BERGAMOT-MAKER GUARANTEES RESULTS, SAYS HE HAS PERSONALLY USED IT TO TREAT CONGENITAL BALDNESS

       Odinric-Thai, the market leader in hair-loss treatment products, offers a customer-satisfaction guarantee - one to which the company's owner says he can personally attest."We can guarantee customers that our product works. I myself use it to treat my congenital baldness, and members of my family use it to keep their hair healthy," said Virath Boonkarn, chief executive officer of the company, in an interview with The Nation.
       The company's flagship brands include Bergamot, Presenta and Nash.
       Launched as Serm Suay 77 in 1977 with registered capital of Bt1 million, the company initially focused on selling hair-beauty products. However, Virath wanted to create a business with a more sustainable income.
       He thought back to his days as a salesman of hair-salon products and cosmetics. His baldness had been a major impediment to his career, robbing him of his confidence in meetings with clients.
       "It is very important for anybody working in the cosmetics or beauty-salon business to look good and feel confident if they want to sell products," Virath said.
       Virath looked around for products to treat baldness, focusing on items made from local herbs using local wisdom.
       A doctor, a chemist and an engineer, all friends of Virath, did research on the hair loss-prevention and scalp-enriching qualities of bergamot, a citrus fruit, and other natural ingredients.
       Two years later, the first product, a hair lotion, came out - after being personally tested by Virath.
       "I experienced hair growth after using the formula. It convinced me to launch my first product," Virath said.
       Virath has not stopped conducting research and development, and continues to upgrade his products based on feedback from clients.
       Hair strength and scalp health depend on many factors, he said, such as the condition of the hair roots and excess oil, which can cause hair to fall out.
       To ensure product quality, Virath set up a call centre in 1987 to gather information from and answer questions for clients. He even answers phones and dispenses advice himself.
       "I have personal experience with hair loss. This, combined with the research and development we have done, helps me figure out the right solutions for customers," he said.
       After six months, the products began to sell well.
       A boom in the hair and scalp treatment business has seen the wide-scale opening of hair-treatment clinics offering many services, including surgery. Moreover, One Tambon, One Product (OTOP) goods developed using local wisdom and natural herbs have become very popular. Both developments have helped Odinric-Thai.
       Virath distributed his products through barber shops and beauty salons. In this respect, timing was important, as the late 1970s and early 1980s saw many barbers switch from soap to using shampoo when washing customers' hair.
       Virath said the company marketed its products under one brand, Bergamot, until 1997, when the regional economic crisis hit, forcing the company to launch Presenta, a lower-priced brand, in a bid to maintain market share and sales. Also, there were rumours that its major competitor planned to launch a new hair-growth product.
       "We heard the rumours. We had to protect ourselves by introducing a 'fighting' brand," Virath said.
       The Bt70-million investment required to launch Presenta hurt the company, however, as sales were not as high as projected.
       The company began to promote Presenta again last year, seeing a business opportunity as consumers looked to spend less due to the global financial crisis. It plans to promote the product not only in Thailand but also in the Indochina market.
       In addition to the purely economic factors, stress brought on by the recession could lead to hair loss in some people - a possible business opportunity upon which Virath intends to pounce. He expects to see sales increase in both the domestic and export markets.
       Virath is negotiating with a potential business partner in Singapore to produce goods on an OEM, or original equipment manufacturer, basis for Odinric-Thai.
       Among the company's other brands is the Nash line of cosmetics.
       The flagship Bergamot brand accounts for the lion's share of sales with 80 per cent, followed by Nash with 12 percent and Presenta with the remainder. Sales of Bergamot goods have grown by an average of 10 to 20 per cent a year.