The Acquisition Represents the First Step in Datamax-O'Neil's Long-Term External Growth Strategy to Gain Market Share and Strengthen Its Leadership Position in the Global Auto-ID Market by Broadening Its Product Offerings and Global Presence
Datamax-O'Neil, part of Dover Corporation's (NYSE: DOV) Product Identification Platform and global provider of label and receipt printing solutions, has acquired Extech Instruments' Data Systems Division, one of the world's leading developers of portable printers for enterprise-wide applications. Extech Instruments, based in Waltham, Massachusetts is a subsidiary of FLIR Systems. The acquisition expands Datamax-O'Neil's portable printer portfolio, and strategically positions the company to gain market share and significantly grow its global customer base.
"This acquisition is an early example of our goal to distinguish Datamax-O'Neil as the clear leader in the auto-ID marketplace, with the industry's most complete product range and an aggressive plan for global marketshare growth," said Christian Lefort, president of Datamax-O'Neil. "I'm pleased to welcome Extech's portable printing division into Datamax-O'Neil and believe that this addition positions us and our combined channel partners to be more competitive and achieve greater success."
"Datamax-O'Neil has completed its unification and has now begun to implement its long-term strategy for sustained growth," said Omar Kerbage, president and CEO of Dover Corporation's Product Identification Group (PIDG). "The opportunity to better service our customers is now expanded with this acquisition, and I have confidence that the Datamax-O'Neil management team can execute an effective plan that will lead to market leadership with a superior suite of products, unmatched service, and the support and extensive resources available from Dover's PIDG."
Extech Instruments' portable printer division offers a diverse line of thermal and dot matrix portable printers that are sold worldwide through an expansive network of distributors and marketing partners. The division will be fully integrated into Datamax-O'Neil over a four month period, and the printers will be marketed under the Datamax-O'Neil brand. The printers will complement Datamax-O'Neil's premium portable printer portfolio with the addition of a full line of high-value, cost-competitive printers for mobile requirements, including Point-of-Sale (POS), hospitality, route accounting and field service. The printers will appeal to price sensitive applications, and are available in 2, 3 and 4 inch configurations.
About Datamax-O'Neil
Datamax-O'Neil is a trusted global provider of stationary and portable label and receipt printing solution products that enable manufacturing and supply markets to capture the benefits of automated product identification and automated legal and financial transactions. Datamax-O'Neil is the barcode and mobile printing business group of Dover Corporation's Product Identification Group (PIDG), a global platform entity with products and services covering all the leading marking technologies and applications. The company's products address a wide variety of applications, including those in the industrial, healthcare, retail, automotive and ticketing market sectors. Datamax-O'Neil is headquartered in Orlando, Florida, and maintains key facilities in California, Illinois, and France, as well as sales and technical support offices around the world.
About Dover's Product Identification Group (PIDG)
Dover Corporation's Product Identification Group (PIDG) is a world class business group with products and services covering all of the leading marking and labeling technologies and applications. PIDG is comprised of two industry leaders --Markem-Imaje and Datamax-O'Neil. The goal of PIDG is to help its customers integrate optimal product identification solutions into their supply chain operations to increase productivity and operating efficiencies. The PIDG is unique in several ways: it provides a global understanding of key account applications throughout the supply chain; a continuously updated global expertise; and worldwide best-in-class service and support.
Wednesday, December 16, 2009
‘Roses of the North’ Charity Exhibition
Flowers can make everyone feel happy…. H.E.Privy Councillor Palakorn Suwanrath and Thanpuying Dhasaniya Suwanrath recently presided over at ‘Roses of the North’ charity oil painting exhibition inspired by Bhubing Palace organized by L’Occitane and Baan Saen Doi Resort in Chiang Mai. The art of mercy rose oil painting exhibition was held at Peninsula Plaza and part of sales went to support schools and hospitals where are needed in Chiang Mai. Many kind hearted celebrities attended the event including Khunying Dhipavadee Meksawan, Mr.Harald Link, Arunee Bhirombhakdi, Atchara Tejapaibul, M.L.Sirichalerm Svasti, M.L.Thongmakut and Jarujit Thongyai, Yuwadee and Nidsinee Chirathivat, Dararatana and Toey Mahadumrongkul, Chadapah Snidvongs, Captain Deuntemduang Na Chiengmai, Pimpawan Limpichart, Joy Sopitpongstorn, Panitnuj Bunnag, Piranuj T.Suwan, Sodsoi Chomthavat, Mayura Savetsila, Wanchana Sawasdee and more.
The exhibition showcased of over 70 oil painting of roses flowers by artist and art lecturer Narin Phothisombat. Narin Phothisombat is a talented artist with an art degree from Chiang Mai Technology Rajchamonkol. His painting was inspired by roses from Phra Tamnak Bhubing Rajanives (Bhubing Palace). His painting reflected his pride and passions towards the beauty of nature for roses including Queen Sirikit, Eliza, Rouge Meilland, Queen Elizabeth and Royal Air Force.
In addition there was the charity auction on 2 oil painting pieces. The first one was the painting of Queen Elizabeth which won by Harald Link, CEO of B.Grimm for 120,000 Baht and the other piece on Queen Sirikit won by Arunee Bhirombhakdi for 75,000 Baht.
The exhibition showcased of over 70 oil painting of roses flowers by artist and art lecturer Narin Phothisombat. Narin Phothisombat is a talented artist with an art degree from Chiang Mai Technology Rajchamonkol. His painting was inspired by roses from Phra Tamnak Bhubing Rajanives (Bhubing Palace). His painting reflected his pride and passions towards the beauty of nature for roses including Queen Sirikit, Eliza, Rouge Meilland, Queen Elizabeth and Royal Air Force.
In addition there was the charity auction on 2 oil painting pieces. The first one was the painting of Queen Elizabeth which won by Harald Link, CEO of B.Grimm for 120,000 Baht and the other piece on Queen Sirikit won by Arunee Bhirombhakdi for 75,000 Baht.
Tuesday, December 15, 2009
NEW YORK STILL WORLD’S MOST EXPENSIVE RETAIL LOCATION AS PRIME RENTS BEGIN TO STABILISE ACROSS KEY MARKETS
Increasing Differentiation Between the “Best and the Rest” of Retail Units
Prime retail rents began to stabilise in many markets across the world in the third quarter of 2009, as economic and retail indicators started to show signs of greater stability and retailer confidence gained positive momentum. Retail rents globally fell by an average of 1% from the second quarter to the third quarter of 2009, according to CB Richard Ellis’ (CBRE) latest Global MarketView on the retail sector.
New York’s reign as the world’s most expensive retail market continued in Q3 despite a 25% rental decline over the past 12 months. Prime New York retail rents ended Q3 at THB 49,074 per square meter per month (US$1,640 per square foot per annum). Hong Kong and Paris retained their places as second and third in the global rankings, with rents of THB 29,205 and THB 25,644 per square meter per month (US$976 and US$857 per square foot per annum) respectively. Interestingly, the prime retail markets in Hong Kong, Paris, Sydney and London have demonstrated resilience to the global economic crisis, with stable rents over the past 12 months. Sydney has moved up the global rankings into fourth position; however this is primarily due to the strengthening of the Australian dollar relative to the US dollar. In contrast, Tokyo has seen an 18% decline in rents over the same period, but nevertheless maintained its ranking as fifth most expensive globally. Bangkok was in 73rd position with rents of THB 2,992 (US$100 per square foot per annum).
Peter Gold, Head of Cross-Border Retail in the Europe, Middle East and Africa (EMEA) region, commented: “Although consumers continue to take a cautious approach to spending, consumer confidence has been slowly recovering and is in positive territory in some economies. There are undoubtedly more challenges ahead for many retailers, but retailer confidence has also picked up over the course of the year and expansion into key mature markets and prime locations remains firmly on the agenda across many sectors, including grocery and value clothing retailers.”
According to a recent CBRE survey of 220 leading retailers on their expansion plans for 2010 in the EMEA region, on average 73 of the 200 retailers who are looking to expand (36.5%) plan to open more than 10 stores by the end of 2010. Twenty-five retailers (12.5%) are seizing the current market opportunity to expand more aggressively, opening 40 or more stores over the coming year. At the other end of the scale, 43% of retailers are planning to acquire no more than five stores in 2010 in the EMEA region.
Peter Gold continued: “The picture looks very different between prime and secondary retail space. With many retailers using the current market as an opportunity to ‘trade up’ to better stores and locations – as other retailers consolidate networks and create rare vacancies – a growing differentiation between ‘the best and rest’ of retail units has emerged. Prime retail rents in the top locations are generally quite stable and able to attract tenants; but secondary locations and smaller markets are experiencing rising vacancy, reduced retailer demand and falling headline rents.”
Europe, Middle East & Africa
The EMEA region continues to dominate the world’s most expensive retail markets, containing nine of the top 20 most expensive destinations. Paris, London and Moscow have emerged as the top three markets respectively in the Q3 ranking. The majority of markets saw a degree of stabilisation in prime rents over the summer, although the EU-27 Retail Rent Index decreased by 0.8% in Q3 2009, a decline of 4.0% year-on-year. Vacancy levels are generally low in top locations across the region, yet the definition of ‘prime’ has tightened in many markets. Retailers continue to demand incentives including turnover-based rents, where they feel they are in a strong negotiating position. Interestingly, with development pipelines of new shopping centres being cut across many markets, some retailers are now concerned about a future shortage of expansion opportunities in the coming years, particularly in emerging markets.
Americas
Lower interest rates and government infrastructure spending and incentives have kept consumer spending relatively stable in the Americas but down compared to a year ago. Retail market fundamentals have weakened overall, but not to the same extent as the office and industrial sectors. The region’s retail vacancy rates have increased marginally, as some retailers delay expansion and undertake strategic downsizing, but generally there have not been any drastic changes to the retail property landscape in Q3. U.S. cities continue to lead the most expensive retail rents in the Americas region. Los Angeles and Chicago made the top 20 global ranking at 11th and 15th position respectively, following New York as the most expensive global market.
Asia Pacific
The retail sector in the Asia Pacific region is recovering faster and better than expected, as government programmes and strong economic growth in many markets helped to restore consumer confidence. Hong Kong still ranks as the world’s second most expensive retail rental market, with values of THB 29,205 per square meter per month (US$976 per square foot per annum). Prime retail rents vary significantly across the different Asia markets, but in Q3 retail rents in most cities either declined at a slower rate, stabilised, or showed a slight up-tick. However, the threat of supply-side risk remains significant in certain cities in Mainland China, Singapore and India, where large amounts of shopping mall construction are expected to be delivered in the coming years. In the Pacific region, the retail sector has been surprisingly resilient this cycle, with low vacancy, strong demand and mostly stable rents.
Prime retail rents began to stabilise in many markets across the world in the third quarter of 2009, as economic and retail indicators started to show signs of greater stability and retailer confidence gained positive momentum. Retail rents globally fell by an average of 1% from the second quarter to the third quarter of 2009, according to CB Richard Ellis’ (CBRE) latest Global MarketView on the retail sector.
New York’s reign as the world’s most expensive retail market continued in Q3 despite a 25% rental decline over the past 12 months. Prime New York retail rents ended Q3 at THB 49,074 per square meter per month (US$1,640 per square foot per annum). Hong Kong and Paris retained their places as second and third in the global rankings, with rents of THB 29,205 and THB 25,644 per square meter per month (US$976 and US$857 per square foot per annum) respectively. Interestingly, the prime retail markets in Hong Kong, Paris, Sydney and London have demonstrated resilience to the global economic crisis, with stable rents over the past 12 months. Sydney has moved up the global rankings into fourth position; however this is primarily due to the strengthening of the Australian dollar relative to the US dollar. In contrast, Tokyo has seen an 18% decline in rents over the same period, but nevertheless maintained its ranking as fifth most expensive globally. Bangkok was in 73rd position with rents of THB 2,992 (US$100 per square foot per annum).
Peter Gold, Head of Cross-Border Retail in the Europe, Middle East and Africa (EMEA) region, commented: “Although consumers continue to take a cautious approach to spending, consumer confidence has been slowly recovering and is in positive territory in some economies. There are undoubtedly more challenges ahead for many retailers, but retailer confidence has also picked up over the course of the year and expansion into key mature markets and prime locations remains firmly on the agenda across many sectors, including grocery and value clothing retailers.”
According to a recent CBRE survey of 220 leading retailers on their expansion plans for 2010 in the EMEA region, on average 73 of the 200 retailers who are looking to expand (36.5%) plan to open more than 10 stores by the end of 2010. Twenty-five retailers (12.5%) are seizing the current market opportunity to expand more aggressively, opening 40 or more stores over the coming year. At the other end of the scale, 43% of retailers are planning to acquire no more than five stores in 2010 in the EMEA region.
Peter Gold continued: “The picture looks very different between prime and secondary retail space. With many retailers using the current market as an opportunity to ‘trade up’ to better stores and locations – as other retailers consolidate networks and create rare vacancies – a growing differentiation between ‘the best and rest’ of retail units has emerged. Prime retail rents in the top locations are generally quite stable and able to attract tenants; but secondary locations and smaller markets are experiencing rising vacancy, reduced retailer demand and falling headline rents.”
Europe, Middle East & Africa
The EMEA region continues to dominate the world’s most expensive retail markets, containing nine of the top 20 most expensive destinations. Paris, London and Moscow have emerged as the top three markets respectively in the Q3 ranking. The majority of markets saw a degree of stabilisation in prime rents over the summer, although the EU-27 Retail Rent Index decreased by 0.8% in Q3 2009, a decline of 4.0% year-on-year. Vacancy levels are generally low in top locations across the region, yet the definition of ‘prime’ has tightened in many markets. Retailers continue to demand incentives including turnover-based rents, where they feel they are in a strong negotiating position. Interestingly, with development pipelines of new shopping centres being cut across many markets, some retailers are now concerned about a future shortage of expansion opportunities in the coming years, particularly in emerging markets.
Americas
Lower interest rates and government infrastructure spending and incentives have kept consumer spending relatively stable in the Americas but down compared to a year ago. Retail market fundamentals have weakened overall, but not to the same extent as the office and industrial sectors. The region’s retail vacancy rates have increased marginally, as some retailers delay expansion and undertake strategic downsizing, but generally there have not been any drastic changes to the retail property landscape in Q3. U.S. cities continue to lead the most expensive retail rents in the Americas region. Los Angeles and Chicago made the top 20 global ranking at 11th and 15th position respectively, following New York as the most expensive global market.
Asia Pacific
The retail sector in the Asia Pacific region is recovering faster and better than expected, as government programmes and strong economic growth in many markets helped to restore consumer confidence. Hong Kong still ranks as the world’s second most expensive retail rental market, with values of THB 29,205 per square meter per month (US$976 per square foot per annum). Prime retail rents vary significantly across the different Asia markets, but in Q3 retail rents in most cities either declined at a slower rate, stabilised, or showed a slight up-tick. However, the threat of supply-side risk remains significant in certain cities in Mainland China, Singapore and India, where large amounts of shopping mall construction are expected to be delivered in the coming years. In the Pacific region, the retail sector has been surprisingly resilient this cycle, with low vacancy, strong demand and mostly stable rents.
Boots Natural Collection Multiple Blush Stick
Boots Retail (Thailand) Limited, our trust health and beauty introduces ‘Boots Natural Collection Multiple Blush Stick’, the multi-purpose makeup stick for eyes, cheeks and lips. The Boots Natural Collection Multiple Blush Stick is priced 135 Baht now available at Boots stores nationwide.
Boots Natural Collection Multiple Blush Stick, is inspired by the benefits of natural ingredients that will leave you looking and feeling fantastic. The Multiple Blush Stick is quick and easy to apply. Based on a blend of fruity, Vitamin E, Vitamin C and Vitamin A, the natural collection provides sheer color for creating shimmering accents and glowing complexion. The new product offers an array of shades including Petunia for sweet look, Strawberry Splash for teen and lively girls and Peach Melba for modern chic.
Boots Natural Collection Multiple Blush Stick, is inspired by the benefits of natural ingredients that will leave you looking and feeling fantastic. The Multiple Blush Stick is quick and easy to apply. Based on a blend of fruity, Vitamin E, Vitamin C and Vitamin A, the natural collection provides sheer color for creating shimmering accents and glowing complexion. The new product offers an array of shades including Petunia for sweet look, Strawberry Splash for teen and lively girls and Peach Melba for modern chic.
Gifts for Holiday Season at Boots From Now until January 3, 2010
From now until January 3, 2009, Boots Retail (Thailand) Limited, is now offering ‘Boots New Year Gifts’, the wide selection of lifestyle gifts for the New Year celebration 2010. Shop for less with the mix and match three items on health and beauty products for only 99, 199, 299 Baht or Buy One Get One Free! at over 160 Boots stores nationwide.
Products on special offer include Boots Botanics, Boots Soltan, Boots Time Delay, Boots Carribean Cocktail, Boots Ingredients, Boots Inecto, Boots Natural Collection, Boots the Garden Collection, Boots Natural Collection, Boots Moisturising Crème Bath, Royal Jelly, Boots Extremely C, Boots Royal Jelly, Boots Essential, Boots Caribbean Cocktail and more.
