Sappe Public Company Limited, or SAPPE, made another new high in its performance in the second quarter of 2022, hitting the second consecutive all-time high with a net profit of 167.3 million baht. The achievement was mainly a result of a marketing strategy in the foreign market which made Sappe products become outstandingly trendy particularly in Europe, Asia and the Middle East. The significant growth was seen amid the current crisis around the world. The company aims to reach its goal of becoming a global brand with triple growth in revenue of 10 billion baht within five years.
Sappe CEO Ms. Piyajit Ruckariyapong said the operating performance in the second quarter reached another all-time high with total revenue of 1,334.5 million baht, growing 38.9% compared to 960.5-million baht in the previous year. Additionally, the second quarter’s net profit was 167.3 million baht, rising 31.9% compared to 126.9 million baht in the previous year. The company has set revenue growth this year to increase by more than 20% from the past year. This is in line with the operating plan to reach 10 billion baht in revenue in five years which includes an expansion of foreign and domestic markets, All Coco, and mergers and acquisitions (M&A) strategy.
“We have followed our plan quite well especially in the foreign market, thanks to the strength of Sappe’s quality business partners around the world, particularly Europe where we grow 92.1%, followed by 83.9% and 59.3% in Asia and the Middle East respectively. In the challenging situation with crises around the world, we could still be able to grow continuously leaps and bounds”
“Furthermore, local influencers in several countries have mentioned Mogu Mogu more and more, becoming viral in Europe. In addition, the main stream media in some countries talks about our products making them known by word-of-mouth. This is a very good momentum as this means we take another step forward to get close to our aim to bring this Thai brand to become a global brand strongly and sustainably”
The Sappe CEO added that the success of Mogu Mogu, which is currently available in 98 countries, has moved a step forward to become a “lifestyle brand” on ZEPETO, Asia’s biggest metaverse platform where the brand made its debut in the application in late July. Within one week after the launch in ZEPETO, Mogu Mogu was able to boost its sales volume of items on the platform to reach more than 200,000 items, four times higher than expected. The Mogu Mogu items have already become the best items for the ZEPETO users in many countries.
Apart from this, Mogu Mogu’s photo booth, which gives impressive moments for ZEPETO fellows to film short VDO clips with friends, also gained massive attention with 900,000 engagement and more than 43,000 clip-sharing. Furthermore, a collaboration between Mogu Mogu and Graver of Anaheim, famous teenage clothing in South Korea, has become so popular that products are out of stock in some periods and need pre-orders. Also, more brands have approached us to become our partners. This indicates that Sappe’s brand building and online to offline marketing strategy have brought about overwhelming feedback and made more access to wide-ranging customers.
“The trend is a wave to help all regions to swiftly grow and be able to expand product distribution in a large number. We are determined to develop more products for the international market in order to build on the success of Mogu Mogu to expand the network of sale channels in more than 90 countries where we are doing business in the upcoming years”, Ms. Piyajit said.