PRANDA GROUP expands OBM business with an aim for sustainable growth in revenue base.

Stocks and Financial Services Press Releases Thursday March 10, 2016 21:39
Bangkok--10 Mar--Pranda Jewelry
PRANDA GROUP expands OBM business with an aim for sustainable growth in revenue base.

As reported by Pranda Group, the Company's overall business operation in recent year has been principally focused on expanding its Own Brand Manufacturing (OBM). By 2015, the proportion of revenue in OBM was increased to 46% of total group's revenue. Accordingly, the Company aims to strengthen its overall business by expanding its OBM through 3 main channels namely Retail, Wholesale and E-Channel to countries evidencing high potentials and continuous market growth. Hence, the Company aims to balance its overall sales proportion with its Original Design Manufacturing (ODM) in order to broaden its customer base and achieve its revenue structure through constant growth and sustainability.

Retail Channel, for the past 3 years (2013-2015), PRANDA GROUP expanded its retail business channel on OBM through its own retail stores and franchises primarily in Asia and the Middle East, especially countries in ASEAN Economics Community (AEC) with more than 200 points of sale e.g. 144 in Thailand, 8 in Vietnam and 53 in Indonesia. Evidently, the revenue growth rate in AEC region was increased pleasantly during the past 3 years namely in Thailand, Vietnam, and Indonesia by 28%, 260%, and 53% respectively with the total growth rate in AEC of 35%. Brands under OBM which have been significantly promoted in Asia and the Middle East including gold jewelry under Prima; Prima Gold - 24K gold jewelry with 99.9% purity, Prima Art – gold sheet artwork with 24K gold and Prima Diamond – superior diamond jewelry as well as 18K gold jewelry with diamond under Julia brand and silver jewelry with 100 cut Cubic Zirconia under Merii brand. Additionally, PRANDA GROUP aims to expand its OBM business in CLMV region (Cambodia, Laos, Myanmar and Vietnam) in which the market expansion in Vietnam and Myanmar has been initially implemented while planning for strategic expansion to Laos and Cambodia once the market potential has increased.

Wholesale Channel, for the past 3 years (2013-2015), the Company has had its OBM products distributed to jewelry wholesalers both large and medium through continuous sales and marketing promotions, with aim to increase brand trustworthiness and attract potential jewelry wholesalers e.g. Ariva - the unique silver jewelry brand with 90 points of sale in the United States, Prima Art - gold sheet artwork with 24K gold with over 6,000 points of sale across India and H. Gringoire - 18K gold jewelry with precious gemstones with over 5,000 points of sale throughout France.

And E-Channel, comprising of E-Commerce and TV Shopping, the Company has expanded its distribution of OBM products into Europe, particularly the United Kingdom and Germany e.g. webstore selling silver jewelry with colored gemstones under Gemondo brand in UK and through TV Shopping named Channel 21 in Germany and the distribution of costume silver jewelry under Cai brand through well-known marketplaces such as Amazon and Ebay.

Regarding the business expansion of Own Brand Manufacturing (OBM) in key regions worldwide through 3 main channels as indicated above, the Company believes that the well-planned and strategic directions in increasing OBM revenue base will lead to the sustainable growth of total group's revenue eventually.

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