CHIC REPUBLIC, a Thai chain of home-fashion and furniture stores, hopes to expand into Cambodia, Laos, Myanmar and Vietnam (CLMV) over the next three years while aiming to open at least one new store at home every year.
"After exploring opportunities in overseas markets for the past three years, the CLMV market has become one of our priorities," Kijja Pattamasattayasonthi, chairman and chief executive officer of Chic Republic Co, said yesterday.
He said the expansion would be made through three options - establishing sales representatives, forming joint ventures, or making its own investment.
Under the third option, the company estimates that acquiring a piece of land of about 3,000 to 4,000 square metres to construct a standalone store would cost around Bt100 million per location, and the project should reach break-even point within seven operational years.
"The big challenge for our company is that prices and rental rates of land in Laos and Cambodia are three time as high as in Thailand. But there is more room to grow in those markets," Kijja said.
Apart from those neighbouring countries, the company currently exports its products other markets including Russia and India.
The company is also planning to add more outlets in this country in the years to come. In the second half of this year, it plans to open a new 15,000sqm store in the Ratchaphruek area, worth Bt500 million. It now has three stores, at Ekamai-Ramintra, Bang Na and Pattaya.
Kijja said his company wanted to open at least one new outlet a year.
Despite the economic slowdown, the company is still confident of achieving its revenue target of Bt1 billion this year, up 15 per cent from Bt850 million last year, because its target customers are in the upper- and middle-income brackets and have suffered minimal impact from the economic conditions.
Those market segments still have high demand and purchasing power, reflected by the sales growth of residential property in both segments, which is contrary to the slowdown of the overall property market. This will expand the customer base from property projects, which have increased by more than 10 per cent since the start of this year.
Property projects contribute 25 per cent of Chic Republic's total revenue while the remaining 75 per cent is from individual customers.
Next year, the company targets revenue of Bt1.2 billion.
CHIC REPUBLIC, a Thai chain of home-fashion and furniture stores, hopes to expand into Cambodia, Laos, Myanmar and Vietnam (CLMV) over the next three years while aiming to open at least one new store at home every year."After exploring opportunities in overseas markets for the past three years, the CLMV market has become one of our priorities," Kijja Pattamasattayasonthi, chairman and chief executive officer of Chic Republic Co, said yesterday. He said the expansion would be made through three options - establishing sales representatives, forming joint ventures, or making its own investment. Under the third option, the company estimates that acquiring a piece of land of about 3,000 to 4,000 square metres to construct a standalone store would cost around Bt100 million per location, and the project should reach break-even point within seven operational years. "The big challenge for our company is that prices and rental rates of land in Laos and Cambodia are three time as high as in Thailand. But there is more room to grow in those markets," Kijja said.Apart from those neighbouring countries, the company currently exports its products other markets including Russia and India. The company is also planning to add more outlets in this country in the years to come. In the second half of this year, it plans to open a new 15,000sqm store in the Ratchaphruek area, worth Bt500 million. It now has three stores, at Ekamai-Ramintra, Bang Na and Pattaya.
Kijja said his company wanted to open at least one new outlet a year.
Despite the economic slowdown, the company is still confident of achieving its revenue target of Bt1 billion this year, up 15 per cent from Bt850 million last year, because its target customers are in the upper- and middle-income brackets and have suffered minimal impact from the economic conditions.
Those market segments still have high demand and purchasing power, reflected by the sales growth of residential property in both segments, which is contrary to the slowdown of the overall property market. This will expand the customer base from property projects, which have increased by more than 10 per cent since the start of this year.
Property projects contribute 25 per cent of Chic Republic's total revenue while the remaining 75 per cent is from individual customers.
Next year, the company targets revenue of Bt1.2 billion.
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