more roadshows to help explore the new markets, and provide funding assistance to ease the industry's liquidity. Import tariff waivers on raw materials for production, product research and development center, human resource development, and a further support to Bangkok Gems & Jewelry Fair are also a must,'' she said.
Despite the world's economic and financial crisis which takes a heavy toll on the global consumption, the Company still feel upbeat moderately to be able to retain existing marketing bases both in the United States and Europe and open new markets such as India, China and Russia. More importantly, the Company has currently embraced appropriate management structure under which it currently operates eight factories in five countries including Thailand, Vietnam, China , Indonesia and Germany and nine distribution bases of its own in nine countries.
For more information please contact:
Tel: 02-361-3311 ext 131 PR Department, Pranda Jewelry Plc.