Products on special offer include Boots Botanics, Boots Soltan, Boots Time Delay, Boots Carribean Cocktail, Boots Ingredients, Boots Inecto, Boots Natural Collection, Boots the Garden Collection, Boots Natural Collection, Boots Moisturising Crème Bath, Royal Jelly, Boots Extremely C, Boots Royal Jelly, Boots Essential, Boots Caribbean Cocktail and more.
Friday, November 20, 2009
IT CITY reported its 2009 first 9 months revenue of 4,165 over million Baht
Mr. Kamol Juntima, Chairman of the Board, IT CITY Public Company Limited reported the year 2009’s first 9 months company’s performance that the company’s total revenue was 4,165.59 million Baht with the negative growth of 8.21% and the net profit of 121.27 million Baht with the negative growth of 15.81% comparing to the same period of the year 2008.
As for the third quarter of the year 2009, the company shown the total revenue of 1,566.83 million Baht with the negative growth of 4.03% and the net profit of 58.15 million Baht with the growth of 1.67% comparing to the same period of the year 2008.
The key reasons for the negative growth of the company’s operation during the first nine months was the slow down of the entire Thai economy which incline to have a better improvement in the fourth quarter. The overall of business operation as well as the competitive capability of company is still in the satisfactory level. Today, IT CITY has received the direct support from both domestic and foreign suppliers, we are the comprehensive center for IT products, abreast of the time and focus on the IT retail business that we are specialist which will make us reach the Economy of Scale and be able to provide the quality to serve both consumer and SMEs customers that require the IT products to increase their business and learning ability.
In the third quarter of the year 2009, the company had expanded 2 new branches namely Pantip-Bangkapi and Saraburi province. Moreover, IT CITY will open another 2 new branches at Singhaburi province and Chacheongsao province in the fourth quarter from the existing 36 branches now. Moreover, we will provide more products with the latest technology as well as control the company’s expenditure appropriately to the economic situation and the company’s revenue capability.
As for the third quarter of the year 2009, the company shown the total revenue of 1,566.83 million Baht with the negative growth of 4.03% and the net profit of 58.15 million Baht with the growth of 1.67% comparing to the same period of the year 2008.
The key reasons for the negative growth of the company’s operation during the first nine months was the slow down of the entire Thai economy which incline to have a better improvement in the fourth quarter. The overall of business operation as well as the competitive capability of company is still in the satisfactory level. Today, IT CITY has received the direct support from both domestic and foreign suppliers, we are the comprehensive center for IT products, abreast of the time and focus on the IT retail business that we are specialist which will make us reach the Economy of Scale and be able to provide the quality to serve both consumer and SMEs customers that require the IT products to increase their business and learning ability.
In the third quarter of the year 2009, the company had expanded 2 new branches namely Pantip-Bangkapi and Saraburi province. Moreover, IT CITY will open another 2 new branches at Singhaburi province and Chacheongsao province in the fourth quarter from the existing 36 branches now. Moreover, we will provide more products with the latest technology as well as control the company’s expenditure appropriately to the economic situation and the company’s revenue capability.
Thursday, November 12, 2009
BIG RISE IN PIRACY, ILLEGAL DOWNLOADS HITS DVD-MAKERS
Manufacturers of home-entertainment products, especially DVD movies, have been hit by a huge increase in piracy during the recession.
Home-entertainment products are normally assumed to enjoy higher sales during a downturn, as consumers spend more time indoors and enjoy online games and DVDs and VCDs.
However, Oraphan Monphichit Pavaravadhana, vice president - acquisition and distribution at Rose Media & Entertainment, said the company's sales of VCD and DVD movies are expected to drop by between 60 and 70 per cent this year, due to economic factors and continuous piracy problems, including the increased availability of pirated VCDs and DVDs and a jump in illegal downloads.
Rose Media's sales of cartoon VCDs and DVDs are expected to decline by at least 50 per cent this year, she said.
"Young people are now addicted to TV and computer screens and mobile telephones. They can stay at home and download movie content immediately, and with good picture quality," said Oraphan.
She added that the company expected the contribution from VCD and DVD products to decline gradually and be replaced by such digital services as mobile streaming, Internet Protocol TV (iPTV), video-on-demand and pay-per-view services.
She said Rose Media had recently launched mobile streaming of its "Gang Cartoon" content in cooperation with Advanced Info Service.
The company has also launched a 24-hour Gang Cartoon satellite-TV channel.
"What we have to do right now is to build our Gang Cartoon brand and promote loyalty to the brand, which is created especially for all cartoon lovers," said Oraphan.
"We are also discussing with many partners new business opportunities to deliver our enriched movie and cartoon content via new digital media channels such as iPTV and video-on-demand."
She said the company expected the sales contribution from physical VCD and DVD products to drop gradually from the current 60-70 per cent to less than 20 per cent in the next two to three years.
This follows the trend in other markets such as Hong Kong, Singapore, Japan and Taiwan, where home-entertainment industries have been dominated by new digital media. Rose Media expects to achieve about Bt600 million in sales this year.
Krit Sakulpanich, managing director of Dream Express, which has the local broadcasting and distribution rights for many well-known animations and super-hero TV series from Japan, said the company's sales of VCDs had dropped by 30 per cent from the same period last year. Nine-month DVD sales remained stagnant.
"During the economic difficulties, we have seen a larger number of illegal downloads of our cartoon and TV-series content. As well, the number of pirated VCD and DVD products has increased dramatically in such locations as Klong Thom, Sapanlek, Ban Mo and Seacon Square," said Krit.
He said some pirated DVDs - with five movies on one disc - were now available on the black market at just Bt50 to Bt100 each.
"What we have to do to fight the piracy is to reshuffle ourselves by adding other new products, such as apparel and accessories, into our portfolio," he said.
Krit said Dream Express would launch 10 new licensed animations and super-hero TV series from Japan next year. They include "Gundam Double O", "Ultraman Mebius", "Phone Braver 7", "Bakugan New Vestroia", "Mask Rider Kiva", "The Salads World" and "Pretty Cure 3".
Sakeson Thammawon, general manager of Dream Apparel, a wholly owned unit of Dream Express set up for the sale of licensed clothing tied in to animation and super-hero TV series, said the company would next year open its own sales counters at leading department stores.
The company's apparel and accessory products are now selling via wholesale and hypermarket channels.
"We plan to double the number of stock-keeping units for our apparel and accessory products next year. There are currently more than 100 SKUs in our apparel and accessories portfolio," said Sakeson.
Dream Apparel expects to achieve Bt40 million in sales this year, which will contribute 20 per cent of Dream Express's overall sales. The company expects clothing sales to grow by almost 50 per cent next year.
Dream Express expects its sales to reach Bt200 million this year, which is about the same as last year.
Home-entertainment products are normally assumed to enjoy higher sales during a downturn, as consumers spend more time indoors and enjoy online games and DVDs and VCDs.
However, Oraphan Monphichit Pavaravadhana, vice president - acquisition and distribution at Rose Media & Entertainment, said the company's sales of VCD and DVD movies are expected to drop by between 60 and 70 per cent this year, due to economic factors and continuous piracy problems, including the increased availability of pirated VCDs and DVDs and a jump in illegal downloads.
Rose Media's sales of cartoon VCDs and DVDs are expected to decline by at least 50 per cent this year, she said.
"Young people are now addicted to TV and computer screens and mobile telephones. They can stay at home and download movie content immediately, and with good picture quality," said Oraphan.
She added that the company expected the contribution from VCD and DVD products to decline gradually and be replaced by such digital services as mobile streaming, Internet Protocol TV (iPTV), video-on-demand and pay-per-view services.
She said Rose Media had recently launched mobile streaming of its "Gang Cartoon" content in cooperation with Advanced Info Service.
The company has also launched a 24-hour Gang Cartoon satellite-TV channel.
"What we have to do right now is to build our Gang Cartoon brand and promote loyalty to the brand, which is created especially for all cartoon lovers," said Oraphan.
"We are also discussing with many partners new business opportunities to deliver our enriched movie and cartoon content via new digital media channels such as iPTV and video-on-demand."
She said the company expected the sales contribution from physical VCD and DVD products to drop gradually from the current 60-70 per cent to less than 20 per cent in the next two to three years.
This follows the trend in other markets such as Hong Kong, Singapore, Japan and Taiwan, where home-entertainment industries have been dominated by new digital media. Rose Media expects to achieve about Bt600 million in sales this year.
Krit Sakulpanich, managing director of Dream Express, which has the local broadcasting and distribution rights for many well-known animations and super-hero TV series from Japan, said the company's sales of VCDs had dropped by 30 per cent from the same period last year. Nine-month DVD sales remained stagnant.
"During the economic difficulties, we have seen a larger number of illegal downloads of our cartoon and TV-series content. As well, the number of pirated VCD and DVD products has increased dramatically in such locations as Klong Thom, Sapanlek, Ban Mo and Seacon Square," said Krit.
He said some pirated DVDs - with five movies on one disc - were now available on the black market at just Bt50 to Bt100 each.
"What we have to do to fight the piracy is to reshuffle ourselves by adding other new products, such as apparel and accessories, into our portfolio," he said.
Krit said Dream Express would launch 10 new licensed animations and super-hero TV series from Japan next year. They include "Gundam Double O", "Ultraman Mebius", "Phone Braver 7", "Bakugan New Vestroia", "Mask Rider Kiva", "The Salads World" and "Pretty Cure 3".
Sakeson Thammawon, general manager of Dream Apparel, a wholly owned unit of Dream Express set up for the sale of licensed clothing tied in to animation and super-hero TV series, said the company would next year open its own sales counters at leading department stores.
The company's apparel and accessory products are now selling via wholesale and hypermarket channels.
"We plan to double the number of stock-keeping units for our apparel and accessory products next year. There are currently more than 100 SKUs in our apparel and accessories portfolio," said Sakeson.
Dream Apparel expects to achieve Bt40 million in sales this year, which will contribute 20 per cent of Dream Express's overall sales. The company expects clothing sales to grow by almost 50 per cent next year.
Dream Express expects its sales to reach Bt200 million this year, which is about the same as last year.
Sunday, November 8, 2009
DOPE, THE MUNCHIES AND ADVERTISING
After US Attorney-General Eric H Holder Jr announced in March that he would end the Bush administration practice of frequently raiding medical marijuana dispensaries, the dispensaries have been growing, appropriately enough, like weeds.
Among the 14 states with medical marijuana laws, Colorado has experienced particularly brisk growth in the stores. From fewer than two dozen dispensaries in the state in January, there are now more than 60 just in Denver and nearby Boulder, and more than 10,000 registered medical marijuana patients statewide, according to reports in Westword , a Denver alternative weekly.When Westword announced recently that it would hire a registered patient to write reviews of the dispensaries (for a column called "Mile Highs and Lows''), it received 400 applications, according to Patricia Calhoun, its editor. And dispensary owners called ganjapreneurs in a recent headline in the weekly - are placing ads, accounting for nearly seven pages of advertising in a recent 92-page issue.
Now a business that has nothing to do with cannabis is aiming its ads at medical marijuana patients.A new print ad - by TDA Advertising and Design of Boulder - for Hapa Sushi, a restaurant chain based in Boulder, features a map of Denver and Boulder with 63 dots.Four dots are red, rep- resenting the four Hapa locations, and the remaining 59 are blue, representing medical marijuana dispensaries, some of which,it turns out, are just a stone's throw from the restaurants. The ad was to appear on Thursday in the Denver/Boulder edition of The Onion and in Westword later in the month.
"We're just kind of saying:'Look, these dispensaries exist and they're becoming part of our community, so let's welcome them in and have some fun','' said Mark Van Grack,owner of Hapa Sushi, a privately held,10-yearold chain. "If you're going to smoke pot,you're going to get the munchies, so come to Hapa to eat.''
As in most Hapa advertising over the years,something is conspicuously absent from these ads - food.
"Most restaurants show food, but then you're just one of a hundred,'' Mr Van Grack said.
"We think that our clientele appreciates smart ads that grab their attention. By creating ads that people want to talk about, that are creative and maybe controversial, then at least they are talking about our ads and Hapa is top of mind.''
Jonathan Schoenberg, the creative director at TDA, said of the Hapa ads:"We
try to keep these guys in a culturally
significant place.''
In 2007, when Barry Bonds hit his 755th home run to tie Hank Aaron's record (which Bonds soon broke), the agency created a Hapa print ad
that alluded to allegations of steroid use by Bonds.
"Congratulations Hank Aaron on 755
home runs,'' the ad declared.Smaller print below added:``Organic beef and chicken,no added steroids.'' An Associated Press wire story about the ad was reprinted in publications throughout the country, and some readers were not amused.
"I had some guy from San Francisco call me every day for a week because he was offended by the ad,'' said Mr Schoenberg. "But he lived in San Francisco, so we didn't care.''
Van Grack, Hapa's owner, recently came up with a marketing stunt on his own, with no help from his agency.
Last month, Boulder's police chief, Mark Beckner, announced a crackdown on a 10-year-old tradition, the Naked Pumpkin Run, in which as many as 100 runners wearing only footwear and pumpkins over their heads streak through the city. The chief said participants would be arrested and charged as sex offenders, a threat that had teeth because a dozen runners were arrested last year.
In response, Mr Van Grack had about 100 pairs of orange briefs and thongs printed with the Hapa logo and the words "Run Responsibly''.
Restaurant representatives stationed along the streaking route on Halloween night planned to distribute them.
Only three runners took part, however,and they had already heeded the police and wore skimpy bottoms.
But while the runners were not exposed,the restaurant had plenty of exposure.The Wall Street Journal mentioned Hapa Sushi in a front-page article about the Naked Pumpkin Run hubbub.
The restaurant also was named on websites including The Huffington Post , not to mention local television and print coverage.
"We salute Hapa owner Mark Van Grack,who clearly knows when to serve things raw - and when to take cover,'' Mr Calhoun, the newspaper editor, wrote in a blog post on Westword.com.
Among the 14 states with medical marijuana laws, Colorado has experienced particularly brisk growth in the stores. From fewer than two dozen dispensaries in the state in January, there are now more than 60 just in Denver and nearby Boulder, and more than 10,000 registered medical marijuana patients statewide, according to reports in Westword , a Denver alternative weekly.When Westword announced recently that it would hire a registered patient to write reviews of the dispensaries (for a column called "Mile Highs and Lows''), it received 400 applications, according to Patricia Calhoun, its editor. And dispensary owners called ganjapreneurs in a recent headline in the weekly - are placing ads, accounting for nearly seven pages of advertising in a recent 92-page issue.
Now a business that has nothing to do with cannabis is aiming its ads at medical marijuana patients.A new print ad - by TDA Advertising and Design of Boulder - for Hapa Sushi, a restaurant chain based in Boulder, features a map of Denver and Boulder with 63 dots.Four dots are red, rep- resenting the four Hapa locations, and the remaining 59 are blue, representing medical marijuana dispensaries, some of which,it turns out, are just a stone's throw from the restaurants. The ad was to appear on Thursday in the Denver/Boulder edition of The Onion and in Westword later in the month.
"We're just kind of saying:'Look, these dispensaries exist and they're becoming part of our community, so let's welcome them in and have some fun','' said Mark Van Grack,owner of Hapa Sushi, a privately held,10-yearold chain. "If you're going to smoke pot,you're going to get the munchies, so come to Hapa to eat.''
As in most Hapa advertising over the years,something is conspicuously absent from these ads - food.
"Most restaurants show food, but then you're just one of a hundred,'' Mr Van Grack said.
"We think that our clientele appreciates smart ads that grab their attention. By creating ads that people want to talk about, that are creative and maybe controversial, then at least they are talking about our ads and Hapa is top of mind.''
Jonathan Schoenberg, the creative director at TDA, said of the Hapa ads:"We
try to keep these guys in a culturally
significant place.''
In 2007, when Barry Bonds hit his 755th home run to tie Hank Aaron's record (which Bonds soon broke), the agency created a Hapa print ad
that alluded to allegations of steroid use by Bonds.
"Congratulations Hank Aaron on 755
home runs,'' the ad declared.Smaller print below added:``Organic beef and chicken,no added steroids.'' An Associated Press wire story about the ad was reprinted in publications throughout the country, and some readers were not amused.
"I had some guy from San Francisco call me every day for a week because he was offended by the ad,'' said Mr Schoenberg. "But he lived in San Francisco, so we didn't care.''
Van Grack, Hapa's owner, recently came up with a marketing stunt on his own, with no help from his agency.
Last month, Boulder's police chief, Mark Beckner, announced a crackdown on a 10-year-old tradition, the Naked Pumpkin Run, in which as many as 100 runners wearing only footwear and pumpkins over their heads streak through the city. The chief said participants would be arrested and charged as sex offenders, a threat that had teeth because a dozen runners were arrested last year.
In response, Mr Van Grack had about 100 pairs of orange briefs and thongs printed with the Hapa logo and the words "Run Responsibly''.
Restaurant representatives stationed along the streaking route on Halloween night planned to distribute them.
