Pranda Jewelry Plc, an MAI-listed jewellery exporter, aims to generate more revenue from its own brands in emerging markets in a bid to reduce export risks in Western countries.
Chairman Prida Tiasuwan said the company plans to raise the revenue contribution from its own brands from 30% to 50% in the next three years.
Most of Pranda's revenue now comes from exports of diamond and precious stones to global jewellery producers in Western markets.
Pranda owns 12 brands including Prima Gold, Prima Diamond, Cai and Merii.
It will increase its points of sale from 150 to 250 locations in Southeast Asia. The new outlets will be opened with its own investment or on a franchise basis.
"We will increasingly focus on emerging markets including Indonesia, Vietnam and India because of the higher jewellery consumption in these countries," Mr Prida said.
Pranda has set a 500-million-baht budget to increase production capacity across three operational countries in the next three years. It targets 5 million handicraft jewellery pieces a year in Thailand, 4 million medium-tier pieces a year in Vietnam and 2 million mass-product pieces a year in Indonesia.
Mr Prida said the company's first-half revenue decreased due to the economic slowdown in the US and Europe and a decline in purchasing power.
Pranda generated 1.75 billion baht in revenue with a net loss of 2.17 million baht. Last year, its revenue stood at 4.23 billion baht.
It has revised down its 2013 revenue growth target to stay flat at 4 billion baht from 5% forecast earlier.
This year, the Thai jewellery industry is expected to decline by 20% to be worth 340 billion baht from 420 billion baht last year. The market has been affected by currency exchange fluctuations and the minimum wage rise to 300 baht a day.
"We hope the situation will be better soon as jewellery sales are seasonal and the US economy is showing some signs of recovery," Mr Prida said.
About the author
- Writer: Saengwit Kewaleewongsatorn
Position: Business Reporter