Tanachira PLC’s journey started with a blend of familial business acumen and a personal passion for entrepreneurship. Educated and interested in the retail sphere, I embarked on a path that led to a transformative partnership with Kate Spade in Thailand. Initially providing advice to the local distributor, our collaboration eventually culminated in taking over the Kate Spade distributorship. This move laid the cornerstone for Tanachira’s debut in the retail market.
From the outset, Tanachira’s vision transcended the traditional “buy low, sell high” retail model. The ambition was to craft a lifestyle-driven retail concept where customers could find products that seamlessly fit and elevate their daily lives. This philosophy has guided the company’s evolution, steering its growth towards creating a brand that resonates deeply with the values and needs of its customers. This is reflected in our success with brands like Marimekko, HARNN, Pandora, Cath Kidston, and others throughout the Asia-Pacific region.
How Does the Company Manage Customers?
The introduction of Pandora, a customizable jewelry brand, marked the beginning of Tanachira’s journey in managing customer expectations. Initially, customers grappled with understanding the value of Pandora pieces, questioning their resale potential and higher costs compared to standard gold items. Educating customers that Pandora’s true value lies in the memories and emotions it encapsulates was a challenge. A gift from a significant other or a memento from a special occasion isn’t something you’d typically pawn or sell.
Tanachira focuses on creating a lifestyle brand, emphasizing the sentimental value of its products over mere transactions. This foundation has enabled us to expand by acquiring and introducing new brands to the market over the last 14 years, shaping the company’s current stature.
Why Do Brands Decide to Partner with Tanachira?
Convincing brands to partner with Tanachira hinges on offering something unique. We target brands that aren’t already entrenched in the market—their natural choice would be a larger entity. Our smaller size allows us to excel in developing and positioning brands effectively. For instance, our partnership with Marimekko began after I spotted their intriguing store in New York City. Through connections facilitated by the Finnish Embassy, we engaged with Marimekko’s CEO in Finland, culminating in a fruitful partnership.
What sets us apart in later stages is our ability to showcase the growth trajectory and performance of managed brands. Our diverse portfolio—spanning from Pandora and HARNN to Marimekko, GANNI, Cath Kidston, and even Gordon Ramsay’s restaurant group—exemplifies our versatility. Each brand stands out on its own merit, allowing us to cater to varied customer needs while preserving the brand’s core identity. Coupled with our strategic brand management and proven results, we stand out as a desirable partner in the retail industry, viewing ourselves as true partners committed to nurturing brands in new markets.
Who Are Tanachira’s Customers?
Tanachira primarily targets middle-income and above segments, focusing on three main demographics: youth, women, and netizens. “Youth” refers to individuals actively engaged in their lives, aware of current trends, and adept at using technology. Women are pivotal, often being the primary purchasers of our products. “Netizens” are those who actively seek and compare information online.
This unique segmentation approach targets individuals and families relatively insensitive to economic cycles, maintaining their lifestyle and spending habits even during downturns. Such customers ensure sustained demand for our products and services.
Has There Been a Permanent Change in Consumer Behaviour Since the COVID Pandemic?
The COVID-19 pandemic significantly shifted consumer behavior, initially perceived as short-term. Customers transitioned from offline to online shopping, a change that has persisted. At Tanachira, we found that existing satisfied customers comfortably transitioned online, maintaining their brand loyalty. Our efforts to bolster our online presence have been successful, exemplified by sales achievements during Marimekko’s advanced screenings.
Unlike temporary solutions like call centres, our customers continue to engage online, benefitting from the convenience and trust we’ve established. This enduring shift underscores our commitment to providing a reliable online shopping experience.
Explaining the Close Working Relationship Between Tanachira and the Brands It Manages
Our relationship with managed brands is built on mutual collaboration. Brand owners have specific guidelines and expectations, which we harmonize to enhance regional sales and growth. While brands focus on increasing product sales, they need insights on “sell-out” performance. Tanachira provides ground-level insights to guide this expansion model, ensuring we meet brand owners’ expectations.
Each brand is unique, and our role is to diversify risk by managing multiple brands. We implement a strategic, long-term growth strategy, aiming to extend the lifecycle of brands in our managed markets to over 20-30 years. Our dual-brained approach, combining scientific precision with artistic marketing, ensures effective communication and sustainable development.
For example, with Marimekko, we set a goal of five locations in Bangkok. Today, we have 15, exceeding expectations. This success came from understanding the brand’s DNA and economics, highlighting our tailored approach to brand management.
What Separates Tanachira from Its Competitors?
Tanachira’s fluidity and adaptability set us apart. We focus on segments aligning with our core strengths, exploring new categories and ventures that fit our financial metrics and lifestyle concept. Starting with jewelry, we expanded into fashion, beauty, wellness, and food and beverage (F&B). Our flexibility was demonstrated when we secured a franchise with Gordon Ramsay, highlighting our dynamic approach.
Today’s retail landscape demands meaningful experiences. Customers seek targeted shopping, influenced by online search and direct destination visits. We don’t just collect brands; each decision is thoughtfully aligned with our vision. Our aim is regional expansion, navigating the changing retail environment to grow sustainably across diverse markets.
How Does Tanachira Manage the Online and Offline Differences in Each Country?
Consumer behavior varies by country, and understanding these differences is essential. Our online success is rooted in building a loyal customer base for managed brands. The pandemic necessitated rapid infrastructure development and a dedicated online team. Today, our 40-person team in Thailand contributes 12% of our revenues.
Online presence now involves compelling visual merchandising, mirroring offline experiences. Our team ensures consistent, knowledgeable customer service across channels, maintaining a zero-complaint policy to ensure high satisfaction.
Main Challenges Facing Tanachira
The greatest challenge is building a team aligned with Tanachira’s vision. We emphasize long-term foundations over quick returns, creating a “Customer Must Have” lifestyle retail experience. This involves developing the right structure, policies, and systems over time. With 700 employees and significant growth, including an SET listing, our progress is evident.
Why Did Tanachira Decide to List on the SET?
Listing on the SET increased our visibility, transparency, and reputation, attracting talent and resources for future growth. As a public company, we bolster our foundation for expansion and enhance our market presence.
Future Vision for Tanachira
In the next five years, we envision elevating Tanachira to unprecedented heights with strong brands, excellent services, and satisfying products. We plan to expand into health, well-being, F&B, and possibly sports, integrating these with our offerings. Our adaptable foundation will enable us to meet changing consumer demands, ensuring sustainable growth in the evolving retail landscape.
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