Issue 59

Thai franchise is expanding regionally to take part in ASEAN’s promising business scene.

Strong economic growth and rising incomes are driving car sales in Thailand’s neighbours, and this has lead to a boom in automotive-related businesses.

According to the Cambodia Automotive Industry Federation, imports of new and used vehicles grew over 10% to 55,000 vehicles last year, and it is expected to increase around 10% this year while data from Myanmar’s Road Transport Administration Bureau showed that in 2015 total new vehicles sales were up 70.6% on the previous year to 6,362. In Laos, the Department of Public Works and Transport reported the total number of vehicles increased by 8.17% to around 1.71 million in 2015, compared with the previous year.

“Cambodia, Myanmar and Laos are new markets with high potential growth since we have observed the rapid increase in cars in the recent years,” says Sirijit Karnchanabatr, general manager of Thai-German company Car-Lack, the parent company of car care service provider Moly Care. “Rich people in these countries own very expensive cars and they need special services for their cars. Moly Care is the pioneer in these markets, we educate them about how to take care of their cars.”

German car care product importer and distributor Car-Lack decided to launch Moly Care in 2006 to offer premium car care services, including car washing, polishing, car interior cleaning, engine cleaning, paint removal and glass coating.

In 2010, the company expanded its business into neighbouring countries, launching a franchise branch in the Cambodian capital Phnom Penh, where it currently has two branches. Subsequently it has opened four branches in Vientiane and one in Yangon. Now, Moly Care has over 50 branches in Thailand, most of which are franchises, and seven overseas.

Karnchanabatr says that the Ministry of Commerce has played a significant role in the company’s overseas’ expansion. “We attended the tradeshow and business matching activity hosted by the Ministry of Commerce and we received some contacts from the event,” she says.

However, she cautions potential companies looking to tap into the regional market that it is not easy to select the right business partner, often taking over a year to ink the deal.

“The right partner is very important for expanding your business abroad. We always spend time selecting the good ones, who are keen on our business and able to operate it under our franchise conditions,” she explains. “Each Moly Care business partner must complete our questionnaire which requires them to conduct a market survey to prove their determination. This process also helps them to have clearer picture of the business.”

In addition to finding a capable partner, Karnchanabart said that high quality products and services, car care knowhow, and a sound marketing strategy are key factors behind the company’s success.

Moly Care plans to expand its business through franchises in Vietnam, Indonesia and the Philippines. “Franchising is the best business model for Moly Care because we believe that local [partners] know best about the most effective marketing strategy and local laws and regulations that are all crucial for operating a successful business in other countries,” says Karnchanabart.

For more information, visit www.molycare.com or e-mail This email address is being protected from spambots. You need JavaScript enabled to view it.">This email address is being protected from spambots. You need JavaScript enabled to view it.

Words by Somhatai Mosika