Case study: difficulties of the Thai sofa manufacturer expanding from OEM to direct-to-consumer brand

Abstract

This study examines the challenges faced by Sofara, a Thai furniture manufacturer, in transitioning from an Original Equipment Manufacturer (OEM) to a Direct-to-Consumer (D2C) business model. Using qualitative methods, including interviews with key stakeholders and analysis of secondary data, the research identifies factors hindering Sofara's success in attracting individual consumers. Findings reveal strategic misalignments (e.g., isolated showroom location, outdated products), marketing deficiencies (inadequate product presentation, ineffective social media engagement), and operational challenges (resource misallocation,understaffing). The study concludes that addressing these issues through strategic adjustments, marketing enhancements, and operational improvements is crucial for Sofara's success in the D2C market. This research offers insights for businesses undergoing similar transitions, emphasizing the importance of aligning strategies with consumer expectations and market trends.