According to Tanapong, the proceeds from the IPO will be used to fund the company’s business expansion both in Thailand and abroad.
Tanachira Retail Corporation, the importer and distributor of lifestyle fashion brands such as Harnn, Marimekko and Pandora, is expected to file its initial public offering (IPO) application with the Securities and Exchange Commission next month.
CEO Tanapong Chirapanidchakul said the proceeds from the IPO will be used primarily to fund the company’s domestic and overseas business expansion, repay debt and finance mergers and acquisitions over the next few years.
“We aim to become a regional lifestyle retailer, add new brands and expand overseas business in the next five years,” said Mr. Tanapong.
The expansion is part of the company’s strategy to reach 3 billion baht in revenue during the period, of which international sales are expected to contribute 20%, up from 4% now, he said.
Tanachira intends to shift its focus to marketing the lifestyle food and beverage segment from 2023-25.
The company has been awarded a 10-year deal to open the UK’s first famous casual and premium dining restaurant this year in Thailand.
Under the deal, Tanachira will be allowed to open 10 restaurants with a total investment of 80 million baht.
Mr Tanapong said lifestyle foods and drinks are more accessible to consumers than lifestyle fashion. With the new orientation, the share of sales from lifestyle fashion and food & beverage should account for 50% of total sales in the next five years.
“Our business with Cath Kidston is also changing as we leverage strong brand awareness,” said Mr. Tanapong.
Cath Kidston’s first 55 square meter tearoom kiosks on the first floor of CentralWorld are due to open soon, with three more kiosks planned for this year.
The company also plans to open a 120 square meter full-fledged Marimekko restaurant at The Emporium with a communal dining concept, which is expected to start in two months.
In addition, Tanachira expects to launch a new Scandinavian lifestyle fashion brand this year or add another Japanese fashion brand to its portfolio, he said.
Expansion plans require an investment of 100 million baht in 2023, 50% more than last year’s investment, Mr Tanapong said.
Tanachira forecasts revenue of 1.59 billion baht with net profit of 150 million baht this year, up from 1.26 billion and net profit of 122 million in 2022.
51% of total sales last year came from Pandora jewelry, 17% from Marimekko and the rest from the Cath Kidston and Harnn brands.
Tanachira was established in 2011 to distribute four lifestyle fashion brands: Cath Kidston, offering British fashion accessories; pandora jewelry; Harnn Spa and Wellness; and Marimekko fashion.
The company operates 150 branches in Thailand.
Tanachira has already expanded Harnn into Japan and Cath Kidston into Vietnam.
The company is in the process of registering new branches in Singapore to open its first Marimekko store next month.
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