Only three runners took part, however,and they had already heeded the police and wore skimpy bottoms.
But while the runners were not exposed,the restaurant had plenty of exposure.The Wall Street Journal mentioned Hapa Sushi in a front-page article about the Naked Pumpkin Run hubbub.
The restaurant also was named on websites including The Huffington Post , not to mention local television and print coverage.
"We salute Hapa owner Mark Van Grack,who clearly knows when to serve things raw - and when to take cover,'' Mr Calhoun, the newspaper editor, wrote in a blog post on Westword.com.
Wednesday, November 4, 2009
RBS, Lloyds in major shake-up
Britains two largest retail lenders have agreed to a massive shakeup of the UK banking sector that will see both sell hundreds of branches and key businesses to appease EU competition concerns over state aid.
Partly nationalised Royal Bank of Scotland and Lloyds Banking Group ended months of uncertainty yesterday,with Lloyds announcing it would drop out of a government-backed insurance scheme for bad debts by raising ฃ13.5 billion ($22.08 billion) in the worlds largest ever rights issue, as part of a ฃ21 billion capital raising plan.
The move leaves RBS, 70% stateowned, as the only bank joining the governments Asset Protection Scheme (APS) but RBS said it had secured more flexible terms than envisaged earlier this year that will allow it to exit the scheme within four years.
Both banks, however, were also hit by disposal orders to meet EU state aid rules, with RBS forced to sell chunks of its retail bank, RBS Insurance and to shrink its investment banking arm.
We do feel bruised by what weve had to go through, RBS chief executive Stephen Hester told reporters on a conference call.
We feel that the job (of turning around RBS) has been made more difficult for us but we understand the conflicting pressures.
Our job has been made more difficult by some of the aspects of the EU settlement but nevertheless we believe it is a doable job, he added.
The UK government said the disposals deal announced yesterday would increase competition in retail banking,bringing at least three new banks onto Britains high streets in the next four years.
The Exchequer said Lloyds and RBS would between them have to sell off businesses equating to 10% of the UK retail banking market. Only new entrants or small players in the UK market will be allowed to buy the assets, raising the key question of which buyers will step up.
Lloyds said it would sell 600 of its retail branches, with disposals including Lloyds TSB Scotland and the Cheltenham & Gloucester mortgage business branches, as well as its Intelligent Finance and the TSB brand.
RBS facing tougher EU sanctions including punitive sales imposed as late as this week will be forced to sell NatWest branches in Scotland, RBSbranded branches in England and Wales,along with RBS Insurance, Global Merchant Services and RBS Sempra Commodities.
Both banks will have up to five years to make the sales.
To avoid the APS, Lloyds said it would raise ฃ21 billion ($34.3 billion) via a ฃ13.5 billion rights issue and by swapping ฃ7.5 billion in existing debt into contingent capital, which will support the banks capital requirements.
The move will allow Lloyds to avoid the fees associated with the scheme and will cap the governments stake at 43% while also helping the bank get a better deal with Brussels.
RBS said its participation in the insurance scheme would be under better terms, confirming an expected payas-you-go arrangement that will allow it to pay annually, rather than via a single upfront fee of ฃ6.5 billion, making it easier for the bank to exit it altogether within four years.
It will now pay ฃ700 million a year for the first three years of membership and ฃ500 million a year thereafter. Under the deal, the extent of any losses borne by the bank rather than the government will rise to ฃ60 billion from ฃ42 billion previously, making it unlikely the bank will dip into the APS fund.
In return for sidestepping or limiting the impact of the APS the banks also agreed not to pay discretionary cash bonuses in relation to 2009 performance to any staff earning above ฃ39,000 while executive members of both boards agreed to defer all bonuses payments due for 2009 until 2012.
Partly nationalised Royal Bank of Scotland and Lloyds Banking Group ended months of uncertainty yesterday,with Lloyds announcing it would drop out of a government-backed insurance scheme for bad debts by raising ฃ13.5 billion ($22.08 billion) in the worlds largest ever rights issue, as part of a ฃ21 billion capital raising plan.
The move leaves RBS, 70% stateowned, as the only bank joining the governments Asset Protection Scheme (APS) but RBS said it had secured more flexible terms than envisaged earlier this year that will allow it to exit the scheme within four years.
Both banks, however, were also hit by disposal orders to meet EU state aid rules, with RBS forced to sell chunks of its retail bank, RBS Insurance and to shrink its investment banking arm.
We do feel bruised by what weve had to go through, RBS chief executive Stephen Hester told reporters on a conference call.
We feel that the job (of turning around RBS) has been made more difficult for us but we understand the conflicting pressures.
Our job has been made more difficult by some of the aspects of the EU settlement but nevertheless we believe it is a doable job, he added.
The UK government said the disposals deal announced yesterday would increase competition in retail banking,bringing at least three new banks onto Britains high streets in the next four years.
The Exchequer said Lloyds and RBS would between them have to sell off businesses equating to 10% of the UK retail banking market. Only new entrants or small players in the UK market will be allowed to buy the assets, raising the key question of which buyers will step up.
Lloyds said it would sell 600 of its retail branches, with disposals including Lloyds TSB Scotland and the Cheltenham & Gloucester mortgage business branches, as well as its Intelligent Finance and the TSB brand.
RBS facing tougher EU sanctions including punitive sales imposed as late as this week will be forced to sell NatWest branches in Scotland, RBSbranded branches in England and Wales,along with RBS Insurance, Global Merchant Services and RBS Sempra Commodities.
Both banks will have up to five years to make the sales.
To avoid the APS, Lloyds said it would raise ฃ21 billion ($34.3 billion) via a ฃ13.5 billion rights issue and by swapping ฃ7.5 billion in existing debt into contingent capital, which will support the banks capital requirements.
The move will allow Lloyds to avoid the fees associated with the scheme and will cap the governments stake at 43% while also helping the bank get a better deal with Brussels.
RBS said its participation in the insurance scheme would be under better terms, confirming an expected payas-you-go arrangement that will allow it to pay annually, rather than via a single upfront fee of ฃ6.5 billion, making it easier for the bank to exit it altogether within four years.
It will now pay ฃ700 million a year for the first three years of membership and ฃ500 million a year thereafter. Under the deal, the extent of any losses borne by the bank rather than the government will rise to ฃ60 billion from ฃ42 billion previously, making it unlikely the bank will dip into the APS fund.
In return for sidestepping or limiting the impact of the APS the banks also agreed not to pay discretionary cash bonuses in relation to 2009 performance to any staff earning above ฃ39,000 while executive members of both boards agreed to defer all bonuses payments due for 2009 until 2012.
Wednesday, October 28, 2009
Mail-order company goes bust
The venerable German mail-order company Quelle is shutting down more than 80 years after revolutionising the country's retail landscape, having missed customers' move to online shopping.
The unit of insolvent German retailer Arcandor failed to find new investors and would be closed down, Arcandor's insolvency administrator Klaus Hubert Goerg said on Tuesday.
A Quelle employee who took part in a staff meeting at the company's headquarters in Nuremberg said October's salaries would still be paid but beyond that nothing was certain.
"It's over, crying doesn't help," Quelle employee Marianne Thieg told Reuters.A colleague added:"Quelle is dead."
At least half of the 10,500 employees of Arcandor's Primondo unit, which Quelle is part of, could lose their jobs,but no official figures have yet been given.
Marco Atzberger, retail expert at EHI retail institute, said Quelle's downfall was a result of the company's own problems rather than an industry-wide malfunction."Quelle is a tragic story,because the mail order business in general works quite well. They failed to integrate the online business properly and relied too strongly on the catalogue business," he said.
The Quelle catalogue used to be a common feature in Germany's letter boxes and fashion designer Karl Lagerfeld even offered his collection "KL by Karl Lagerfeld" in the autumn/winter 1996-97 catalogue.
Quelle was founded by Gustav Schickedanz in 1927, naming it after his business idea to sell products directly to the customers right from the source, or "Quelle," in German.
But the emergence of the Internet took shoppers online, rapidly boosting sales of online retailers like Amazon.com Inc and eBay Inc.
"While the catalogue is not obsolete,it is not the main sales driver either, any more," EHI's Atzberger said.
The German E-Commerce and Distance Selling Trade Association (bvh)expects online shopping will for the first time this year make up more than half of the overall sales in the mail-order industry, which it estimates at 29.1 billion ($43.6 billion) for 2009.
The unit of insolvent German retailer Arcandor failed to find new investors and would be closed down, Arcandor's insolvency administrator Klaus Hubert Goerg said on Tuesday.
A Quelle employee who took part in a staff meeting at the company's headquarters in Nuremberg said October's salaries would still be paid but beyond that nothing was certain.
"It's over, crying doesn't help," Quelle employee Marianne Thieg told Reuters.A colleague added:"Quelle is dead."
At least half of the 10,500 employees of Arcandor's Primondo unit, which Quelle is part of, could lose their jobs,but no official figures have yet been given.
Marco Atzberger, retail expert at EHI retail institute, said Quelle's downfall was a result of the company's own problems rather than an industry-wide malfunction."Quelle is a tragic story,because the mail order business in general works quite well. They failed to integrate the online business properly and relied too strongly on the catalogue business," he said.
The Quelle catalogue used to be a common feature in Germany's letter boxes and fashion designer Karl Lagerfeld even offered his collection "KL by Karl Lagerfeld" in the autumn/winter 1996-97 catalogue.
Quelle was founded by Gustav Schickedanz in 1927, naming it after his business idea to sell products directly to the customers right from the source, or "Quelle," in German.
But the emergence of the Internet took shoppers online, rapidly boosting sales of online retailers like Amazon.com Inc and eBay Inc.
"While the catalogue is not obsolete,it is not the main sales driver either, any more," EHI's Atzberger said.
The German E-Commerce and Distance Selling Trade Association (bvh)expects online shopping will for the first time this year make up more than half of the overall sales in the mail-order industry, which it estimates at 29.1 billion ($43.6 billion) for 2009.
Gold bars and coins on sale at Harrods
The London luxury goods department store Harrods is moving into the precious metals market with the launch of a service to sell investmentgrade gold bullion bars and coins to customers.
Malcolm McLean, general manager of Harrods Bank, told Reuters on Thursday that the company saw a gap in the market for a well-known retailer to enter the increasingly high-profile gold market.
"We have been very conscious of the fact that there has been an ever increasing amount of interest in the gold market,and in buying investment gold," he said.
"We became very conscious that there is no well-recognised name out there which the general public can turn to and say, I know that name, I trust it, I want to buy from them.
"That is not to say there are not reputable dealers out there - we know there are," McLean said.
"But they don't carry the brand that we do."
Since Monday, Harrods has been selling Swiss-sourced investment grade bars and coins including sovereigns, South African Krugerrands and American Eagles, from the Harrods Bank premises on London's upscale Brompton Road.
Harrods would not be drawn on the sales volumes seen by the store so far,but McLean said feedback for the service had been positive.
"We are very much looking to the Harrods customer, and the customers of Harrods bank itself," he said."But we are open to the general public."
Prices vary according to the spot price of gold, the amount of bullion ordered,and the type of product selected. Internationally traded spot gold prices rose to a record high of $1,070.40 an ounce on Wednesday.
Around midday on Thursday, a oneounce Kruggerrand coin would have retailed at just under ฃ740, around a 14% premium above the gold spot price at the time.
Premiums on gold investment products in Europe are typically between 5-20%, depending on the spot price,supply and demand conditions, and volumes.
The store offers a secure safety deposit service, with its smallest box available for ฃ235 a year and capable of holding the largest investment product Harrods offers: the 12.5 kg bar.
"The customer can take the gold away with them if they wish, or can arrange for it to be delivered to wherever they choose," McLean said.
Investment in gold coins and bars rose sharply in late 2008 and early this year as the financial crisis boosted the appeal of physical gold as a safe store of value for consumers.
According to the World Gold Council,worldwide net retail investment in gold,which includes coin and bar buying,rose 22% in the first half of 2009 from the same period of the previous year to 301 tonnes.
Malcolm McLean, general manager of Harrods Bank, told Reuters on Thursday that the company saw a gap in the market for a well-known retailer to enter the increasingly high-profile gold market.
"We have been very conscious of the fact that there has been an ever increasing amount of interest in the gold market,and in buying investment gold," he said.
"We became very conscious that there is no well-recognised name out there which the general public can turn to and say, I know that name, I trust it, I want to buy from them.
"That is not to say there are not reputable dealers out there - we know there are," McLean said.
"But they don't carry the brand that we do."
Since Monday, Harrods has been selling Swiss-sourced investment grade bars and coins including sovereigns, South African Krugerrands and American Eagles, from the Harrods Bank premises on London's upscale Brompton Road.
Harrods would not be drawn on the sales volumes seen by the store so far,but McLean said feedback for the service had been positive.
"We are very much looking to the Harrods customer, and the customers of Harrods bank itself," he said."But we are open to the general public."
Prices vary according to the spot price of gold, the amount of bullion ordered,and the type of product selected. Internationally traded spot gold prices rose to a record high of $1,070.40 an ounce on Wednesday.
Around midday on Thursday, a oneounce Kruggerrand coin would have retailed at just under ฃ740, around a 14% premium above the gold spot price at the time.
Premiums on gold investment products in Europe are typically between 5-20%, depending on the spot price,supply and demand conditions, and volumes.
The store offers a secure safety deposit service, with its smallest box available for ฃ235 a year and capable of holding the largest investment product Harrods offers: the 12.5 kg bar.
"The customer can take the gold away with them if they wish, or can arrange for it to be delivered to wherever they choose," McLean said.
Investment in gold coins and bars rose sharply in late 2008 and early this year as the financial crisis boosted the appeal of physical gold as a safe store of value for consumers.
According to the World Gold Council,worldwide net retail investment in gold,which includes coin and bar buying,rose 22% in the first half of 2009 from the same period of the previous year to 301 tonnes.
MAKERS OF BUILDING MATERIALS "BIGGEST GAINERS"
The building material, steel, downstream petrochemicals, auto parts and discountstore sectors will benfit from the government's second economic stimulus package, according to a research paper by SCB Securities.
Firms making building materials are expected to reap the biggest gains from the Thai Khemkhaeng (Invest for Strength) scheme phase I, worth Bt200 billion.
About Bt59 billion of the Bt200billion package will be used to develop small reservoirs and repair irrigation systems, and PVC manufacturers such as Thai Plastic and Chemicals and Vinythai will enjoy the benefits.
The brokerage said another Bt35 billion would be allocated for building and repairing roads, boosting asphalt demand and benefiting Tipco Asphalt.
Tata Steel (Thailand) and G Steel will also be beneficiaries from the stimulus package, as steel bar and wire will be major raw materials in construction works related to irrigation systems, hospitals and electric trains, SCB Securities said.
However, the brokerage is nor sure whether Sahaviriya Steel will also gain, as PVCpipe prices and maintenance costs are lower than those for steel pipelines.
Cement-makers Siam Cement, Siam City Cement and TPI Polene are other expected gainers in the buildingmaterials sector.
The brokerage estimates that the 10-12 electricrail routes will need 9 million10 million tonnes of cement.
"It is too early to calculate cement demand for all the routes, but the Purple, Red and Blue lines alone will create 2.53 million tonnes of cement consumption over their fouryear construction periods," the paper said.
For the consumption sector, Big C Supercentre and Siam Makro will be winners from the Thai Khemkhaeng programme, as about Bt20 billion will be allocated to village funds.
From the previous village funds' budget in fiscal years 20042005, Big C and Makro reported sales growth in existing branches at 3 per cent and 6 per cent, respectively. This is well above Big C's current performance of minus 2.5 per cent to positive growth of 3 per cent, and Makro's growth of 13 per cent.
Makro tends to receive greater benefits from such schemes than Big C as its products are more related to economic activities.
This said, SCB Securities recommends "buy" on Big C with a 12month target price of Bt55 based on the dividend discount model, and "sell" on Makro with a 12month target of Bt67.
However, as both firms will benefit from the government's economic stimulus measures, the brokerage will soon review its assumptions.
Given that the package will bolster economic activities in rural areas, the demand for pickups and tractors will increase, making Somboon Advanced Technology a winner.
The company is Thailand's largest axle-shaft manufacturer for pickups with a market share of 80 per cent. Moreover, it supplies shafts to Siam Kubota, the country's largest tractor producer.
The brokerage recommends "buy" for the stock, with a 12month target price of Bt13.
The government's plan to lower the ratio of students to computers from 38:1 to 20:1 will create demand for 200,000 PCs. IT City, the computer peripherals and equipment distributor, will therefore stand to gain.
For the consumption sector, Big C Supercentre and Siam Makro will be winners from the Thai Khemkhaeng programme, as about Bt20 billion will be allocated to village funds.
Firms making building materials are expected to reap the biggest gains from the Thai Khemkhaeng (Invest for Strength) scheme phase I, worth Bt200 billion.
About Bt59 billion of the Bt200billion package will be used to develop small reservoirs and repair irrigation systems, and PVC manufacturers such as Thai Plastic and Chemicals and Vinythai will enjoy the benefits.
