PP Group, the official distributor of Longchamp luxury lifestyle fashion goods in Thailand, has resumed its business expansion in the second half after pandemic infections eased and tourists started to return to Thailand.
According to company president Suvadee Phungbunphra, PP Group plans to open two new concept boutiques in Bangkok in the third and fourth quarters this year.
The new Longchamp concept was introduced in France over the past few months and is set to be gradually rolled out in other countries.
Apart from opening new concept boutiques, PP Group also plans to refresh existing Longchamp shops with a new look.
Longchamp recently announced its plan to develop Le Pliage, its iconic lightweight foldable bag, in an environmentally friendly manner.
By 2023, Longchamp vows every collection of Le Pliage will use more green or recycled materials.
"Longchamp is a luxury brand, so our customers have solid purchasing power. Their spending has not been seriously affected during the pandemic," said Mrs Suvadee.
"Our sales in 2020 grew by 15% from 2019. With restrictions in 2021, our sales dipped back to the level in 2019, but they have recovered and recorded a new high in the first half of this year."
With Covid-19 infections slowly improving and tourism recovering, the company expects its sales to double this year from 2021, she said. Exact figures were not disclosed.
There are six Longchamp shops in Bangkok, including at Siam Paragon, Central Chidlom and Iconsiam.
PP Group has been the exclusive distributor of Longchamp in Thailand since 2014.
Mrs Suvadee said the company received a positive response from customers, not only long-time fans but also new customers, for its marketing activities as well as omni-channel offerings.
"I am very happy with the performance of Longchamp in Thailand. Thailand is one of our strategic countries and has potential because of a resilient wealth class and the fact that Thais enjoy shopping. Despite the pandemic, the company recorded a strong sales performance in the country," Jean Cassegrain, chief executive of Longchamp, said during a visit to Thailand last week.
"With a population of 70 million, we see potential growth in the Thai market. Thailand is among the top spenders in the Asia-Pacific region."
He admitted Longchamp felt some impact from the pandemic, but said the answer is to expand its business to give visibility to the brand.
"We need to be agile and flexible to keep our sales growing," Mr Cassegrain said.
Longchamp is available in 80 countries through a network of 1,500 points of sale, brand-owned boutiques and franchisees, department stores, multi-brand leather goods dealers, airport stores and e-commerce websites.
Longchamp directly manages 300 points of sale worldwide through more than 25 distribution affiliates, including PP Group in Thailand.
France contributes 30% of Longchamp's total sales, with Europe, the Middle East and Africa making for a combined 29%, Asia 28%, and the Americas the remaining 13%.
"Apart from France, China and Southeast Asia are strong markets where we will continue to invest," he said.
"We plan to open five new shops in China per year and our first shop in Vietnam this year."
