With reference to the below case and other resources answer the following questions:

Question 1

How did JTTS extend its product line? Do you think JTTS has extended too much? Justify your answer.

Question 2

Do you think JTTS is differentiated sufficiently from other lifestyle brands. Provide support and compare with other competitive brand.

Case

JIM THOMPSON THAI SILK COMPANY

Started in 1951, the Jim Thompson Thai Silk Company (JTTS) is a leading Asian lifestyle brand based in Thailand. It sells silk \fabrics, apparel, accessories, and home furnishings. Its reputable quality and designs with a Thai feel are endorsed by the Thai royalty, one of the few brands that claim this honor. Today JTTS has over 50 retail stores in Thailand, Singapore, Malaysia, Dubai, Brunei, and Japan, and a presence in 30 countries.

Jim Thompson, its founder, first came to Thailand at the end of the Second World War as an officer of the Office of Strategic Services. He liked the country so much that later, on being discharged from the service, he decided to return to Thailand and make it his home. He travelled extensively throughout the country and during one such journey, he came across a fledgling Thai silk cottage industry in the Ban Krua community. Although Thailand has a strong tradition in handwoven silk making this declined when more affordable machine-woven fabrics from Japan became available in the early 19^th century. Thompson wanted to revive this tradition and began the company that has captivated the Thai royalty and celebrities worldwide. In 1962, in recognition of his contribution to the development of the Thai silk industry, the Thai government awarded Thompson the Order of the White Elephant, a royal decoration honoring foreigners deemed to have rendered exceptional service to Thailand. I 1967, while on holiday with friends in the Cameron Highland in Malaysia, Thompson set out for a walk in the surrounding jungle but never returned. His body was never found. Thus began Jim Thompson legend.

More than just the romantic allure of a traditional industry made good by an American and Thompson's mysterious disappearance, JTTS stand on its own on two other factors. First, JTTS offers a unique blend of Thai tradition and heritage with Western contemporary designs. Its designers make attractive and upmarket designs and colours on Thai silk to used on a range of products. Second, JTTS elevates what was cottage industry product to a lifestyle concept. It grew from manufacturing silk fabrics to other products. Its product portfolio includes, Its product portfolio includes scarves, handbags, and home furniture accessories. Its home furnishing line includes sofas, armchairs, dining and coffee tables, and lamps-finished products for the home. It was London-based Thai designer Ou Bahalyodhin, known for his Asian-influenced clean designs, to craft its furnishing line. The home furnishing line contributes almost 30 percent of its total business and 90 percent of its total exports. JTTS also started a chain of fine-dining restaurants in Bangkok, Malaysia and Singapore.

Within its handwoven silk line, JTTS has extended customized fabrics. In a collaboration with Ed Tuttle, a leading American designer, JTTS provides custom-made fabrics for projects such as the Aman Resorts and Park Hyatt Hotels. The Park Hyatt Paris, for instance, used 9,000 square meter of furnishing materials alone from JTTS. JTTS's furnishing materials also grace luxury hotels such as the Oriental, The Regent, Conrad and Sukhothai.

Many of JTTS products are made of lustrous Thai silk. Unlike Chinese silk that is smooth, Thai silk is inconsistent, characterized by knots along its grains. It also comes in iridescent colors that change depending on the reflection of the light. Given its knotty texture, Thai silk is not suitable for garments but ideal for home furnishing accessories. Thus, JTTS sells picture frames, toiletry bags, and purses in Thai silk, garments are sold in other fabrics. Today, about half of its product come in handwoven silk, and the other half in other materials.

As JTTS is strongly linked to Thai culture, its appeals to tourists who want to take a piece of Thai experience back with them. Hence, in Thailand, some 40 percent of its retail customers are Japanese tourists who buy them as gifts. Even in Malaysia and Singapore where JTTS has a retail presence, 80 percent of its sales from Japan.

JTTS is cognizant of maintaining high quality for its products. To ensure this, it establishes close personal ties with the Thai weaving community and gives them a small stage in the company, it is also vertically integrated in its production to control the quality of the output.

JTTS relies on below-the-line communication such as fairs and exhibitions to raise awareness of its brand. Its products are showcased at such events. Its retail stores are designed to provide a homely atmosphere, showcasing a wide range of its products. Mass communication channels such as advertising are used sparingly. Instead, JTTS maintains a list of its customers in Thailand and informs them of forthcoming promotions. It relies on such customers to spread favorable word of mouth regarding its brand.

Another communication tool that JTTS used is the establishment of a museum to promote the legend behind its founder. The Jim Thompson House in Bangkok is a private museum open to the public. It houses Thai art and craft as well as the entire product portfolio of JTTS. It is the second most visited attraction after the Grand Palace.