The brokerage said another Bt35 billion would be allocated for building and repairing roads, boosting asphalt demand and benefiting Tipco Asphalt.
Tata Steel (Thailand) and G Steel will also be beneficiaries from the stimulus package, as steel bar and wire will be major raw materials in construction works related to irrigation systems, hospitals and electric trains, SCB Securities said.
However, the brokerage is nor sure whether Sahaviriya Steel will also gain, as PVCpipe prices and maintenance costs are lower than those for steel pipelines.
Cement-makers Siam Cement, Siam City Cement and TPI Polene are other expected gainers in the buildingmaterials sector.
The brokerage estimates that the 10-12 electricrail routes will need 9 million10 million tonnes of cement.
"It is too early to calculate cement demand for all the routes, but the Purple, Red and Blue lines alone will create 2.53 million tonnes of cement consumption over their fouryear construction periods," the paper said.
For the consumption sector, Big C Supercentre and Siam Makro will be winners from the Thai Khemkhaeng programme, as about Bt20 billion will be allocated to village funds.
From the previous village funds' budget in fiscal years 20042005, Big C and Makro reported sales growth in existing branches at 3 per cent and 6 per cent, respectively. This is well above Big C's current performance of minus 2.5 per cent to positive growth of 3 per cent, and Makro's growth of 13 per cent.
Makro tends to receive greater benefits from such schemes than Big C as its products are more related to economic activities.
This said, SCB Securities recommends "buy" on Big C with a 12month target price of Bt55 based on the dividend discount model, and "sell" on Makro with a 12month target of Bt67.
However, as both firms will benefit from the government's economic stimulus measures, the brokerage will soon review its assumptions.
Given that the package will bolster economic activities in rural areas, the demand for pickups and tractors will increase, making Somboon Advanced Technology a winner.
The company is Thailand's largest axle-shaft manufacturer for pickups with a market share of 80 per cent. Moreover, it supplies shafts to Siam Kubota, the country's largest tractor producer.
The brokerage recommends "buy" for the stock, with a 12month target price of Bt13.
The government's plan to lower the ratio of students to computers from 38:1 to 20:1 will create demand for 200,000 PCs. IT City, the computer peripherals and equipment distributor, will therefore stand to gain.
For the consumption sector, Big C Supercentre and Siam Makro will be winners from the Thai Khemkhaeng programme, as about Bt20 billion will be allocated to village funds.
Tuesday, October 20, 2009
Jumbo wins battle for Super de Boer
Dutch supermarkets group Jumbo won the battle for peer Super De Boer yesterday after raising its original offer, valuing the company at
552.5 million ($822.3 million) and knocking out a rival bid.
Super de Boer said it had agreed to the Jumbo buyout offer after becoming the hot prize in the consolidation of Dutch supermarkets. The original bid from Jumbo was followed by an intended offer from Sperwer, while two other supermarkets joined the battle, separately backing the rival offers.
But the bid from Jumbo eventually won out.
"We are convinced that this is a very attractive transaction for all of our stakeholders, including our employees, franchisees, shareholders and, last but not least,our customers," Super de Boer's chief executive Jan Brouwer said in statement.
The revised offer from Jumbo comes at 4.82 per share. That topped Sperwer's previous 4.50/share offer. Sperwer said it would drop its bid.
"Jumbo's improved offer for Super de Boer will not be surpassed by Sperwer and we believe that it is unlikely to be surpassed by another suitor," SNS Securities analyst Richard Withagen said.
The deal creates a supermarket chain store which will increase competition for market leader Ahold, which owns the Albert Heijn stores and has more than a 30% market share.
Jumbo had agreed to sell 80 Super De Boer stores to rival Schuitema, which operates the C1000 brand, if its bid succeeded, while Sperwer had planned to sell about 40 Super De Boer stores to Ahold if it was successful.
Super de Boer is 57% owned by French peer Casino.
Casino said in a separate statement that the price valued the business at 13.9 times estimated EBITDA and generates a gross capital gain of some 60 million for Casino.
It will also allow Casino to reduce its debt by around 400 million.
552.5 million ($822.3 million) and knocking out a rival bid.
Super de Boer said it had agreed to the Jumbo buyout offer after becoming the hot prize in the consolidation of Dutch supermarkets. The original bid from Jumbo was followed by an intended offer from Sperwer, while two other supermarkets joined the battle, separately backing the rival offers.
But the bid from Jumbo eventually won out.
"We are convinced that this is a very attractive transaction for all of our stakeholders, including our employees, franchisees, shareholders and, last but not least,our customers," Super de Boer's chief executive Jan Brouwer said in statement.
The revised offer from Jumbo comes at 4.82 per share. That topped Sperwer's previous 4.50/share offer. Sperwer said it would drop its bid.
"Jumbo's improved offer for Super de Boer will not be surpassed by Sperwer and we believe that it is unlikely to be surpassed by another suitor," SNS Securities analyst Richard Withagen said.
The deal creates a supermarket chain store which will increase competition for market leader Ahold, which owns the Albert Heijn stores and has more than a 30% market share.
Jumbo had agreed to sell 80 Super De Boer stores to rival Schuitema, which operates the C1000 brand, if its bid succeeded, while Sperwer had planned to sell about 40 Super De Boer stores to Ahold if it was successful.
Super de Boer is 57% owned by French peer Casino.
Casino said in a separate statement that the price valued the business at 13.9 times estimated EBITDA and generates a gross capital gain of some 60 million for Casino.
It will also allow Casino to reduce its debt by around 400 million.
Wednesday, October 14, 2009
Consumers to dig deeper for Vegetarian Festival fare
Vegetarians will shoulder a heavier burden during the Vegetarian Festival, due to higher retail prices for ready-to-eat je foods, a Commerce Ministry survey of Yaowarat Road shows. The festival will run from Sunday until October 26.
However, retail prices of fresh vegetables and other foods should remain unchanged, due to sluggish economic growth affecting consumers' purchasing power.
Retail prices of instant and ready-to-eat vegetarian foods will cost a minimum of Bt35 a pack, while normal ready-to-eat foods run Bt25 to Bt30 a pack.
One food retailer in Yaowarat Market said ready-to-eat vegetarian foods were normally more expensive than normal food. However, retail prices for them seem to have climbed despite no corresponding increase in those for raw materials. An earlier survey by the University of the Thai Chamber of Commerce showed changing lifestyles had prompted consumers, particularly vegetarians, to choose ready-to-eat, canned and instant foods over fresh foods.
Sirirat, a Chinese-Thai who plans to eat vegetarian during the festival, urged the government to control retail prices of ready-to-eat foods, because these were necessary for working consumers.
"Consumers prefer ready-to-eat foods. Raw materials have not gone up much this year, so ready-to-eat foods should not be too expensive," she said. However, a ministry survey found prices of some fresh vegetables and other raw materials had in fact dropped 10-20 per cent year on year.
Commerce Ministry permanent secretary Yanyong Phuangrach confirmed retail prices of some raw materials were now lower than during last year's festival.
For instance, non-meat protein is quoted at Bt35 to Bt40 for a 400-gram pack, against Bt40 last year. Vegetarian fish maw is now Bt160 to Bt200 a kilogram, down from Bt200 to Bt300 last year. Soba noodles remain unchanged at Bt55 a kilogram.
Most fresh-vegetable prices cost the same as last year or have increased slightly, by about Bt5 a kilogram.
To ensure consumers do not suffer from higher food prices, the ministry will dispatch inspection teams to fresh markets nationwide in a bid to prevent unfair price hikes during this year's vegetarian festival, Yanyong said.
However, retail prices of fresh vegetables and other foods should remain unchanged, due to sluggish economic growth affecting consumers' purchasing power.
Retail prices of instant and ready-to-eat vegetarian foods will cost a minimum of Bt35 a pack, while normal ready-to-eat foods run Bt25 to Bt30 a pack.
One food retailer in Yaowarat Market said ready-to-eat vegetarian foods were normally more expensive than normal food. However, retail prices for them seem to have climbed despite no corresponding increase in those for raw materials. An earlier survey by the University of the Thai Chamber of Commerce showed changing lifestyles had prompted consumers, particularly vegetarians, to choose ready-to-eat, canned and instant foods over fresh foods.
Sirirat, a Chinese-Thai who plans to eat vegetarian during the festival, urged the government to control retail prices of ready-to-eat foods, because these were necessary for working consumers.
"Consumers prefer ready-to-eat foods. Raw materials have not gone up much this year, so ready-to-eat foods should not be too expensive," she said. However, a ministry survey found prices of some fresh vegetables and other raw materials had in fact dropped 10-20 per cent year on year.
Commerce Ministry permanent secretary Yanyong Phuangrach confirmed retail prices of some raw materials were now lower than during last year's festival.
For instance, non-meat protein is quoted at Bt35 to Bt40 for a 400-gram pack, against Bt40 last year. Vegetarian fish maw is now Bt160 to Bt200 a kilogram, down from Bt200 to Bt300 last year. Soba noodles remain unchanged at Bt55 a kilogram.
Most fresh-vegetable prices cost the same as last year or have increased slightly, by about Bt5 a kilogram.
To ensure consumers do not suffer from higher food prices, the ministry will dispatch inspection teams to fresh markets nationwide in a bid to prevent unfair price hikes during this year's vegetarian festival, Yanyong said.
Tuesday, October 13, 2009
Carrefour launches mini format
French hypermarket chain Carrefour is launching a new retail format to bolster its position in the Thai market.
It opened its first mini-supermarket in Bangkok's Pracha Chuen area last Saturday.
CenCar Co, the local Carrefour operator, opened the "Carrefour City"store at Urban Square, a new community mall developed by Chananin Co,located behind Dhurakij Pundit University.
The new-format 300-square-metre retail outlet is double the size of a Tesco-Lotus Express store, its direct competitor. Carrefour City opens daily from 7am-11pm.
The store provides both ready-toeat meals and other convenience products for breakfast and lunch, as well as groceries, frozen foods, drinks and household products.
The French retail giant Carrefour Group launched the Carrefour City format in France early this year, promoting it as a new convenience store concept which capitalises on the Carrefour brand.
Carrefour has operated in Thailand for 12 years but the operator has focused exclusively on hypermarkets. Three Carrefour hypermarket formats are available in the Thai market: the standard format with 6,000 sq m of retail space; the compact format with 4,000 sq m; and the mini format with 2,000 sq m. Arch-rival Tesco Lotus operates six retail formats locally. France-based Casino offers three formats - Big C Supercenter, Mini Big C and Pure by Big C.
Launching the new store format confirms that Carrefour will continue its Thai operations despite rumours that it wanted to pull out from growth markets, especially in Asia.
Lars Olofsson, CEO of Carrefour Group, said its strategy approved by the board in March remained unchanged as the group's geographic priorities are France, other European countries and growth markets, particularly Brazil, India and China.
It opened its first mini-supermarket in Bangkok's Pracha Chuen area last Saturday.
CenCar Co, the local Carrefour operator, opened the "Carrefour City"store at Urban Square, a new community mall developed by Chananin Co,located behind Dhurakij Pundit University.
The new-format 300-square-metre retail outlet is double the size of a Tesco-Lotus Express store, its direct competitor. Carrefour City opens daily from 7am-11pm.
The store provides both ready-toeat meals and other convenience products for breakfast and lunch, as well as groceries, frozen foods, drinks and household products.
The French retail giant Carrefour Group launched the Carrefour City format in France early this year, promoting it as a new convenience store concept which capitalises on the Carrefour brand.
Carrefour has operated in Thailand for 12 years but the operator has focused exclusively on hypermarkets. Three Carrefour hypermarket formats are available in the Thai market: the standard format with 6,000 sq m of retail space; the compact format with 4,000 sq m; and the mini format with 2,000 sq m. Arch-rival Tesco Lotus operates six retail formats locally. France-based Casino offers three formats - Big C Supercenter, Mini Big C and Pure by Big C.
Launching the new store format confirms that Carrefour will continue its Thai operations despite rumours that it wanted to pull out from growth markets, especially in Asia.
Lars Olofsson, CEO of Carrefour Group, said its strategy approved by the board in March remained unchanged as the group's geographic priorities are France, other European countries and growth markets, particularly Brazil, India and China.
Sunday, October 11, 2009
Siam Makro Wins Best Idea Award in the Business Awards 2009
Siam Makro Wins Best Idea Award in the Business Awards 2009
ceremony Presented by the Netherlands-Thai Chamber of Commerce and Belgian-Luxembourg/Thai Chamber of Commerce.
Siam Makro Public Company Limited has been slected by the Netherlands-Thai Chamber jof Commerce and Belgian-Luxembourg/Thai Chamber of Commerce as the winner of the Best Idea Award in the Business Awards 2009 for its Makro Retailer Alliance Project. The Makro Retailer Alliance Project aims to support the traditional trade in Thailand for continued growth and succcess.
The Business Awards of Netherlands-Thai Chamber of Commerce and Belgian-Luxembourg/Thai Chamber of Commerce were established in 1998 to pay homage to sme of the finest companies for the way in which they excel in business and for their contribution to Thai society. The awards have 8 categories: Best Muyltinational Company, Best Financial Services Company, Best SME Company, Best Idea Award, Best Product Innovation, Best Exporter, Best Exporter SME Company and Special Export Encouragement Award Thai-Benelux Relations.
Siam Makro Public Company Limited has been operating wholesale cash and carry trade centers in Thailand for 20 years. The company is very proud to receive this Award sinc eMakro has demonstrated its commitment to help small retailers to compete effectively by launching the Makro Retailer Alliance Project in 2007. The project has been supported from government institutes consisted of the Department of Business Development of the Ministry of Commerce and 12 business partners to share their knowledge and experience to the small retailers. Lately, Makro Retailer Allience Projec tha scooperated with 33 universities in Thailand to set up 'Retailer Development from students to local community Project'. Makro staffs are sent to these universities to teach students a course in Effective Retail Shop Management. Students then support the small shops. Recently, the company held the "2nd Makro Retailer Expo" during September 11-13, 2009 to provide knowledge on retailing business with 50,000 attendees.
Other winners of the awards include: Chuchawal Royal Haskoning, ING Life Ltd., Thai Garden Resort, The Audhya Insurance PCL.,B. Foods Product International Co.,Ltd Tahi Orchids Co.,Ltd. and Heuschen & Schrouff Oriental Fools Trading B.V.
Mr.Tjaco van den hout, Ambassador of the Kingdom of the Netherlands, delivers an opening speech.
Finance Minister korn Jatikavanich delivers a speech.
Mrs. Suchada Ithijarukul, Managing Director of Siam Makro Public Company Limited, receives the Best Idea Award for Makro Retailer Alliance Project.
Mr.Tjaco van den Hout, Ambassador of the Kingdom of the Netherlands, confers the Royal decoration on Dr.Pisit Lee-Artham(far right).
ceremony Presented by the Netherlands-Thai Chamber of Commerce and Belgian-Luxembourg/Thai Chamber of Commerce.
Siam Makro Public Company Limited has been slected by the Netherlands-Thai Chamber jof Commerce and Belgian-Luxembourg/Thai Chamber of Commerce as the winner of the Best Idea Award in the Business Awards 2009 for its Makro Retailer Alliance Project. The Makro Retailer Alliance Project aims to support the traditional trade in Thailand for continued growth and succcess.
The Business Awards of Netherlands-Thai Chamber of Commerce and Belgian-Luxembourg/Thai Chamber of Commerce were established in 1998 to pay homage to sme of the finest companies for the way in which they excel in business and for their contribution to Thai society. The awards have 8 categories: Best Muyltinational Company, Best Financial Services Company, Best SME Company, Best Idea Award, Best Product Innovation, Best Exporter, Best Exporter SME Company and Special Export Encouragement Award Thai-Benelux Relations.
Siam Makro Public Company Limited has been operating wholesale cash and carry trade centers in Thailand for 20 years. The company is very proud to receive this Award sinc eMakro has demonstrated its commitment to help small retailers to compete effectively by launching the Makro Retailer Alliance Project in 2007. The project has been supported from government institutes consisted of the Department of Business Development of the Ministry of Commerce and 12 business partners to share their knowledge and experience to the small retailers. Lately, Makro Retailer Allience Projec tha scooperated with 33 universities in Thailand to set up 'Retailer Development from students to local community Project'. Makro staffs are sent to these universities to teach students a course in Effective Retail Shop Management. Students then support the small shops. Recently, the company held the "2nd Makro Retailer Expo" during September 11-13, 2009 to provide knowledge on retailing business with 50,000 attendees.
Other winners of the awards include: Chuchawal Royal Haskoning, ING Life Ltd., Thai Garden Resort, The Audhya Insurance PCL.,B. Foods Product International Co.,Ltd Tahi Orchids Co.,Ltd. and Heuschen & Schrouff Oriental Fools Trading B.V.
Mr.Tjaco van den hout, Ambassador of the Kingdom of the Netherlands, delivers an opening speech.
Finance Minister korn Jatikavanich delivers a speech.
Mrs. Suchada Ithijarukul, Managing Director of Siam Makro Public Company Limited, receives the Best Idea Award for Makro Retailer Alliance Project.
