As energy technology rapidly evolves, PTT Oil and Retail Business Plc (OR) is diversifying its strategy into the “growth zone” of health and wellness.

OR formed strategic partnerships with leading companies from Japan and South Korea to drive its expansion into health and beauty retail, said chief executive Disathat Panyarachun.

OR’s new retail concept — the “found & found” store — focuses on health and beauty products. The company plans to grow this chain from three stores to 10 prototype locations by the end of this year, with a target of 500 stores by 2030, he said.

The three existing stores are all located in Bangkok at the Energy Complex, Boromratchonnanee and Sai Mai.

“We have to acknowledge the oil business is risky because of fast-paced technological changes. The rise of electric vehicles [EVs] and alternative energy technologies, like hydrogen, compels us to adapt. If we stay idle, we will disappear,” said Mr Disathat.

“We are shifting from our comfort zone to a growth zone, focusing on the health and wellness industry, which still holds significant growth potential in Thailand.”

Market analysis indicates the leading player in Thailand’s health and beauty retail market holds only a 9% market share.

OR, with its strong nationwide retail network through PTT stations, sees a promising opportunity to establish itself as a key player in this sector.

Mr Disathat outlines the company’s new strategy to expand into the health and wellness business through partnerships.

“Thailand is home to Southeast Asia’s second-largest health and beauty market, valued at 350 billion baht in 2022. Consumers are increasingly focused on self-care. With international and local strategic partners, OR aims to capitalise on this trend by launching a new retail format offering a seamless shopping experience across both offline and online channels,” he said.

“We will provide unique and affordable products from Japan, Korea, and Thailand, creating a new growth curve for the company.”

Roughly 60-70% of OR’s earnings before interest, taxes, depreciation and amortisation are derived from the petrol business, with the remainder coming from non-oil businesses. The company wants to adjust this ratio to 50:50 by 2030.

“We don’t want to just be landlords, leasing space at our PTT stations. We want to actively participate in the retail business ourselves — found & found will be our flagship in the health and beauty market,” said Mr Disathat.

In the initial phase, OR plans to leverage its retail and trading expertise to enter the health and wellness market.

In the future, the company may expand into upstream production, he said.

“Our strength lies in the retail business, and we have a robust physical platform with our PTT stations,” said Mr Disathat.

“We need to utilise these advantages to build new business ventures.”

OR partnered with Sugi Holdings Co, one of Japan’s largest and fastest-growing drugstore chains, to bring a wide range of high-quality, unique and affordable products to Thai consumers.

The partnership combines Sugi’s expertise in health and beauty products with OR’s extensive physical network and Blue Plus loyalty programme to accelerate growth in Thailand’s health and beauty retail market.

The new store concept is slated to launch this year.

OR also partnered with Amorepacific, a leading South Korean beauty product company, to explore the Thai market.

“In the early stages of our new business, we need strong partners. Japan and Korea are the leaders in the global health and beauty market,” said Mr Disathat.

“As we strengthen our network and gain experience, we will definitely bring in quality Thai producers as partners. We also have a Thai partner, Konvy, the leading beauty e-commerce platform.”

Nattapon Choojitarom, managing director of subsidiary OR Health & Wellness Co, said the company wants to transform Thailand’s health and beauty landscape through the found & found store concept.

The stores offer a diverse range of products, including cosmetics, skincare, supplements and vitamins, curated from both local and international partners, including exclusive brands from Sugi Holdings such as Prieclat U, S-Select, Under Method and T3.