The mattress maker Slumberland (Thailand) Ltd may build a new factory in Vietnam as part of plans to drive annual sales to 800 million baht in three years.
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| Managing director Napaporn Swegwan (left) sees massive potential in Vietnam as the country has double-digit growth and foreigners are investing more there as well. |
Managing director Napaporn Swegwan said the company started exporting its mattresses to the Vietnamese market earlier this year, supplying 500 units for a Sofitel hotel in Hanoi. It will send the same number to another Sofitel in Ho Chi Minh City next year.
The company is also negotiating with another 20-30 Vietnamese hotels now under construction or being furnished.
"Vietnam has huge potential. Many foreigners are now investing in the country, which enjoys double-digit GDP growth. The number of middle-income earners continues to rise, and the Vietnamese are more Westernised. Few mattress brands are qualified to supply hotels," said Mrs Napaporn.
The company will market its products to hotels there for two or three years. If the response remains good, the company will expand even further, possibly including a joint venture mattress factory with local partners in 2013 or 2014.
Another option would be for Slumberland to build a factory on its own and appoint local distributors to reach more property and hotel projects. A plant would cost about 200 million baht.
After Vietnam, the company will consider expansion into Laos and Burma.
About 90% of its sales now come from the domestic market and the rest from exports.
The parent company has more than 30 mattress factories in Europe and five in Asia: two in China and one each in Indonesia, Thailand and Malaysia.
Slumberland (Thailand) produces 220 to 250 mattresses a day, and the current production capacity is enough to serve demand for the next four or five years.
The local unit's sales are expected to show double-digit growth for the first nine months of this year and reach 600 million baht for the full year.
It will spend 3-5 million baht to install new machinery to develop new products. New models will show at the 12th HomePro Expo running from Oct 15-25 at Impact Muang Thong Thani.
The company is also negotiating with another 20-30 Vietnamese hotels now under construction or being furnished.
"Vietnam has huge potential. Many foreigners are now investing in the country, which enjoys double-digit GDP growth. The number of middle-income earners continues to rise, and the Vietnamese are more Westernised. Few mattress brands are qualified to supply hotels," said Mrs Napaporn.
The company will market its products to hotels there for two or three years. If the response remains good, the company will expand even further, possibly including a joint venture mattress factory with local partners in 2013 or 2014.
Another option would be for Slumberland to build a factory on its own and appoint local distributors to reach more property and hotel projects. A plant would cost about 200 million baht.
After Vietnam, the company will consider expansion into Laos and Burma.
About 90% of its sales now come from the domestic market and the rest from exports.
The parent company has more than 30 mattress factories in Europe and five in Asia: two in China and one each in Indonesia, Thailand and Malaysia.
Slumberland (Thailand) produces 220 to 250 mattresses a day, and the current production capacity is enough to serve demand for the next four or five years.
The local unit's sales are expected to show double-digit growth for the first nine months of this year and reach 600 million baht for the full year.
It will spend 3-5 million baht to install new machinery to develop new products. New models will show at the 12th HomePro Expo running from Oct 15-25 at Impact Muang Thong Thani.
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