Estée Lauder eyes expansion in Thailand through new distribution agreement

By Simon Pitman

- Last updated on GMT

Related tags Asia pacific region Marketing

Estée Lauder eyes expansion in Thailand through new distribution agreement
Estée Lauder’s Thailand subsidiary, ELCA, has signed an agreement with market expansion provider DKSH with the aim expanding its distribution and logistics services in the country.

ELCA is a distributor of prestige cosmetics and fragrances throughout Asia and has signed the agreement with DSKH healthcare business unit, which also specialises in the cosmetics and personal care sector.

The agreement will specifically focus on ELCA’s online business and the promotion of the Estee Lauder-owned global brands Clinique and Bobbi Brown to consumers in Thailand.

ELCA hosts, while DKSH managed logistics and distribution

The partnership will see the hosting and marketing of ELCA’s online shop for the brands’ luxury skin care, fragrances and make-up products, while DKSH will manage logistics and inventory management, together with wrapping and distribution to end consumers.

ELCA originally broke into the Thailand market in 1991 by marketing and distributing the three principal brands – Estée Lauder, Clinique and Aarmis – and has since expanded the business to include the distribution of brands such as Origins, M A C, Jo Malone and DKNY.

“We decided to collaborate with DKSH for our online shop projects based on their broad IT capabilities, their dedication to quality and their capillary distribution network in Thailand that enables them to deliver our products to end consumers efficiently,”​ said Ampornpim Vajrabhaya, Managing Director, ELCA Thailand.

DSKH eyes expansion in Asia Pacific

DKSH provides market expansion services throughout the Asia Pacific region and says it will be able to tap into its existing logistic and distribution operations in Thailand to help support ELCA in its market expansion.

“Thanks to our experienced specialists and our strong SAP based IT platform we are able to quickly and smoothly integrate new business and ensure a smooth transition,”​ said Bernd Lepper, Regional vice president, business unit healthcare, DKSH.

DSKH says that the agreement with ELCA will also serve to strengthen its market position in Thailand and the Asia Pacific region as a whole, and should also gradually contribute to the group’s overall profitability.

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