Mr.Tjaco van den Hout, Ambassador of the Kingdom of the Netherlands, confers the Royal decoration on Dr.Pisit Lee-Artham(far right).
Carrefour planning to get stores,public on the same recycled page
Carrefour will continue with its aim to promote energy conservation in its stores and to raise customer awareness on the action they can take to lower household consumption, said Paul Rowsome, environmental manager of the hypermarket chain.
The group even went a step further in its commitment to reducing energy consumption from the previous target of 20% to 30% per square metre of sales area by 2020 compared to 2004.
According to its sustainability report,Carrefour has specific plans to improve energy efficiency by reducing waste,water and paper consumption and optimising recycling activities. Carrefour branches have been told to report their energy consumption rates every quarter,said Mr Rowsome.
Based on the results of a Life Cycle Analysis carried out on its shopping catalogues, Carrefour hypermarkets and supermarkets in France decided to reduce the weight of the paper in order to reduce the impact of their publications on the environment. By reducing the weight of its commercial publications,Carrefour saved 25,000 tonnes of paper last year alone compared to 2005.
This is the equivalent of the annual release of carbon dioxide emissions by as many as 19,000 cars.
Also, Carrefour hypermarkets and supermarkets in France saved 10% on their total paper consumption in 2008 compared to 2005.
Carbon dioxide emissions were thus reduced by more than 22,500 tonnes,which is the equivalent of the annual emissions of more than 17,000 cars.
Carrefour also favours the use of recycled fibres or those from sources with sustainable forest certification.
Its aim is to have 80% of publications printed on certified or recycled paper by the end of this year and 100% by the end of next year. This year, the group is going to enforce stricter traceability requirements promoting paper made from recycled wood fibres or from forests under certified management.
Carrefour is also making efforts to reduce the volume of store waste by replacing wooden boxes and crates used for the shipping of merchandise by reusable plastic containers.
Carrefour has also been making effortsto optimise the weight of its own-brand product packaging. This has enabled the group to save on more than 13,000 tonnes of packaging for specific types of products throughout its entire range.
After Taiwan, Belgium and France,Carrefour ended the distribution of free disposable plastic bags in hypermarkets in China and Poland last year.
All stores now offer their customers alternative options to the disposable plastic check-out bags.
The group even went a step further in its commitment to reducing energy consumption from the previous target of 20% to 30% per square metre of sales area by 2020 compared to 2004.
According to its sustainability report,Carrefour has specific plans to improve energy efficiency by reducing waste,water and paper consumption and optimising recycling activities. Carrefour branches have been told to report their energy consumption rates every quarter,said Mr Rowsome.
Based on the results of a Life Cycle Analysis carried out on its shopping catalogues, Carrefour hypermarkets and supermarkets in France decided to reduce the weight of the paper in order to reduce the impact of their publications on the environment. By reducing the weight of its commercial publications,Carrefour saved 25,000 tonnes of paper last year alone compared to 2005.
This is the equivalent of the annual release of carbon dioxide emissions by as many as 19,000 cars.
Also, Carrefour hypermarkets and supermarkets in France saved 10% on their total paper consumption in 2008 compared to 2005.
Carbon dioxide emissions were thus reduced by more than 22,500 tonnes,which is the equivalent of the annual emissions of more than 17,000 cars.
Carrefour also favours the use of recycled fibres or those from sources with sustainable forest certification.
Its aim is to have 80% of publications printed on certified or recycled paper by the end of this year and 100% by the end of next year. This year, the group is going to enforce stricter traceability requirements promoting paper made from recycled wood fibres or from forests under certified management.
Carrefour is also making efforts to reduce the volume of store waste by replacing wooden boxes and crates used for the shipping of merchandise by reusable plastic containers.
Carrefour has also been making effortsto optimise the weight of its own-brand product packaging. This has enabled the group to save on more than 13,000 tonnes of packaging for specific types of products throughout its entire range.
After Taiwan, Belgium and France,Carrefour ended the distribution of free disposable plastic bags in hypermarkets in China and Poland last year.
All stores now offer their customers alternative options to the disposable plastic check-out bags.
Wednesday, October 7, 2009
CPF foresees 5-10%sales growth next year
Charoen Pokphand Foods (CPF) forecasts its sales will grow by 5-10% next year with operating profits stabilising in light of a business restructuring to focus more on ready-to-eat food and animal feed.
"We are still upbeat about maintaining the growth momentum next year, with sales growth of about 5-10%on par with this year's growth," said Adirek Sripratak, president and CEO of the SET-listed flagship of Charoen Pokphand Group (CP), the country's agribusiness conglomerate.
"We also project more stabilised profit in the year to come, as we have restructured our business model from heavily depending on commodities, particularly meat for which prices are volatile, to [ready-to-eat] food and animal feeds and CP brand development."
He said CPF expected a record profit this year as overseas sales and ready-to-eat food under the CP brand increase and raw material costs have been lower than last year.
Performance has also been helped by aggressive distribution unit expansion, mainly through CP Fresh Mart and Five Star Chicken.
Currently, there are more than 500 CP Fresh Mart outlets operating, with the figure expected to expand to at least 2,000 in the future.
CPF's sales are projected to expand by 5% to 10% this year from 156.23 billion baht in 2008.
According to Mr Adirek, the company expected profits in the third quarter would be higher than in previous quarters, with profit in the final quarter probably easing as production of aquatic business will by nature drop because of cold weather.
CPF earned a record-high net profit in the second quarter of 3.19 billion baht, a year-on-year gain of 224% and up from 770.5 million in the first quarter.Sales for the second quarter increased nearly 4% to 40.6 billion baht. Six-month net profit rose to nearly 4 billion baht on sales of 75.4 billion.
Mr Adirek said earlier that CPF was aiming for a net profit of about 8 billion baht this year, from 3.12 billion in 2008.
His projection matched research by Kim Eng Securities which has recently revised up CPF's 2009 and 2010 earnings forecasts by 26% and 16% to 8.04 billion and 5.71 billion baht respectively, to reflect higher margins fuelled by low raw material costs and strong growth of the high-margin food business.
The brokerage expects CPF's results in the third quarter should increase year-on-year and even better the second-quarter result, supported by lower costs of materials, favourable meat prices, the peak export season and the ongoing growth of overseas operations.
Raw material prices, especially for corn in the harvest season, have slipped to around 6.30 baht a kilogramme from 10 baht in the third quarter in 2008.Domestic meat prices remain favourable at broilers and eggs remain at favourable levels of 56 baht a kilogramme for swine,41 baht/kg for broilers and 2.60 baht per egg.
CPF shares closed down 10 satang yesterday on the Stock Exchange of Thailand at 8.70 baht, in trade worth 401.49 million baht.
"We are still upbeat about maintaining the growth momentum next year, with sales growth of about 5-10%on par with this year's growth," said Adirek Sripratak, president and CEO of the SET-listed flagship of Charoen Pokphand Group (CP), the country's agribusiness conglomerate.
"We also project more stabilised profit in the year to come, as we have restructured our business model from heavily depending on commodities, particularly meat for which prices are volatile, to [ready-to-eat] food and animal feeds and CP brand development."
He said CPF expected a record profit this year as overseas sales and ready-to-eat food under the CP brand increase and raw material costs have been lower than last year.
Performance has also been helped by aggressive distribution unit expansion, mainly through CP Fresh Mart and Five Star Chicken.
Currently, there are more than 500 CP Fresh Mart outlets operating, with the figure expected to expand to at least 2,000 in the future.
CPF's sales are projected to expand by 5% to 10% this year from 156.23 billion baht in 2008.
According to Mr Adirek, the company expected profits in the third quarter would be higher than in previous quarters, with profit in the final quarter probably easing as production of aquatic business will by nature drop because of cold weather.
CPF earned a record-high net profit in the second quarter of 3.19 billion baht, a year-on-year gain of 224% and up from 770.5 million in the first quarter.Sales for the second quarter increased nearly 4% to 40.6 billion baht. Six-month net profit rose to nearly 4 billion baht on sales of 75.4 billion.
Mr Adirek said earlier that CPF was aiming for a net profit of about 8 billion baht this year, from 3.12 billion in 2008.
His projection matched research by Kim Eng Securities which has recently revised up CPF's 2009 and 2010 earnings forecasts by 26% and 16% to 8.04 billion and 5.71 billion baht respectively, to reflect higher margins fuelled by low raw material costs and strong growth of the high-margin food business.
The brokerage expects CPF's results in the third quarter should increase year-on-year and even better the second-quarter result, supported by lower costs of materials, favourable meat prices, the peak export season and the ongoing growth of overseas operations.
Raw material prices, especially for corn in the harvest season, have slipped to around 6.30 baht a kilogramme from 10 baht in the third quarter in 2008.Domestic meat prices remain favourable at broilers and eggs remain at favourable levels of 56 baht a kilogramme for swine,41 baht/kg for broilers and 2.60 baht per egg.
CPF shares closed down 10 satang yesterday on the Stock Exchange of Thailand at 8.70 baht, in trade worth 401.49 million baht.
Monday, September 28, 2009
Myer to raise up to $2bn in share sale
Myer, Australia's largest department store chain, plans to raise up to US$2 billion in a share offering that will test investor appetite for retail stocks and may encourage other IPOs in the sector.
Myer, which was taken private by the US private equity firm TPG in 2006, said in its prospectus yesterday that it would offer up to 499.5 million shares in a range of A$3.90 to A$4.90 each.
The offering is expected to be divided equally between retail "mum and dad"investors and institutions, but analysts said that institutional investors might be cautious.
"It's very opportunistic at the moment.You are coming off a fairly strong tailwind from (government) stimulus and low interest rates," said Karara Capital portfolio manager Akshay Chopra.
The IPO market across Asia, particularly in Hong Kong, has heated up in recent weeks, but not all have fared well in a signal that investors have limited appetite for overly rich IPO valuations.
Myer will be Australia's largest IPO since drilling services company Boart Longyear Ltd in April 2007.
A consortium led by TPG Capital bought Myer for A$1.4 billion from Coles Group in 2006, and has spent more than A$370 million in updating logistics operations and renovating stores.
The owners of Myer are seeking to capitalise on a 50% share market rally that has lifted Australian shares near an 11-month high, while retail sales have been underpinned by government cash handouts to boost the economy.
Private equity firms have been stymied by the freezing of credit markets for two years and are only now being able to offload stakes bought during the boom as confidence recovers.
"The wide range in valuation (for Myer) is already telling us they are keeping options open -if institutional holders are a bit wary they will price at the low end of the range," said Chopra.
A successful listing by Myer could encourage other Australian retailers held by private equity firms to follow suit.
Analysts say potential IPO candidates include camping and outdoor gear retailer Kathmandu, owned by Goldman Sachs JBWere and Quadrant Private Equity, and Archer Capital-owned Ascendia Retail, which runs the Rebel Sport chain.
The indicative pricing implies Myer will have a market capitalisation of A$2.28 billion-$2.77 billion, plus debt of A$392 million. The sale will be lead managed by Credit Suisse, Goldman Sachs JBWere and Macquarie Capital Advisors.
Myer chief executive Bernie Brookes said the offering would also be marketed in the US, UK and Asia.
"There are a large number of IPOs taking place through Asia and there is still a more difficult period in both the UK and the US in regard to available capital, so we have not set any objectives for international investors," Brookes said.Myer has 65 stores across Australia, nearly double its upmarket rival David Jones'36 stores, and claims three million shoppers a week through its doors in a country of 21 million.
But the retail environment may not look as rosy in 2010.
"Everyone is well aware of some of the headwinds facing consumers over the next 12 months, as stimulus is removed," said White Funds Management portfolio manager Angus Gluskie.
Indeed, Australia's central bank governor Glenn Stevens said yesterday interest rates would be raised as demand picks up.
Myer said that based on proforma 2010 earnings, the company would be valued at a multiple of 14.3-17.3 times.Karara's Chopra said that implied a premium to the multiple of industrial stocks of around 13 times earnings.
TPG and Blum Capital have a combined stake of 84.2%, while the Myer family and management hold the balance. Myer said TPG and Blum would retain a stake of up to 13.5% after the initial public offering.
Share pricing is expected on Oct 30 and the shares are due to start trading Nov 2, the prospectus said.
Myer, which was taken private by the US private equity firm TPG in 2006, said in its prospectus yesterday that it would offer up to 499.5 million shares in a range of A$3.90 to A$4.90 each.
The offering is expected to be divided equally between retail "mum and dad"investors and institutions, but analysts said that institutional investors might be cautious.
"It's very opportunistic at the moment.You are coming off a fairly strong tailwind from (government) stimulus and low interest rates," said Karara Capital portfolio manager Akshay Chopra.
The IPO market across Asia, particularly in Hong Kong, has heated up in recent weeks, but not all have fared well in a signal that investors have limited appetite for overly rich IPO valuations.
Myer will be Australia's largest IPO since drilling services company Boart Longyear Ltd in April 2007.
A consortium led by TPG Capital bought Myer for A$1.4 billion from Coles Group in 2006, and has spent more than A$370 million in updating logistics operations and renovating stores.
The owners of Myer are seeking to capitalise on a 50% share market rally that has lifted Australian shares near an 11-month high, while retail sales have been underpinned by government cash handouts to boost the economy.
Private equity firms have been stymied by the freezing of credit markets for two years and are only now being able to offload stakes bought during the boom as confidence recovers.
"The wide range in valuation (for Myer) is already telling us they are keeping options open -if institutional holders are a bit wary they will price at the low end of the range," said Chopra.
A successful listing by Myer could encourage other Australian retailers held by private equity firms to follow suit.
Analysts say potential IPO candidates include camping and outdoor gear retailer Kathmandu, owned by Goldman Sachs JBWere and Quadrant Private Equity, and Archer Capital-owned Ascendia Retail, which runs the Rebel Sport chain.
The indicative pricing implies Myer will have a market capitalisation of A$2.28 billion-$2.77 billion, plus debt of A$392 million. The sale will be lead managed by Credit Suisse, Goldman Sachs JBWere and Macquarie Capital Advisors.
Myer chief executive Bernie Brookes said the offering would also be marketed in the US, UK and Asia.
"There are a large number of IPOs taking place through Asia and there is still a more difficult period in both the UK and the US in regard to available capital, so we have not set any objectives for international investors," Brookes said.Myer has 65 stores across Australia, nearly double its upmarket rival David Jones'36 stores, and claims three million shoppers a week through its doors in a country of 21 million.
But the retail environment may not look as rosy in 2010.
"Everyone is well aware of some of the headwinds facing consumers over the next 12 months, as stimulus is removed," said White Funds Management portfolio manager Angus Gluskie.
Indeed, Australia's central bank governor Glenn Stevens said yesterday interest rates would be raised as demand picks up.
Myer said that based on proforma 2010 earnings, the company would be valued at a multiple of 14.3-17.3 times.Karara's Chopra said that implied a premium to the multiple of industrial stocks of around 13 times earnings.
TPG and Blum Capital have a combined stake of 84.2%, while the Myer family and management hold the balance. Myer said TPG and Blum would retain a stake of up to 13.5% after the initial public offering.
Share pricing is expected on Oct 30 and the shares are due to start trading Nov 2, the prospectus said.
Retailers make green shift
Retailers are increasingly aware of environmental problems and are moving step-by-step to go green not only in their own stores but also in their suppliers.
Tesco Lotus and Central Department Store are at the forefront of green initiatives this year with plans to reduce carbon dioxide (CO
2) released.Tesco Lotus, for example, is seeking partners for a green label for products,said Saofang Ekaluckrujee, senior corporate affairs manager at Ek-Chai Distribution System Co, the chain's operator.
The company wants to create customer awareness, she said.
"If a 'green tax' takes effect immediately, it will definitely encourage private companies and producers to grow green more," said Ms Saofang.
Ex-Chai has been very successful in joining with Philips Electronics Co to develop T5 light bulbs used at Tesco Lotus stores since 2006, she said. The company plans to change all bulbs at its stores to T5 models by next year.
The company also plans energy-saving initiatives based on its ground-breaking Salaya branch, including installing sliding doors for frozen products at all Tesco Lotus stores nationwide, she said.
Sirikate Chirakiti, executive vicepresident of store operations at Central Department Store, said the company was changing the raw materials of foam containers used at Central Department Store's Chidlom branch and Zen Department Store.
Central Department Store is also conducting a feasibility study on new technology for its electrical transformer at Chidlom next year. This is expected to reduce energy use by 1-2%.
From 2004 to the first eight months of 2009, the company has saved 17.79 million kilowatts in energy, she said.
The company recently started using light-emitting diodes in showcases for several product categories and will install them in other parts of department stores.
Central Department Store is considering selling environment-friendly products including fashion wear, she said.
Tesco Lotus and Central Department Store are at the forefront of green initiatives this year with plans to reduce carbon dioxide (CO
2) released.Tesco Lotus, for example, is seeking partners for a green label for products,said Saofang Ekaluckrujee, senior corporate affairs manager at Ek-Chai Distribution System Co, the chain's operator.
The company wants to create customer awareness, she said.
"If a 'green tax' takes effect immediately, it will definitely encourage private companies and producers to grow green more," said Ms Saofang.
