Capitalizing on our Asia-wide network2005 was a golden year in Thailand, <strong>Vietnam</strong>, Cambodia,Myanmar and Laos. An extended product and services portfolio,major new accounts in Thailand and <strong>Vietnam</strong> anddouble-digit sales growth firmly put their stamp on theyear. Increasingly, we provide our services to local Thaiagencies, often distributing their products not only in Thailand,but exporting them all across Asia.In Thailand we are known by our original companyname of Diethelm. After a hundred years in that country,we felt the time had come to thank our esteemed retailersand consumers for one hundred years of partnership bystaging the Diethelm Fair and with Gold Rush, a consumercampaign. A welcome side-effect was the rise in sales fromthe publicity the two initiatives generated.Construction of our new distribution center in Bangkokstarted in late 2005. Our almost-as-new <strong>Vietnam</strong>esedistribution center opened in February 2005. The addedcapacity and state-of-the-art infrastructure of these newfacilities will help us raise the quality of the services weprovide for our suppliers and the retail trade to an evenhigher plane. At the same time, the new distribution centersare vital for extending our strong position in these keymarkets.Luxury & LifestyleLuxury & Lifestyle, comprising watches, writing instruments,apparel, hair and skin care products as well as premiumhousehold goods, has its own, dedicated strategy.Last year we accelerated the strategic forward integrationinto the specialty luxury and lifestyle retail segmentstarted in 2004.Across Asia we operate our own Chronos and Noblehousemulti-brand boutiques for watches and lifestyleproducts, as well as single-brand boutiques for ManufactureRoger Dubuis, Porsche Design, Dunhill or Montblanc.Together, these outlets represent a vital part of our luxuryand lifestyle expansion strategy, right to the consumer,which turns us into retailers and brand-builders, in additionto our well-established position as wholesalers. Superb salessupport, advice and service makes shopping at our exclusiveboutiques a pleasurable experience for today’s highly discerningcustomer.Manufacture Roger DubuisAs the exclusive distribution partner for Asia, for the pasttwo years we have opened flagship stores for RogerDubuis luxury watches and jewelry in Jakarta, Singapore,Hong Kong, Bangkok, Kuala Lumpur and Tokyo and shopsin-shopsin multi-brand stores in all major Asian cities.We intend to open more boutiques and departmentstore shops-in-shops in 2006.Porsche DesignIn 2005 we were appointed Asian master franchisee forPorsche Design. True to the slogan of Porsche as ‘the engineersof passion’, our boutiques create an environmentby displaying that brand’s leather and vinyl luggage andaccessories, watches, writing implements, smoking accessories,pocket knives and fashion items, catering mainly toa male clientele.Porsche Design products are produced under license byworld-class manufacturers including Mueller & Meirer (luggageand accessories), Eterna (watches), Faber-Castell (writinginstruments), Rodenstock (eyewear), Wenger (pocketknives) and Royal Dutch (smoking accessories). Last year weopened our first Porsche Design Boutique in <strong>Vietnam</strong>’s HoChi Minh City, followed by another in Kuala Lumpur, aswell as two Tokyo flagship stores, one in the Ginza, onein Omotesando, and another in Osaka. This year in April anew boutique opened its doors in Bangkok, with one moreon the way. Singapore and Seoul will soon have boutiquesof their own as well.Premium household goodsAs distribution market leaders in this specialized field,we chalked up excellent results in Australia and Korea,thanks to prestigious international brands such as J.A.Henckels and Zyliss.22 Annual Review 2005
Food & catering services2005 was a very good year for our food & catering servicesbusiness, which provides luxury hotels, restaurants, clubs,airline caterers and bakery chains with premium grade,semi-finished pastry products, imported coffee and teabrands and the machines to go with them.In Macao and China, opportunities for growth are staggeringand we fully intend to take advantage of them. Wealso want to grow even stronger in Hong Kong and buildour business in Malaysia one step at a time.Levi’sUnder our licensing agreement with Levi Strauss of theUS, <strong>DKSH</strong> Thailand’s Fashion Apparel business manufacturesand markets a full range of men’s and women’stops and bottoms of the Levi’s brand, as well as similarlybranded accessories. Backed by its marketing, merchandisingand sales departments, the business operates sewingand laundry operations, a distribution center, handleslogistics and R&D, and services all Levi’s retailers.To maintain the momentum generated in years past,in 2005 we launched appealing new men’s and women’sproducts, with the most successful among them in premiumfashions. Our new Women’s Fit range was particularlysuccessful. But because new products alone cannotattract enough additional customers, we ran advertisingand marketing campaigns to spotlight the recent arrivals.Realizing the need for appealing stores, conducive tofull shopping enjoyment, we made major investments inupgrading our existing stores and in new retail outlets,three of them last year alone. This brings the number of<strong>DKSH</strong>-managed Levi’s stores to 19. We also control 101 departmentstore counters across Thailand. We are launchingseveral exciting new lines this year, particularly inyoung people’s apparel. High-profile marketing and salescampaigns are sure to stir up extra excitement.2006 is the Year of the Dog. If the pooch continues tohappily wag his tail, local economies will grow, tourismwill flourish and consumer confidence will stay high. Inshort, auguries are good for another record year for Levi’sin Thailand.Annual Review 2005 23