With the focus on traditional products and marketing for more than three-quarters of a century, Watcharapong Pongboriboon, a third-generation family member, has begun moving the family firm towards a more modern approach towards packaging, product variety and marketing.

Improving on the family's traditional-medicine formulas, Khao-La-Or Laboratories today combines traditional manufacturing with modern technology to ensure high quality and worldwide exports.

The company records annual revenues of Bt50 million to Bt60 million from domestic sales and exports combined, the latter of which are expected to grow an average of 15-20 per cent a year.

Watcharapong said a rising health consciousness had encouraged the company to experiment with new natural remedies.

"The market trend has prompted the company to develop chemical-free products, the better to serve demand," he said.

Since adopting modern manufacturing techniques in 1995, the company has broadened its product line to include herbal medicines, instant herbal drinks, health foods and cosmetics.

"All raw materials are produced purely from Thai herbs," he said.

The company employs 55 scientists to work on research and development for new products.

Acknowledging the importance of R&D, the company sets aside 2-3 per cent of revenues to develop new products.

So far, R&D has been aimed at improving product quality and changing package designs to be more attractive to customers.

Watcharapong believes high quality and price competitiveness to be the two main factors driving export growth.

He said that whereas in the past, production-cost increases were passed on to the consumer, he had changed that to where now the retail price is fixed.

"This will benefit the entire organisation and be fair to consumers," he said.

Watcharapong said 30 per cent of Khao-La-Or products were sold in foreign markets and 70 per cent domestically. To decrease future risk from relying too much on one market, the company will balance both international and domestic sales.

After conducting its own research, the company began exporting to other Asian markets, including Japan, China, Hong Kong, Singapore and Malaysia. Eventually, the firm began exporting to Europe and the United States.

It is also planning to boost its brand recognition and reach out to consumers by opening its own outlets nationwide.

With this goal in mind, the company recently opened a trial outlet in the Save Centre in Thon Buri.

Watcharapong said he was considering opening more of them nationwide in supermarkets and leading hospitals next year.

Petchanet Pratruangkrai

The Nation