Ex-Chai has been very successful in joining with Philips Electronics Co to develop T5 light bulbs used at Tesco Lotus stores since 2006, she said. The company plans to change all bulbs at its stores to T5 models by next year.
The company also plans energy-saving initiatives based on its ground-breaking Salaya branch, including installing sliding doors for frozen products at all Tesco Lotus stores nationwide, she said.
Sirikate Chirakiti, executive vicepresident of store operations at Central Department Store, said the company was changing the raw materials of foam containers used at Central Department Store's Chidlom branch and Zen Department Store.
Central Department Store is also conducting a feasibility study on new technology for its electrical transformer at Chidlom next year. This is expected to reduce energy use by 1-2%.
From 2004 to the first eight months of 2009, the company has saved 17.79 million kilowatts in energy, she said.
The company recently started using light-emitting diodes in showcases for several product categories and will install them in other parts of department stores.
Central Department Store is considering selling environment-friendly products including fashion wear, she said.
OP GARDEN TARGETS THAI CUSTOM
OP Place shopping centre operator Bhandhamitri, a subsidiary of TCC Group, has opened a sister shopping centre, OP Garden.
The new centre was built at a cost of Bt300 milliion with the goal of expanding the firm's customer base to welcome more Thai shoppers.
Titapar Tepakhun, managing director of Bhandhamitri, said the company decided to open the new shopping centre after experiencing a more than 50-per-cent drop in foreign customer traffic in the wake of the political turmoil of the past two years, with last year's blockade of Suvarnabhumi Airport doing particular damage.
"OP Place has always relied heavily on foreign shoppers, whose numbers are ,pre semsotive to political troubles.This is a major reason we decided to open a new shopping mall - as a way to reduce such risks," Titapar said.
Despite the emergence of signs that the economy is recovering, the number of the centre's foreign customers has seen only a modest rebound, she said.
The company is confident that customer levels will be fully restored by the fourth quarter, which is high tourist season, however.
Despite the drop in traffic, shopowners at OP Place have staved on due to the strength of the OP brand, Titapar said. "Our owners recognise the value of the OP brand, which accompanies only exclusivge products. They want to move to OP Garden, but we want to create a distinct segment [at OP Garden] in terms of products and target customers. For that reason, the brands at OP Garden are unlike those at OP Place. The product grade at OP Garden is premium, but the prices are lower than those at OP Place."
OP Place's clientele generally comprises foreigners and consumers with extraordinarily high purchasing power, Titapar said, while the main target group at OP Garden is Thais. Half of the shop-owners at OP Garden will be Thais, while OP Place has only 30 Thai vendors.
Most shop-owners at OP Garden sell the bulk of their products through the International Gift Fair & Bangkok International Houseware Fair (BIG&BIH). Their premium products are attractive but have few selling venues, she said.
Bhandhamitri also plans for OP Garden to host events to generate revenue. Such activities cannot be held at OP Place, where shop-owners and customers prefer privacy.
OP Garden opened for business two months ago, but the grand opening will take place in November. The mall is located on Charoenkrung Road, near its sibling. OP Garden will have a more contemporary look than OP Place, which features an "Asian heritage" style.
Titapar said the high land price was the main reason for OP Garden's hefty cost. The Bt300-million investment covers the cost of the land, renovation of existing structures and the installation of facilities.
The substantial investment led the company to set the mall's rental fee at Bt1,500 per square metre per month, compared to Bt1,000 at OP Place. OP Garden is 75 per cent occupied and is expected to be full by April, Titapar said.
The new centre was built at a cost of Bt300 milliion with the goal of expanding the firm's customer base to welcome more Thai shoppers.
Titapar Tepakhun, managing director of Bhandhamitri, said the company decided to open the new shopping centre after experiencing a more than 50-per-cent drop in foreign customer traffic in the wake of the political turmoil of the past two years, with last year's blockade of Suvarnabhumi Airport doing particular damage.
"OP Place has always relied heavily on foreign shoppers, whose numbers are ,pre semsotive to political troubles.This is a major reason we decided to open a new shopping mall - as a way to reduce such risks," Titapar said.
Despite the emergence of signs that the economy is recovering, the number of the centre's foreign customers has seen only a modest rebound, she said.
The company is confident that customer levels will be fully restored by the fourth quarter, which is high tourist season, however.
Despite the drop in traffic, shopowners at OP Place have staved on due to the strength of the OP brand, Titapar said. "Our owners recognise the value of the OP brand, which accompanies only exclusivge products. They want to move to OP Garden, but we want to create a distinct segment [at OP Garden] in terms of products and target customers. For that reason, the brands at OP Garden are unlike those at OP Place. The product grade at OP Garden is premium, but the prices are lower than those at OP Place."
OP Place's clientele generally comprises foreigners and consumers with extraordinarily high purchasing power, Titapar said, while the main target group at OP Garden is Thais. Half of the shop-owners at OP Garden will be Thais, while OP Place has only 30 Thai vendors.
Most shop-owners at OP Garden sell the bulk of their products through the International Gift Fair & Bangkok International Houseware Fair (BIG&BIH). Their premium products are attractive but have few selling venues, she said.
Bhandhamitri also plans for OP Garden to host events to generate revenue. Such activities cannot be held at OP Place, where shop-owners and customers prefer privacy.
OP Garden opened for business two months ago, but the grand opening will take place in November. The mall is located on Charoenkrung Road, near its sibling. OP Garden will have a more contemporary look than OP Place, which features an "Asian heritage" style.
Titapar said the high land price was the main reason for OP Garden's hefty cost. The Bt300-million investment covers the cost of the land, renovation of existing structures and the installation of facilities.
The substantial investment led the company to set the mall's rental fee at Bt1,500 per square metre per month, compared to Bt1,000 at OP Place. OP Garden is 75 per cent occupied and is expected to be full by April, Titapar said.
HIGH-END RETAIL PROPERTIES FACE POOR DEMAND
The global downturn has sent retail rents plunging on some of the world's most famous shopping streets, a study by global real estate group Cushman and Wakefield released recently showed.
Prime rents on more than half of 274big-name streets have fallen in the past 12 montjhs, said the report, which surveyed such storied venuses as Fifth Avenue in New York, the Champs-Elysees in Paris and Hong Kong's Causeway Bay. The agency said the decline in rents was the largest ever recorded in the study's 24-year-old history.
"The last 12 months have been one of the most difficult periods ever for the retail sector, with consumer spending and retail sales down in many markets," said John Strachan, global head of retail at Cushman. "In the previous 12-monjths period global retail markets appeared to be fairly resilient, but more significants as the full impact of the downturn has been realised."
But he added that "the worst is almost certainly now behind us."
Fifth Avenue retained its number one rating as the world's most expensive street, where retailers pay US$1,700 (Bt57,000) per square foot a year, a decline of 8.1 [er cent from 2008. Causeway Bay was the second most expensive steet land the Champs Elysees the third.
Sao Paulo's Alameda Lorena saw the largest gain in retail rents, up 111 per cent from 2008. The sharpest fall was on Colaba Causeway in Mumbai, where retail rents declined 63.5 per cent.
The decline in rents was the largest ever recorded in the study's 24-year history.
Prime rents on more than half of 274big-name streets have fallen in the past 12 montjhs, said the report, which surveyed such storied venuses as Fifth Avenue in New York, the Champs-Elysees in Paris and Hong Kong's Causeway Bay. The agency said the decline in rents was the largest ever recorded in the study's 24-year-old history.
"The last 12 months have been one of the most difficult periods ever for the retail sector, with consumer spending and retail sales down in many markets," said John Strachan, global head of retail at Cushman. "In the previous 12-monjths period global retail markets appeared to be fairly resilient, but more significants as the full impact of the downturn has been realised."
But he added that "the worst is almost certainly now behind us."
Fifth Avenue retained its number one rating as the world's most expensive street, where retailers pay US$1,700 (Bt57,000) per square foot a year, a decline of 8.1 [er cent from 2008. Causeway Bay was the second most expensive steet land the Champs Elysees the third.
Sao Paulo's Alameda Lorena saw the largest gain in retail rents, up 111 per cent from 2008. The sharpest fall was on Colaba Causeway in Mumbai, where retail rents declined 63.5 per cent.
The decline in rents was the largest ever recorded in the study's 24-year history.
Secrets of 20 successful years of 7-Eleven
Entering a new phase as a Convenience Food Store chain
Twenty years ago, the first ever 7-Eleven convenience store in Thailand opened its doors on a bustiling corner of Patpong road. The ear-soothing greeting "Sawasdee Krub/Ka" now resounds seven days a week, around the clock, echoing ever louder each day in tandem with the ever expanding network of stores all across the country.
Today, everybody knows 7-Eleven. Indeed, as everybody's favourite convenience store, it has become integral to the Thai urban lifestyle.
Nevertheless, even with its remarkable growth and ever larger customer base, the company recognises the need to be flexible and responsive to changing patterns of customer demand. In response to the latest trends, therefore, the company is now in the process of changing its business model from being a chain of convenience stores to being a chain of convenience food stores, starting from this year onwards.
Explained Mr. Korsak chairasmisak, chief Executive Officer of CP All Public Company Limited: "7-Eleven's strong growth is the result of the quality products it sells, especially tasty and hygienic instannt and ready-to-eat foods. Together with their convenient locations and friendly staff, it's why 7-Eleven stores respond so well to consumer needs in today's fast-pace urban lifestyle."
The executive continued that: "7-Eleven's new status as a Convenience Food Store chain will now also provide customers with quick service quality food products, ranging from snacks to heavy meals."
"The success of our business over thhe past 20 years has put us in a unique position to understand what our customers really want. And as it seems they want us to put more focus on instant food products, these will now account for about 70 percent of our entire product range and may well increase even further in the months to come," added Mr. Korsak.
a prototype store under the new concept was unveiled recently by CP All Public Limited at Sibunruang 1 Building on Silom Road. The original 7-Eleven convenience food store represents a state-of-the-art expression of the new concept of "Convenient Meals".
Marking the occasion, mr. Joe DePinto, Chief Executive Officer of 7-Eleven, Inc., USA, along with other key executives, flew in to congratulate the Thai executive team.
During their visit, the executives also took time to visit Panyapiwat Institute of Technology (PIT), CP All's in-house university of retailing business management established by the company to train capable personnel to facilitate its ongoing business expansion. subsequently, the party went on to visit C.P.Retailing and Marketing Company Limited (CPRAM), the manufacturer and seller of frozen food and fresh bakery that are supplied to 7-Eleven stores.
Reflecting on 7-Eleven's metamorphosis, Mr. Piyawat Titasattavorakul, Managing Director of CP all Public Company Limited, said: "7-Eleven is a Thai-born business that pioneered convenience retailing in communities."
"Today's 20thh anniversary celebration is really a springboard for us to move into the next phase of our development. Going forward, we will continue to strive to maintain our product quality so as to ensure consistent customer satisfaction."
"There are those who say our stores undermine traditional retail businesses in communities but in fact we are not competitors at all. Rather we are providers of complimentary ranges of products that customers demand. As such, we cordially co-exist with other small shops."
Success is never easy to achieve and even harder to maintain. nevertheless, 7-Eleven remains fully resolved to surmount all obstacles in order to serve its customers by meeting a wide range of their needs, including, from now on, delicious, high-quality and, above all, convenient meals in what is surely destined to become Thailand's leading convenience food store chain.
Twenty years ago, the first ever 7-Eleven convenience store in Thailand opened its doors on a bustiling corner of Patpong road. The ear-soothing greeting "Sawasdee Krub/Ka" now resounds seven days a week, around the clock, echoing ever louder each day in tandem with the ever expanding network of stores all across the country.
Today, everybody knows 7-Eleven. Indeed, as everybody's favourite convenience store, it has become integral to the Thai urban lifestyle.
Nevertheless, even with its remarkable growth and ever larger customer base, the company recognises the need to be flexible and responsive to changing patterns of customer demand. In response to the latest trends, therefore, the company is now in the process of changing its business model from being a chain of convenience stores to being a chain of convenience food stores, starting from this year onwards.
Explained Mr. Korsak chairasmisak, chief Executive Officer of CP All Public Company Limited: "7-Eleven's strong growth is the result of the quality products it sells, especially tasty and hygienic instannt and ready-to-eat foods. Together with their convenient locations and friendly staff, it's why 7-Eleven stores respond so well to consumer needs in today's fast-pace urban lifestyle."
The executive continued that: "7-Eleven's new status as a Convenience Food Store chain will now also provide customers with quick service quality food products, ranging from snacks to heavy meals."
"The success of our business over thhe past 20 years has put us in a unique position to understand what our customers really want. And as it seems they want us to put more focus on instant food products, these will now account for about 70 percent of our entire product range and may well increase even further in the months to come," added Mr. Korsak.
a prototype store under the new concept was unveiled recently by CP All Public Limited at Sibunruang 1 Building on Silom Road. The original 7-Eleven convenience food store represents a state-of-the-art expression of the new concept of "Convenient Meals".
Marking the occasion, mr. Joe DePinto, Chief Executive Officer of 7-Eleven, Inc., USA, along with other key executives, flew in to congratulate the Thai executive team.
During their visit, the executives also took time to visit Panyapiwat Institute of Technology (PIT), CP All's in-house university of retailing business management established by the company to train capable personnel to facilitate its ongoing business expansion. subsequently, the party went on to visit C.P.Retailing and Marketing Company Limited (CPRAM), the manufacturer and seller of frozen food and fresh bakery that are supplied to 7-Eleven stores.
Reflecting on 7-Eleven's metamorphosis, Mr. Piyawat Titasattavorakul, Managing Director of CP all Public Company Limited, said: "7-Eleven is a Thai-born business that pioneered convenience retailing in communities."
"Today's 20thh anniversary celebration is really a springboard for us to move into the next phase of our development. Going forward, we will continue to strive to maintain our product quality so as to ensure consistent customer satisfaction."
"There are those who say our stores undermine traditional retail businesses in communities but in fact we are not competitors at all. Rather we are providers of complimentary ranges of products that customers demand. As such, we cordially co-exist with other small shops."
Success is never easy to achieve and even harder to maintain. nevertheless, 7-Eleven remains fully resolved to surmount all obstacles in order to serve its customers by meeting a wide range of their needs, including, from now on, delicious, high-quality and, above all, convenient meals in what is surely destined to become Thailand's leading convenience food store chain.
SCG SEEKS THIRD GROUP OF POOR STUDENTS
The Siam Cement Group has begun a third year of its Home Mart Career Choice programme, aiming to provide training to 25-30 poor students who want to excel in knowledge of construction materials.
SCG Distribution's president Kajohndet Sangsuban said the programme, run in cooperation with Samut Prakan Technical College, had already produced 63 students and some of them were now working for SCG.
With an annual budget of Bt3 million, the programme targets mainly those who want to pursue careers in construction-material distribution centres, mainly Home Mart, which is an SCG business unit.
Kajohndet said the programme was open to students from around the country. However, SCG's management selected candidates by interview only.
"Our criteria involve the students'family incomes. That is our first priority in selecting students to receive the scholarship. Then we will look at their study profile. We want to give poor students the opportunity for education and a job," he said.
The company pays all of the expenses for a two-year course for successful candidates, averaging Bt100,000 per person per year.
Apinya Todmuang, 20, from Chiang Mai, said she decided to join the programme in 2007 because it met all of her expenses and was also a non-binding scholarship. Winning a scholarship helped her family by cutting her study costs. When she graduated, she was guaranteed a job with a good income of Bt7,000 per month. Apinya now works at a Home Mart distribution centre in Nakhon Pathom province.
Another successful graduate, Winai Jaroenwong, 22, came from Nakhom Phanom province to win an SCG scholarship. He now works at Home Mart Bang Na, with a salary of about Bt8,000 per month.
"I applied for this programme because I believed that when I graduated, I could find a job and help my family to have a better-quality life. This programme gave me an education and a job opportunity," he said.
Under the programme, SCG and the college give the students the knowledge and the experience to join the staff of a construction-materials distribution centre. They spend six months at college lectures, followed by six months on-the-job training at a Home Mart store, for a total of two years'study.
When they graduate, they can seek a job with Home Mart, but they are also free to do anything they want.
"This is a non-binding scholarship," Kajohndet said. However, graduates get better opportunities than other students because they hold both a college certificate and an SCG certificate for having passed through the Home Mart Career Choice programme.
Thirty-two students graduated from the programme's first year. Of these, 31 now work at Home Mart distribution centres.
The second group, totalling 31 students, will graduate next year.
Applications for the third group close next week. It is open for precollege students with a grade-6 or equivalent education. Examinations to select 25-30 successful candidates will be held on October 7 and 10 at examination centres in Roi Et province and Bangkok.
Instead of studying at Samut Prakan Technical College, the third group will attend Theerabhada Technology Vocational College in Roi Et, which opens on October 20. The change follows realisation that most of the successful students are coming from the North and Northeast of the country.
"We think this is a good way to pay society back [for our success], because if we create educational opportunities and jobs for poor people, they can create quality of living for both themselves and their family after they graduate," Kajohndet said.
