SET-listed FN Factory Outlet, the operator of FN outlets, has transformed from a retail factory outlet to a retail developer, planning to build more consumer product brands as a new source of income.
According to Benyiam Songwatana, the company's executive director and chief technology officer, the company's business concept has been adjusted since last year after in-house research found there are two main customer groups shopping at FN Factory Outlet: locals and travellers.
Based on the research, the company decided to scale down the size of its factory outlets by 50% and turn the remaining space into various anchors to serve local customers and draw more traffic.
In response to urban sprawl, the company also upgraded the FN Factory Outlet Pattaya branch in the middle of last year, developing a prototype store before trying the adjustments at the Rayong branch and the remaining nine stores across the country.
With the new strategy, some 25-50% of space at each branch is allocated to tenants with an assortment of products that are customised by stores.
The Pattaya branch was scaled down to 4,000 square metres from 6,000 sq m. The remaining space is used by local restaurants, a Social Security office and a True Corporation office.
According to Mr Benyiam, FN Factory aims to lure more local shoppers to its outlets, shifting from a previous reliance on travellers.
He said the renovation of the Pattaya branch is 95% complete.
At the Rayong branch, the outlet already has new anchors such as a KFC drive-thru and Sangthong, a well-known supermarket chain spanning 300 sq m, said Mr Benyiam.
"We want FN Factory Outlets to follow a similar model as mixed-use projects," said Kittima Wacharopas, the company's chief marketing and operations officer.
"Outlets following this model include branches in Ayutthaya and Hua Hin."
In addition to store transformation, Ms Kittima said the company will redesign its fast-moving apparel and accessories products at its outlets to reach Gen Y customers.
FN Factory also plans to open outlets at some retail projects to extend its reach to customers, she said.
Some 35% of sales at FN Factory Outlet come from the bedding business, with apparel making up 25-30% and the remainder from categories such as mom and baby products.
According to Ms Kittima, the company plans to explore more business opportunities next year, including fast-moving consumer goods such as skincare and soap.
She said if the tourism industry improves in 2023, FN Factory expects its sales to exceed 1 billion baht, on par with the level set before the pandemic.
The company expects sales of more than 500 million baht this year, driven in part by its FN Fair 2022, which continues through the end of this weekend.
