Loxley Trading Co, the consumer goods distribution arm under Loxley Group, has re-entered the cosmetics and beauty product segment in a bid to help boost its sales to reach 5 billion baht over the next five years.
Kosoom Sinphurmsukskul, the company's first executive vice-president, said it has teamed up with Assoc Prof Panvipa Krisdaphong, a food supplements expert, to set up a joint venture called Loxley Trading Specialty Innovation, which will develop co-branded beauty products.
The new company has registered capital of 10 million baht, with Loxley Trading and Assoc Prof Panvipa holding equal stakes.
Loxley Trading Specialty Innovation has just started selling its beauty and wellness products via online channels and will officially introduce its new beauty products to the market in February.
It expects 500 million baht from beauty and wellness product sales in 2017.
"Price competition in the food market is very fierce. Food is a red ocean, so we will go into the blue-ocean market with the launch of our co-branded beauty products, as well as bringing innovative products into the market," said Mrs Kosoom.
She said Loxley Trading is interested in the beauty product business because the market is worth up to 200 billion baht.
Loxley Trading will also source new fresh foods from overseas to sell via online channels next year, serving hotels, restaurants and catering (Horeca) business. The company distributes five product categories: groceries, beverages and snacks, food for Horeca business, and beauty products.
Sales of Loxley Trading in 2016 reached 2.8 billion baht, a 15% increase from 2015. About 95% of its sales came from existing product distribution and the remaining 5% came from new businesses, including fresh food for its Horeca (hotel, restaurant and cafe) business.
The company expects sales from its new business to reach 30% of total sales in the near future.
Mrs Kosoom said its 2016 sales grew higher than an earlier 8% growth target despite the economic slowdown. The strong growth in sales was driven by increasing demand for its Cook cooking oil brand.
The company has expanded to offer food services, selling premium fresh food from Japan via the Horeca channel. This generated 200 million baht in 2016.
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