SCG Distribution's president Kajohndet Sangsuban said the programme, run in cooperation with Samut Prakan Technical College, had already produced 63 students and some of them were now working for SCG.
With an annual budget of Bt3 million, the programme targets mainly those who want to pursue careers in construction-material distribution centres, mainly Home Mart, which is an SCG business unit.
Kajohndet said the programme was open to students from around the country. However, SCG's management selected candidates by interview only.
"Our criteria involve the students'family incomes. That is our first priority in selecting students to receive the scholarship. Then we will look at their study profile. We want to give poor students the opportunity for education and a job," he said.
The company pays all of the expenses for a two-year course for successful candidates, averaging Bt100,000 per person per year.
Apinya Todmuang, 20, from Chiang Mai, said she decided to join the programme in 2007 because it met all of her expenses and was also a non-binding scholarship. Winning a scholarship helped her family by cutting her study costs. When she graduated, she was guaranteed a job with a good income of Bt7,000 per month. Apinya now works at a Home Mart distribution centre in Nakhon Pathom province.
Another successful graduate, Winai Jaroenwong, 22, came from Nakhom Phanom province to win an SCG scholarship. He now works at Home Mart Bang Na, with a salary of about Bt8,000 per month.
"I applied for this programme because I believed that when I graduated, I could find a job and help my family to have a better-quality life. This programme gave me an education and a job opportunity," he said.
Under the programme, SCG and the college give the students the knowledge and the experience to join the staff of a construction-materials distribution centre. They spend six months at college lectures, followed by six months on-the-job training at a Home Mart store, for a total of two years'study.
When they graduate, they can seek a job with Home Mart, but they are also free to do anything they want.
"This is a non-binding scholarship," Kajohndet said. However, graduates get better opportunities than other students because they hold both a college certificate and an SCG certificate for having passed through the Home Mart Career Choice programme.
Thirty-two students graduated from the programme's first year. Of these, 31 now work at Home Mart distribution centres.
The second group, totalling 31 students, will graduate next year.
Applications for the third group close next week. It is open for precollege students with a grade-6 or equivalent education. Examinations to select 25-30 successful candidates will be held on October 7 and 10 at examination centres in Roi Et province and Bangkok.
Instead of studying at Samut Prakan Technical College, the third group will attend Theerabhada Technology Vocational College in Roi Et, which opens on October 20. The change follows realisation that most of the successful students are coming from the North and Northeast of the country.
"We think this is a good way to pay society back [for our success], because if we create educational opportunities and jobs for poor people, they can create quality of living for both themselves and their family after they graduate," Kajohndet said.
Waitrose to add 300 outlets
The upmarket British grocer Waitrose is planning a big expansion into convenience stores which could eventually see the fast-growing chain add another 300 outlets, more than doubling its current number of stores.
The move is a direct challenge to Marks & Spencer's Simply Food convenience chain and will also increase competition for big supermarket groups like Tesco,J Sainsbury and Wm Morrison, all of which are rapidly expanding into smaller store formats.
Waitrose, part of the employee-owned John Lewis Partnership, said yesterday that 6.5 million potential customers were currently unable to easily access one of its stores.
To reach them, it plans to expand in part via partnerships.
The chain, which currently has 215 branches, will extend two trial outlets at motorway service stations owned by Welcome Break to a further nine sites.
It is also in talks with health and beauty retailer Boots over a trial to sell a small number of product ranges in each other's stores.
In addition, Waitrose, which has been opening smaller stores of about 5,000 to 7,000 square feet in size, plans to trial convenience shops of 2,000 to 4.000 square feet next year.
"This move gives Waitrose an overall potential for 300 convenience branches,"it said in a statement.
The move is a direct challenge to Marks & Spencer's Simply Food convenience chain and will also increase competition for big supermarket groups like Tesco,J Sainsbury and Wm Morrison, all of which are rapidly expanding into smaller store formats.
Waitrose, part of the employee-owned John Lewis Partnership, said yesterday that 6.5 million potential customers were currently unable to easily access one of its stores.
To reach them, it plans to expand in part via partnerships.
The chain, which currently has 215 branches, will extend two trial outlets at motorway service stations owned by Welcome Break to a further nine sites.
It is also in talks with health and beauty retailer Boots over a trial to sell a small number of product ranges in each other's stores.
In addition, Waitrose, which has been opening smaller stores of about 5,000 to 7,000 square feet in size, plans to trial convenience shops of 2,000 to 4.000 square feet next year.
"This move gives Waitrose an overall potential for 300 convenience branches,"it said in a statement.
Thursday, September 24, 2009
Carrefour issues member cards
CenCar Co, the local operator of Carrefour hypermarkets, is stepping up its customer loyalty and retention programmes to better compete with rivals Tesco Lotus and Big C.
The launch of membership cards by major retail players has intensified in recent years.
Central Retail Corporation pioneered the innovation locally with the introduction of by Tops Supermarket's Spot Rewards in June 2004 followed by The 1 Card for the other CRC brands in 2006 ago.
Carrefour introduced its I Wish card in 2007. The Mall Group started its M Card loyalty programme earlier this year.A fewmonths later Tesco Lotus and Big C Supercenter introduced the Club Card and Big Card, respectively.
CenCar initially planned to spend 140-150 million baht to promote sales in the fourth quarter, said merchandising director Prapaphan Ploysaengngam. But,almost one-third of the budget, or 50 million baht, will now be allocated to the Carrefour Month 2009 campaign which runs from tomorrow until Oct 29.
The promotion offers I Wish cardholders discounts between 3% to 100%on their next purchase at 37 stores nationwide.
Apart from giving discounts, all vendors at Carrefour shopping centres will for the first time join a campaign and offer giveaways and promotional items to shoppers."It is difficult to draw new customers to shop at our stores and it is more difficult to retain our existing customers particularly when the economy is weak," Ms Prapaphan said.
Currently, CenCar has 1.6 million I Wish cardholders and expects the figure to rise to 2 million members by the year-end. Of the 1.6 million members,about 60% are active and spend an average 800 baht per shopping trip.
With the new campaign, CenCar expects to boost the number of loyal customers to 70%, up from current 60%.
For its expansion plan, the company will officially open its 37th Carrefour branch in Lop Buri today. Two outlets will be opened in Lam Luk Ka, Pathum Thani next month and in Chumphon province in December, increasing the total store count to 39 by the year-end.
Combined, the three new stores will cost 1.5 billion baht and hire 600 new jobs. Each outlet has 6,000 square metres of retail space.
The launch of membership cards by major retail players has intensified in recent years.
Central Retail Corporation pioneered the innovation locally with the introduction of by Tops Supermarket's Spot Rewards in June 2004 followed by The 1 Card for the other CRC brands in 2006 ago.
Carrefour introduced its I Wish card in 2007. The Mall Group started its M Card loyalty programme earlier this year.A fewmonths later Tesco Lotus and Big C Supercenter introduced the Club Card and Big Card, respectively.
CenCar initially planned to spend 140-150 million baht to promote sales in the fourth quarter, said merchandising director Prapaphan Ploysaengngam. But,almost one-third of the budget, or 50 million baht, will now be allocated to the Carrefour Month 2009 campaign which runs from tomorrow until Oct 29.
The promotion offers I Wish cardholders discounts between 3% to 100%on their next purchase at 37 stores nationwide.
Apart from giving discounts, all vendors at Carrefour shopping centres will for the first time join a campaign and offer giveaways and promotional items to shoppers."It is difficult to draw new customers to shop at our stores and it is more difficult to retain our existing customers particularly when the economy is weak," Ms Prapaphan said.
Currently, CenCar has 1.6 million I Wish cardholders and expects the figure to rise to 2 million members by the year-end. Of the 1.6 million members,about 60% are active and spend an average 800 baht per shopping trip.
With the new campaign, CenCar expects to boost the number of loyal customers to 70%, up from current 60%.
For its expansion plan, the company will officially open its 37th Carrefour branch in Lop Buri today. Two outlets will be opened in Lam Luk Ka, Pathum Thani next month and in Chumphon province in December, increasing the total store count to 39 by the year-end.
Combined, the three new stores will cost 1.5 billion baht and hire 600 new jobs. Each outlet has 6,000 square metres of retail space.
Tuesday, September 22, 2009
Snack-maker UM to open more stores at PTT stations
UM Tridaughter Sweet (UM), the maker and franchiser of Kanom Baan Ayakarn Thai Cake snacks, has opted to expand its network of outlets to PTT petrol stations, rather than shopping malls, in a bid to tap more families.
UM director Nuttaya Sawatpoon said the company has 23 Kanom Baan Ayakarn shops in shopping malls, which should be enough to serve that market. It has decided to focus more on opening shops in new types of locations. Petrol stations are seen as a way of expanding into the family market.
"Consumers in the family segment shop at convenience stores, bakery shops and coffee shops when the family vehicle is filled up at the petrol station," Nuttaya said. Moreover, the rents at petrol stations are not high, she said.Kanom Baan Ayakarn already has three shops at PTT petrol stations. Newer PTT-based outlets would be smaller than these, however.
The company believes the expansion into PTT's petrol stations will boost its revenue to Bt150 million next year, from an expected Bt100 million this year.
The sweet-maker is following the example of Siam Hands, the maker of Tangmo-brand apparel, which recently began opening shops at PTT petrol stations, believing the network of 1,400 stations nationwide, and the purchasing power of its customers, could help boost its profits.
Nuttaya said UM will open five shops in the fourth quarter of this year, four of which will be located at PTT stations. The plan is expected to require investment of at least Bt500,000 per PTT shop.
The fifth shop is a franchise in Hat Yai, Songkhla.
Nuttaya said the five new shops are expected to offset a decline in sales in the second quarter.
"We need to be aggressive in opening new shops, as the domestic economy is improving. This year the company targets sales of Bt100 million, up from Bt97 million last year," she said. The company will have 38 shops by the end of this year, up from 33 at present. Five of the shops are run by franchisees. The rest are UM's own shops.
Nuttaya said the company plans to open at least 10 new franchise stores next year.
Expansion through franchisees is expected to grow, she said, adding that the company is in negotiations with investors in Nakhon Pathom, Ayutthaya and Suphan Buri.
UM director Nuttaya Sawatpoon said the company has 23 Kanom Baan Ayakarn shops in shopping malls, which should be enough to serve that market. It has decided to focus more on opening shops in new types of locations. Petrol stations are seen as a way of expanding into the family market.
"Consumers in the family segment shop at convenience stores, bakery shops and coffee shops when the family vehicle is filled up at the petrol station," Nuttaya said. Moreover, the rents at petrol stations are not high, she said.Kanom Baan Ayakarn already has three shops at PTT petrol stations. Newer PTT-based outlets would be smaller than these, however.
The company believes the expansion into PTT's petrol stations will boost its revenue to Bt150 million next year, from an expected Bt100 million this year.
The sweet-maker is following the example of Siam Hands, the maker of Tangmo-brand apparel, which recently began opening shops at PTT petrol stations, believing the network of 1,400 stations nationwide, and the purchasing power of its customers, could help boost its profits.
Nuttaya said UM will open five shops in the fourth quarter of this year, four of which will be located at PTT stations. The plan is expected to require investment of at least Bt500,000 per PTT shop.
The fifth shop is a franchise in Hat Yai, Songkhla.
Nuttaya said the five new shops are expected to offset a decline in sales in the second quarter.
"We need to be aggressive in opening new shops, as the domestic economy is improving. This year the company targets sales of Bt100 million, up from Bt97 million last year," she said. The company will have 38 shops by the end of this year, up from 33 at present. Five of the shops are run by franchisees. The rest are UM's own shops.
Nuttaya said the company plans to open at least 10 new franchise stores next year.
Expansion through franchisees is expected to grow, she said, adding that the company is in negotiations with investors in Nakhon Pathom, Ayutthaya and Suphan Buri.
Long-stalled retail draft gets new life
Despite growing scepticism over how long it will manage to stay in the office,the government vows to move ahead with plans to revise the long-delayed Retail and Wholesale Act, vowing to finalise the draft and bring it for parliamentary debate within three months.
Prime Minister Abhisit Vejjajiva recently directed Kiat Sittheeamorn, head of the Thailand Trade Representative office, to chair the working panel to speed up revising the act.
The revision, which takes also into account international practices, and public hearings are expected to be completed in October or November and parliamentary debate is likely in December or early next year.
The Commerce Ministry began public hearings on the new law last Friday and plans to organise eight more hearings over the next two months.The hearings are aimed at ensuring fair conditions for businesses covered under the law and preventing any conflicts following implementation.
The hearings will focus on four main points: types of businesses to be controlled, the agency authorised to approve new businesses, support for small retailers, and punishment of violators.
According to Mr Kiat, the new draft would be based on the principles that allow both traditional family shops and large modern-trade operators to coexist.
New modern-trade stores must be located in suburban areas, while existing operators in crowded areas may be required to close at 5 pm for two or three days a week, he said.
In a bid to enable small family outlets to stay competitive, the government may provide experts to give them suggestions on how to improve their services, while the new law also needs to set guidelines on the size of moderntrade outlets.
Mr Kiat, said the law also needed to promote fair dealing between moderntrade operators and suppliers and promote Thai entrepreneurs to develop their own brands.
A Commerce Ministry source said the act was likely to pass if the Abhisit government remained in office until next year.
The long-awaited retail industry regulations have moved at a snail's pace despite calls by small operators for the past decade for legislation to regulate the rapid growth of hypermarkets, chain convenience stores and other large operators.
Critics say that the Interior Ministry's current urban planning and building codes are not adequate for the changed business environment, in which chains are squeezing out family businesses.
The new law did not win support during the Thaksin Shinawatra administration. Even when it was approved by the Surayud Chulanont government,the National Legislative Assembly sent the draft back.
Under the current draft, which focuses on protecting local retail businesses, existing giant retailers can expand but must comply with new regulations - restricting operating hours,size and proximity to city centres - to leave room for small players.
Prime Minister Abhisit Vejjajiva recently directed Kiat Sittheeamorn, head of the Thailand Trade Representative office, to chair the working panel to speed up revising the act.
The revision, which takes also into account international practices, and public hearings are expected to be completed in October or November and parliamentary debate is likely in December or early next year.
The Commerce Ministry began public hearings on the new law last Friday and plans to organise eight more hearings over the next two months.The hearings are aimed at ensuring fair conditions for businesses covered under the law and preventing any conflicts following implementation.
The hearings will focus on four main points: types of businesses to be controlled, the agency authorised to approve new businesses, support for small retailers, and punishment of violators.
According to Mr Kiat, the new draft would be based on the principles that allow both traditional family shops and large modern-trade operators to coexist.
New modern-trade stores must be located in suburban areas, while existing operators in crowded areas may be required to close at 5 pm for two or three days a week, he said.
In a bid to enable small family outlets to stay competitive, the government may provide experts to give them suggestions on how to improve their services, while the new law also needs to set guidelines on the size of moderntrade outlets.
Mr Kiat, said the law also needed to promote fair dealing between moderntrade operators and suppliers and promote Thai entrepreneurs to develop their own brands.
A Commerce Ministry source said the act was likely to pass if the Abhisit government remained in office until next year.
The long-awaited retail industry regulations have moved at a snail's pace despite calls by small operators for the past decade for legislation to regulate the rapid growth of hypermarkets, chain convenience stores and other large operators.
Critics say that the Interior Ministry's current urban planning and building codes are not adequate for the changed business environment, in which chains are squeezing out family businesses.
The new law did not win support during the Thaksin Shinawatra administration. Even when it was approved by the Surayud Chulanont government,the National Legislative Assembly sent the draft back.
Under the current draft, which focuses on protecting local retail businesses, existing giant retailers can expand but must comply with new regulations - restricting operating hours,size and proximity to city centres - to leave room for small players.
Sunday, September 20, 2009
CANALSIDE MARKET A MAGNET FOR URBANITES
For the past five years the spacious grounds along the banks of Khlong Lad Mayom have served as a weekend getaway for numerous day-trippers looking for the taste and feel of old Thailand.
Every Saturday and Sunday at Khlong Lad Mayom, locals gather in small boats and canalside stalls with a wide variety of fresh homegrown produces and mouth-watering delicacies to pamper visitors' taste buds. These include herbal beverages, sweets and an endless array of traditional Thai dishes whose recipes have been handed down from generation to generation.
Credit for this weekend success story must be given to the determined initiative of the Khlong Lad Mayom community leader, Chuan Chuchan, a senior resident whose desire to preserve the canalside community led him to establish the floating market as a way to maintain the neighbourhood's unpretentious natural features and traditional way of life.
Mr Chuan saw that the peaceful atmosphere and shady surroundings serve to detach the waterside location from the regular bustle of city life, and envisioned Khlong Lad Mayom as a magnet to draw all breeds of travellers away from the stark urban landscape into an idyllic bygone era.
The development of cultural tourism was implemented as a conservation strategy as well as an economic initiative. In turning the waterway into a secondary source of income for locals, Mr Chuan believed that the floating market would also create a focal point to strengthen community harmony as well as contribute significantly to a sense of ownership and homeland pride.
