Bangkok's Satin Textiles Launching Retail Outlets in China
April 29, 2003
Singapore - Satin Textiles, the largest mill in Thailand with sales of more than $20 million, expects to generate retail sales of at least $20 million through four new Satin branded outlets in China. The company is expanding its retail division in order to secure its future as a mill, said Schle Wood, principal.
The first location of 220 square meters was opened in December 2002 in Shanghai on Nanching West Road, in the main shopping district in Shanghai. Satin plans to open three more outlets in Beijing, Quangchou and Ting Dao.
The company is stocking its lines in Bangkok for two-week delivery to China. Custom orders would be delivered within eight weeks, Wood said.
Wood acknowledges that the glut of low-priced Chinese products on the market pressures mills to change the way they do business. ''Mills are forced now to go direct to the interior designer in order to guarantee sale of their new collections,'' he said. ''The mill must carry its own stock rather than rely on the wholesaler today because smaller quantities are being ordered by the wholesaler than ever before. Mills and wholesalers are competing for the same orders for as little as 500 meters per color in a tougher economic environment.
''In some cases, I found that mills exhibiting at Heimtextil would be happy to sell 150-meter minimums on new collections. Except for proven winners, 500-meter orders are no longer the rule today,'' he said.
''I wouldn't be surprised if some high end wholesalers at Biennale in Paris were selling cut length for their new collections,'' he said, indicating his perception of the severity of the situation. ''They normally sell one piece at a time,'' he said.
The retail outlets will also enable Satin to circumvent Chinese wholesalers, who, Wood says, pose dangers. ''They have been known to not pay their bills and then go bankrupt so you cannot collect your money from them. They subsequently reopen again under a different name. All they want to do is make money.''
In Thailand, Satin also owns 20 outlets located in department stores under the Genua Home Fashions brand. Ratiya Chantian (Wood's wife) export manager for Satin, manages the Genua brand and retail businesses. The manager of the China-based retail operation will also report to her. The retail business will only be conducted in Thailand and China. In other markets, Satin will continue to work through the wholesaler exclusively.
Last year Satin launched the Casamatta collection, an upper end range, which gained entry to Spain, Italy and France through an exclusive agent. Wood plans to build Satin's retail merchandise offerings around that line.
''In addition to our upper end brand, we will also offer the Chinese designer, architect and consumer upper end lines of European fabrics, about half a dozen lines. The fabrics offered will be priced to the retail trade at $12-$40 a meter.''
Wood said that Satin is also working to build its drapery fabric business internationally.
The first location of 220 square meters was opened in December 2002 in Shanghai on Nanching West Road, in the main shopping district in Shanghai. Satin plans to open three more outlets in Beijing, Quangchou and Ting Dao.
The company is stocking its lines in Bangkok for two-week delivery to China. Custom orders would be delivered within eight weeks, Wood said.
Wood acknowledges that the glut of low-priced Chinese products on the market pressures mills to change the way they do business. ''Mills are forced now to go direct to the interior designer in order to guarantee sale of their new collections,'' he said. ''The mill must carry its own stock rather than rely on the wholesaler today because smaller quantities are being ordered by the wholesaler than ever before. Mills and wholesalers are competing for the same orders for as little as 500 meters per color in a tougher economic environment.
''In some cases, I found that mills exhibiting at Heimtextil would be happy to sell 150-meter minimums on new collections. Except for proven winners, 500-meter orders are no longer the rule today,'' he said.
''I wouldn't be surprised if some high end wholesalers at Biennale in Paris were selling cut length for their new collections,'' he said, indicating his perception of the severity of the situation. ''They normally sell one piece at a time,'' he said.
The retail outlets will also enable Satin to circumvent Chinese wholesalers, who, Wood says, pose dangers. ''They have been known to not pay their bills and then go bankrupt so you cannot collect your money from them. They subsequently reopen again under a different name. All they want to do is make money.''
In Thailand, Satin also owns 20 outlets located in department stores under the Genua Home Fashions brand. Ratiya Chantian (Wood's wife) export manager for Satin, manages the Genua brand and retail businesses. The manager of the China-based retail operation will also report to her. The retail business will only be conducted in Thailand and China. In other markets, Satin will continue to work through the wholesaler exclusively.
Last year Satin launched the Casamatta collection, an upper end range, which gained entry to Spain, Italy and France through an exclusive agent. Wood plans to build Satin's retail merchandise offerings around that line.
''In addition to our upper end brand, we will also offer the Chinese designer, architect and consumer upper end lines of European fabrics, about half a dozen lines. The fabrics offered will be priced to the retail trade at $12-$40 a meter.''
Wood said that Satin is also working to build its drapery fabric business internationally.
