Tissue dreams ahead: Kuma Thailand to build dedicated factory in five years
Kuma (Thailand) Co, the parent firm of the Kuma tissue brand, is setting its sights on augmenting its production capabilities by developing a dedicated factory within the next five years. The goal of this ambitious project is to bolster the company’s capacity and pave the way for future product expansion in the consumer goods sphere.
The director at the helm, Komkrit Kajornweeraphan, disclosed plans about the upcoming facility, intended to house the production of a fresh array of consumer goods. Reportedly, these new additions to Kuma’s product line-up will include an array of liquid cleansing and other hygiene-focused products.
According to Komkrit, the global pandemic spurred a remarkable surge in the demand for hygiene products, a trend that Kuma intends to capitalise on. The financial specifics related to the investment in the new factory, however, remain under wraps for now.
In Komkrit’s view, the new product array will foster diversification and reduce the dependence on Kuma’s tissue paper-based products.
“We want to be an alternative brand choice for consumers. We see a huge opportunity for liquid cleansing products because they are used on a daily basis.”
From its genesis in 2016 marketing wet tissue paper in Thailand, Kuma’s journey has included the introduction of a variety of tissue paper products. Catering to a cross-section of customer preferences, Kuma presents two distinct brands. The eponymous Kuma is earmarked for premium customers while the Lalabear caters to the medium and low market segments.
Currently, Kuma claims a monthly production threshold of close to 9 million tissue paper pieces. It is noteworthy that 70% of this production is outsourced to an original equipment manufacturer (OEM) in China. Manufacturing support is also brought in from Indonesian and Thailand-based OEMs, with a contribution of 20% and 10% of the total production respectively.
Kuma’s performance during the pandemic has seen steady growth, with profits soaring from 229 million baht in 2020 to an impressive 1.2 billion baht in 2022. Komkrit said…
“The established distribution network constructed over the years, thanks to my family’s long history in the toy wholesale business in Pathum Thani, has proven instrumental to Kuma’s success.”
Distribution is broad-based for Kuma tissue, with the product available in wholesale stores nationwide. Forecasts for sales posit an increase by a minimum of 30%, taking the total to 1.56 billion baht this year. The five-year target is to see sales double to 3 billion baht, reported Bangkok Post.
To ensure long-term sustainable growth, ambitious expansion plans into traditional trade channels in Laos, Myanmar, and Vietnam are on the anvil. Meanwhile, within the domestic market, the focus is on increasing the visibility of premium tissue products through modern retail avenues. Customers can already purchase Kuma premium tissue products at selected branches of OfficeMate and the Eveandboy beauty chain.
Towards fortifying the company’s infrastructure, 60 million baht has been earmarked to construct a new office building on a two-rai plot in Pathum Thani over the coming year. The proposed structure is slated for completion within the next 24 months.
Interesting to note is that the cleansing tissue paper market in Thailand alone promises a potential worth of over 4 billion baht per annum.
