Ichitan Group’s entering new markets, eyes on 7,500 million Baht
Breaking through the economic barrier Ichitan Group Public Company Limited (ICHITAN) has disclosed the strategies for 2016 to enhance existing core business, proceed with new markets and strengthen overseas market, aim to reach 7,500 million Bath target.
Mr. Tan Passakornnatee, President & CEO, and Mr. Tanapan Khongnuntha, Executive Vice President?, Beverage Business summarized ICHITAN's 2015 operating results. They noted that revenue was closed approximately 6,400 million Baht. ICHITAN remains the market leader with 43.4% of RTD tea market, which is valued at 15,574 million Baht. They also explained the intense level of competition over the past year. The latest figures for RTD tea market revealed that the volume consumed in 2015 was 470.7 million liters, 0.7% year-on-year increase, while the value amounted to 15,574 million Baht, a 2.5% decrease. This shows that a price war took place among the competition.
Most competition was focused on two major brands while some efforts were also made to create new positions, for example using sugar-free or Oolong tea, as a selling point. However, if any brands did not make significant moves, their market share would obviously decline.
"In 2016, ICHITAN still views total market hopefully, we strongly believe in the government's stimulus strategies to macro-economic. We expect that Thailand's economic will be revived by the second half of the year.
ICHITAN will use this challenge as a drive to make 2016 a year for stepping forward, by not limiting ourselves to RTD tea business. In addition to green tea, more potential products will be launched into the market from the third quarter of the year. Said Mr. Tan Passakornnatee.
As for the existing group of products, including ICHITAN Green Tea, Yen Yen Herbal drink and Bireley's, ICHITAN has launched a sizing strategy to supply seven different sizes, from 290 to 840 ml, priced at between 10 and 27 Baht, to meet consumer from various groups' demands. ICHITAN has also developing all products to provide various tastes and patterns, to create vibe of brand dynamics so that it is vigorous and innovative, with the aim of maintaining a business stability and contributing to the sustainable development of the product quality in the future.
Meanwhile, the overseas business, PT ICHITAN Indonesia Company Limited, launched two products in the last two months of 2015. Therefore, 2016 will be a year for brand buiding, continuing marketing strategies to build a strong base as quick as possible. At lease 2-3 new products will be introduced to the Indonesian market in the near future. Strength of alliances will continue to be used as our advantageous. For example, PT Atri Pasifik Company Limited, the management of more than 10,000 branches of Alfamart convenience stores in Indonesia, in partnership with Mitsubishi Corporation in Japan. It is expected that, as a result, PT ICHITAN Indonesia Company Limited will generate sales for ICHITAN n Group of not lease than 1,000 million Baht.
With the combined strategies for defending ICHITAN's market share, strengthening existing brands, introducing other products categories beyond RTD tea, and creating a serious new market in Indonesia, it is expected that ICHITAN Group Public Company Limited will be able to generate total revenue up to 7,500 million Baht in 2016.