His notion has ultimately proved to be beneficial to a growing number of locals. The once modest floating market has been gradually enlarged and expanded to cover a wide stretch of land on both sides of Bang Ramad Road, and witnesses a continual flow of tourists.
Apart from the local culinary delights, rental boats are available to access an extensive network of navigable waterways. Winding through orchards and farms dotted with houses and sites of historical importance, visitors are provided with a glimpse into the charming old way of life along the canal. There are tours of the attractions adjacent to the market lasting an hour or two, or a half-day passage can be booked to view popular sightseeing spots further out which are connected to the Khlong Lad Mayom community via the canal system.
The Khlong Lad Mayom market might still be overshadowed by some of the more famous floating tourist hubs in the city, but its relaxing ambience definitely holds the promise of a great and enjoyable escape.
Every Saturday and Sunday at Khlong Lad Mayom, locals gather in small boats and canalside stalls with a wide variety of fresh homegrown produces and mouth-watering delicacies to pamper visitors' taste buds. These include herbal beverages, sweets and an endless array of traditional Thai dishes whose recipes have been handed down from generation to generation.
Credit for this weekend success story must be given to the determined initiative of the Khlong Lad Mayom community leader, Chuan Chuchan, a senior resident whose desire to preserve the canalside community led him to establish the floating market as a way to maintain the neighbourhood's unpretentious natural features and traditional way of life.
Mr Chuan saw that the peaceful atmosphere and shady surroundings serve to detach the waterside location from the regular bustle of city life, and envisioned Khlong Lad Mayom as a magnet to draw all breeds of travellers away from the stark urban landscape into an idyllic bygone era.
The development of cultural tourism was implemented as a conservation strategy as well as an economic initiative. In turning the waterway into a secondary source of income for locals, Mr Chuan believed that the floating market would also create a focal point to strengthen community harmony as well as contribute significantly to a sense of ownership and homeland pride.
His notion has ultimately proved to be beneficial to a growing number of locals. The once modest floating market has been gradually enlarged and expanded to cover a wide stretch of land on both sides of Bang Ramad Road, and witnesses a continual flow of tourists.
Apart from the local culinary delights, rental boats are available to access an extensive network of navigable waterways. Winding through orchards and farms dotted with houses and sites of historical importance, visitors are provided with a glimpse into the charming old way of life along the canal. There are tours of the attractions adjacent to the market lasting an hour or two, or a half-day passage can be booked to view popular sightseeing spots further out which are connected to the Khlong Lad Mayom community via the canal system.
The Khlong Lad Mayom market might still be overshadowed by some of the more famous floating tourist hubs in the city, but its relaxing ambience definitely holds the promise of a great and enjoyable escape.
All the best of Japanese luck
Loft, the Japan-based chain,has just blown out the candles on its 12th-burtgdat cake and come up with a fresh collection of decorative items, gifts and stationery that capture the cultural charms of the Land of the Rising Sun.
Auspicious animals roam the new line, promising to bring good fortune. There's the lucky cat Maneki Neko Sekiguchi the monkey and a turtle and owl, all in vivid colours.
Teens who love flowers and manga will find the beautiful Sakura and pouplar Totoro cartoon characters.
There are Daruma Piggy banks, bubble-head Daruma dolls, Oni devil masks, Totoro music boxes and Tamagotchi electronic pets, plus key rings, luck cat calendadrs, comfy cushions and ceramic ware painted by celebrated artist Shinzi Katoh.
You can also get pink lunchboxes with chopsticks,Sakura notebooks and cosmetics cases and cardholders and notebooks made from printed Japanese textile.
Auspicious animals roam the new line, promising to bring good fortune. There's the lucky cat Maneki Neko Sekiguchi the monkey and a turtle and owl, all in vivid colours.
Teens who love flowers and manga will find the beautiful Sakura and pouplar Totoro cartoon characters.
There are Daruma Piggy banks, bubble-head Daruma dolls, Oni devil masks, Totoro music boxes and Tamagotchi electronic pets, plus key rings, luck cat calendadrs, comfy cushions and ceramic ware painted by celebrated artist Shinzi Katoh.
You can also get pink lunchboxes with chopsticks,Sakura notebooks and cosmetics cases and cardholders and notebooks made from printed Japanese textile.
Giant foreign retailers taking over a lot of land, seminar hears from concerned Thais
Thais have lost their land ownership for expanding businesses and farm areas to foreign investors due to vast expansion by giant retailers, representatives at a seminar on the Retail and Wholesale Business Act (RBA) said.
Speaking at the seminar yesterday on 'Retail Act: the Regulations in Capitalism and the Globalisation', organised by the Internal Trade Department, panelists voiced concern that foreign modern traders have occupied plenty of land to boost their business nationwide.
They said that foreign retailers now have ownership over larger amounts of land through their outlets nationwide. They have the ownership right due to the lack of a specific law to block their expansion.
Wichian Tangtumsatid, president of the Association for the Protection of Thai Occupation, said the expansion of large superstore chains have not only harmed small retailers, but also led to Thais losing their land for doing business and farming.
"People are not aware that they have lost tens of thousands of rai to modern retailers. Farmers now have lower plantation areas due to wide expansion of modern retailers into small communities," he said.
According to the commercial commission, there are about 680,000 small retailers and 125,000 fresh markets currently in Thailand. So far, some 20.7 million people are involved in the retail business, including owners, suppliers, employees, and family members of traditional retail businesses.
Retail and wholesale business is currently worth Bt1.4 trillion. The sector accounts for 15 per cent of Gross Domestic Product. Of these, foreign investors, or the top five modern retail operators have enjoyed more than 50 per cent market share of the business.
The association said giant retail businesses have expanded 90 to 100 per cent in the past 10 years, while the retail business has generally expanded by only 70 per cent during the same period.
The association plans to propose its own draft for effectively controlling giant retailers' expansion in the country.
Under the new draft from the people's side, it will specify that each retail or wholesale firm must not have a combined land of over 100,000 square metres. The draft law is expected to be completed in November this year for the government's consideration in line with the Commerce Ministry's draft.
In addition, Thai retailers have called for the government to enact the Ministry Regulation for halting expansion of modern stores ahead of the retail act.
Somchai Pornratanacharoen, president of the Association of Thai Wholesaling and Retailing, said the government must urgently announce temporary measures to stop large retailers from establishing new stores as they already have too many stores.
"Thai small retailers have long suffered from the vast expansion of modern retailers. The government must ensure that during the vacuum period, small retailers will survive," Somchai said.
Commerce Minister Porntiva Nakasai said that she could not assure when the retail act will be implemented. However, the current government has a clear policy to support the act's implementation to ensure a level playing field in the industry.
Speaking at the seminar yesterday on 'Retail Act: the Regulations in Capitalism and the Globalisation', organised by the Internal Trade Department, panelists voiced concern that foreign modern traders have occupied plenty of land to boost their business nationwide.
They said that foreign retailers now have ownership over larger amounts of land through their outlets nationwide. They have the ownership right due to the lack of a specific law to block their expansion.
Wichian Tangtumsatid, president of the Association for the Protection of Thai Occupation, said the expansion of large superstore chains have not only harmed small retailers, but also led to Thais losing their land for doing business and farming.
"People are not aware that they have lost tens of thousands of rai to modern retailers. Farmers now have lower plantation areas due to wide expansion of modern retailers into small communities," he said.
According to the commercial commission, there are about 680,000 small retailers and 125,000 fresh markets currently in Thailand. So far, some 20.7 million people are involved in the retail business, including owners, suppliers, employees, and family members of traditional retail businesses.
Retail and wholesale business is currently worth Bt1.4 trillion. The sector accounts for 15 per cent of Gross Domestic Product. Of these, foreign investors, or the top five modern retail operators have enjoyed more than 50 per cent market share of the business.
The association said giant retail businesses have expanded 90 to 100 per cent in the past 10 years, while the retail business has generally expanded by only 70 per cent during the same period.
The association plans to propose its own draft for effectively controlling giant retailers' expansion in the country.
Under the new draft from the people's side, it will specify that each retail or wholesale firm must not have a combined land of over 100,000 square metres. The draft law is expected to be completed in November this year for the government's consideration in line with the Commerce Ministry's draft.
In addition, Thai retailers have called for the government to enact the Ministry Regulation for halting expansion of modern stores ahead of the retail act.
Somchai Pornratanacharoen, president of the Association of Thai Wholesaling and Retailing, said the government must urgently announce temporary measures to stop large retailers from establishing new stores as they already have too many stores.
"Thai small retailers have long suffered from the vast expansion of modern retailers. The government must ensure that during the vacuum period, small retailers will survive," Somchai said.
Commerce Minister Porntiva Nakasai said that she could not assure when the retail act will be implemented. However, the current government has a clear policy to support the act's implementation to ensure a level playing field in the industry.
Wednesday, September 16, 2009
CENTRAL FOOD TO SUPPLY JIFFY STORES
Central Food Retail (CFR) will supply products and back-office support to 146 Jiffy convenience stores throughout the country under an agreement with PTT Retail Management (PTTRM), the subsidiary of PTT, which operates the convenience stores.
Under the partnership, about 60 per cent of 4,500 products will be supplied and managed by CFR. The company will also introduce fresh products at Jiffy stores in the near future. As a business unit of Central Retail Corporation (CRC), CFR now operates Central Food Hall, Tops Market, Tops Super and Tops Daily brands.
Dr Krisanapol Komolboon, managing director of PTTRM, said the move is in line with PTT's strategy to promote high-margin non-oil businesses, including Jiffy convenience stores, and Cafe Amazon coffee houses.
Krisanapol said PTT planned to increase the ratio of non-oil businesses from between 15 per cent and 20 per cent at present to at least 30 per cent in the next two to three years.
"We [PTTRM] and Central Retail share the same goal of fulfilling customers' needs with a wide range of goods and services, ensuring the right product at the right time in the right quality at the right place," he said.
PTTRM itself would invest about Bt2 billion over the next two years to improve the back-office system and the expansion of PTT Platinum gas stations, which have been recognised as premium brand for good service quality. About Bt400 million will be invested next year in the installation of a new IT-based Retail Automation System.
"We have already opened three new PTT Platinum gas stations this year at Kang Koi off Saraburi, Rama II Road, and Wang Noi off Ayutthaya. Another seven Platinum stations will be opened next year," said Krisanapol.
He said the company has used the CVX distribution service since June 2007 after acquiring the entire network of JET gas stations, including the Jiffy business from ConocoPhillips.
PTTRM also owns the local licences for Jiffy convenience stores in six markets - Cambodia, Laos, Singapore, the Philippines, Indonesia and Vietnam. PTT operates gas stations in Cambodia, Laos and the Philippines.
The transition to CFR's logistics and supply-chain management services began in March last year and was completed last month, when the Service Level Agreement (SLA), which measures consistency in supplying products to Jiffy stores, increased significantly from 93 per cent to 98 per cent. The average sales at Jiffy stores increased from Bt2.1 million per store per month to Bt2.26 million per store per month.
Central Marketing Group (CMG), CRC's trading and marketing unit, will soon open its retail shops for branded apparels at some PTT gas stations, particularly in tourist destinations.
Tos Chirathivat, CRC chief executive officer, said the partnership with PTTRM reflects the company's key strategic policy in expanding its retail businesses, not just through organic expansion but also through partnership.
"The partnership agreement also shows our great working capability in supporting partners and to create win-win situations," said Tos.
Under the partnership, about 60 per cent of 4,500 products will be supplied and managed by CFR. The company will also introduce fresh products at Jiffy stores in the near future. As a business unit of Central Retail Corporation (CRC), CFR now operates Central Food Hall, Tops Market, Tops Super and Tops Daily brands.
Dr Krisanapol Komolboon, managing director of PTTRM, said the move is in line with PTT's strategy to promote high-margin non-oil businesses, including Jiffy convenience stores, and Cafe Amazon coffee houses.
Krisanapol said PTT planned to increase the ratio of non-oil businesses from between 15 per cent and 20 per cent at present to at least 30 per cent in the next two to three years.
"We [PTTRM] and Central Retail share the same goal of fulfilling customers' needs with a wide range of goods and services, ensuring the right product at the right time in the right quality at the right place," he said.
PTTRM itself would invest about Bt2 billion over the next two years to improve the back-office system and the expansion of PTT Platinum gas stations, which have been recognised as premium brand for good service quality. About Bt400 million will be invested next year in the installation of a new IT-based Retail Automation System.
"We have already opened three new PTT Platinum gas stations this year at Kang Koi off Saraburi, Rama II Road, and Wang Noi off Ayutthaya. Another seven Platinum stations will be opened next year," said Krisanapol.
He said the company has used the CVX distribution service since June 2007 after acquiring the entire network of JET gas stations, including the Jiffy business from ConocoPhillips.
PTTRM also owns the local licences for Jiffy convenience stores in six markets - Cambodia, Laos, Singapore, the Philippines, Indonesia and Vietnam. PTT operates gas stations in Cambodia, Laos and the Philippines.
The transition to CFR's logistics and supply-chain management services began in March last year and was completed last month, when the Service Level Agreement (SLA), which measures consistency in supplying products to Jiffy stores, increased significantly from 93 per cent to 98 per cent. The average sales at Jiffy stores increased from Bt2.1 million per store per month to Bt2.26 million per store per month.
Central Marketing Group (CMG), CRC's trading and marketing unit, will soon open its retail shops for branded apparels at some PTT gas stations, particularly in tourist destinations.
Tos Chirathivat, CRC chief executive officer, said the partnership with PTTRM reflects the company's key strategic policy in expanding its retail businesses, not just through organic expansion but also through partnership.
"The partnership agreement also shows our great working capability in supporting partners and to create win-win situations," said Tos.
CP ALL TO INCREASE NUMBER OF 7-ELEVENS
CP All, the operator of 7-Eleven convenience stores, is planning to increase the number of franchised stores to 60 per cent within five years.
Managing director Piyawat Titasattavorakul said yesterday that franchised stores showed higher margins than the company's own stores, because they are run by individual entrepreneurs for whom efficiency and returns are the top priority. The plan is also in line with the company's policy to create more entrepreneurs.
At present, the number of 7-Eleven stores exceeds 5,000, with 2,344 or 45 per cent being run by franchisees. The company wants the proportion of franchised stores to increase by 3 per cent per annum.
"Ninety per cent of stores in countries like Japan and the United State is run by franchisees. We would like to do the same. CP All plans to only operate 3,000 branches and franchise the rest," he said.
Anittha Thanamit, assistant managing director, said that to support this policy CP All would have to offer franchisees more attractive returns.
At present, CP All offers two franchising models. In the first model, franchisees have to invest Bt1.5 million per branch, of which Bt500,000 will be spent on franchising fees and store decoration, with the remaining Bt1 million held back as a deposit that will be returned to franchisees if they want to bow out.
The second model requires an investment of Bt2.65 million per branch, of which Bt900,000 is put aside as a deposit guarantee and the remaining Bt1.75 million spent on franchising fees, store decoration and management.
Under the second model, CP All promises that investors can breakeven within three years.
Aside from the expansion of franchised stores, CP All is also planning to get 7-Eleven stores to focus more on food and beverages.
Piyawat said consumer goods generated a margin of around 10 per cent, while foods and drinks roughly 20 per cent. Besides, some of the food and drink items sold in 7-Eleven are produced by the Charoen Pokphand Group, CP All's parents company.
He added that at present 80 per cent of the products sold in 7-Eleven were edibles, and the firm plans to increase this proportion to 85:15 in the next three years.
Managing director Piyawat Titasattavorakul said yesterday that franchised stores showed higher margins than the company's own stores, because they are run by individual entrepreneurs for whom efficiency and returns are the top priority. The plan is also in line with the company's policy to create more entrepreneurs.
At present, the number of 7-Eleven stores exceeds 5,000, with 2,344 or 45 per cent being run by franchisees. The company wants the proportion of franchised stores to increase by 3 per cent per annum.
"Ninety per cent of stores in countries like Japan and the United State is run by franchisees. We would like to do the same. CP All plans to only operate 3,000 branches and franchise the rest," he said.
Anittha Thanamit, assistant managing director, said that to support this policy CP All would have to offer franchisees more attractive returns.
At present, CP All offers two franchising models. In the first model, franchisees have to invest Bt1.5 million per branch, of which Bt500,000 will be spent on franchising fees and store decoration, with the remaining Bt1 million held back as a deposit that will be returned to franchisees if they want to bow out.
The second model requires an investment of Bt2.65 million per branch, of which Bt900,000 is put aside as a deposit guarantee and the remaining Bt1.75 million spent on franchising fees, store decoration and management.
Under the second model, CP All promises that investors can breakeven within three years.
Aside from the expansion of franchised stores, CP All is also planning to get 7-Eleven stores to focus more on food and beverages.
Piyawat said consumer goods generated a margin of around 10 per cent, while foods and drinks roughly 20 per cent. Besides, some of the food and drink items sold in 7-Eleven are produced by the Charoen Pokphand Group, CP All's parents company.
He added that at present 80 per cent of the products sold in 7-Eleven were edibles, and the firm plans to increase this proportion to 85:15 in the next three years.
Subscribe to:
Posts (Atom)