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Tag: central department store

  • Central Retail to double online after Shopee acquisition

    Central Retail to double online after Shopee acquisition

    Central Retail Corporation has announced plans to to double its online sales to THB10 billion (US$315.76 million) this year. Central’s CEO Nicolo Galante said the firm intends to lead in the omni-channel e-commerce business, overtaking Shopee. “Non-food businesses globally have been disrupted by digital transformation and are struggling against the likes of Amazon and Alibaba. As the biggest non-food player in Thailand, Central Retail pledges to move aggressively this year to tap into digital transformation,” said Galante in an interview.

    “We can be for Thailand what Amazon is in Western countries and Alibaba is in China. Everywhere in the world, the No.1 player in e-commerce and digital is always a new-economy company, but in Thailand it could be a company that is 71 years old.”

    In this regard, Central intends to launch an omnichannel platform of services distinctive from those of Lazada, Alibaba and Shopee, whereby the company will retail products and services both at physical stores and online. Central will assist partner brands who lack the resources to build their presence in the marketplace.

    It will launch the first such marketplaces for Central Department Store, PowerBuy and SuperSports within the next six months.

    “We will launch our omnichannel marketplaces for our retail business,” said Galante. “If there are some problems with the products, the customer can return the products to the store, get advice and other services at the store.”

    For apparel, Central will launch launch a “Reserve and Collect” service that allows buyers to reserve two or more sizes or colours of products online and choose which to buy after trying them in-store.

    The move is part of the firm’s considerable investment in technology, teams and new services in the hopes of taking the lead in the e-commerce business by 2021.

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  • Big year-end discounts on way

    Big year-end discounts on way

    The government seeks cooperation from retailers and wholesalers to cut product prices to help reduce consumers’ expenses and stimulate the economy in the final month of the year.

    The government is set to team up with wholesalers and retailers, which together have 13,500 branches nationwide, to cut product prices by 20%-80% to help reduce consumers’ expenses and stimulate the economy in the final month of the year.

    Commerce Minister Apiradi Tantraporn said the Internal Trade Department has been assigned to discuss with retailers and wholesalers, including hypermarket and supermarket operators, the possibility of holding special promotions to spur spending among Thais and tourists during December.

    “The ministry has cooperated with retailers and wholesalers to organise various activities to cut living costs since late 2015,” she said. “The campaign for this year-end promises special events with discounts as high as 80% for certain items.”

    Mrs Apiradi insisted the discounts will be given to brand-new products, not those currently on sale. Products that will feature in the campaign include food and beverages, consumer goods, electrical appliances, garments and accessories.

    The Business Development Department has also been instructed to talk with retail outlets under its supervision to participate in the year-end special discount programme, particularly for items like milled rice, instant noodles, vegetable oil, seasonings, detergent, dishwashing liquid, fabric softener, toothpaste and shampoo.

    She said the ministry has also asked for cooperation from department stores and retail outlets to hold special events or sales promotions to stimulate rice purchases to help local rice farmers.

    Retailers and wholesalers who are expected to participate in the scheme include the Thai Retailers Association, Siam Makro, the operator of Makro cash-and-carry store chain, Ek-chai Distribution System, the operator of Tesco Lotus hypermarkets, Big C Supercenter, Central Department Store, Robinson Department Store, Central Food Retail, the Mall Group, Tang Hua Seng, CP All, Foodland supermarket, Aeon (Thailand), Saha Lawson, Central FamilyMart, CPF Trading and TCC Logistics & Warehouse.

    In a separate development, the savings and credit cooperatives of employees of Thai Airways International Plc (THAI) will support direct sales of rice from farmers, said Mrs Apiradi.

    Flt Lt Kanok Thongpurk, vice-president of THAI, said farmers will be allowed to sell their products through all channels of THAI employees’ savings and credit cooperatives as well as THAI offices both in the provinces and Bangkok, including Don Mueang and Suvarnabhumi airports.

    Meanwhile, the Public Warehouse Organization and agricultural cooperatives have been instructed to open their spaces for farmers to sell their grain.

  • Thai online marketing firm COL to expand via M&A’s

    Thai online marketing firm COL to expand via M&A’s

    Thailand’s online marketing company COL Pcl has set aside 500 million baht ($14.12 million) to pursue acquisitions as it seeks to expand its customer base across Southeast Asia.

    COL is the operator of OfficeMate, B2S, Central Online Shopping, Mobile E-Books, and Cenergy Innovation.

    “The competition has become so fierce that many companies are finding it difficult to run their business. Hence, there are opportunities to acquire them, which will help us enlarge our customer base domestically and internationally,” Worawut Unjai, chief executive of the COL Group, said.

    The company is also shifting its focus on online business, which is expected to generate revenues of 800 million baht this year.

    Only last week, it informed the Stock Exchange of Thailand that it completed its entire investment disposal in Central Group Online Co, representing 49 per cent of total shares, to its subsidiary Cenergy Innovation Co, which is into retail online marketing and IT solution, for 147 million baht.

    It cited in the statement that the joint venture with Central Department Store, a leader in Thai retail, is key to gaining competitive advantage in the online retail market. It will be able to leverage Central’s expertise in inventory management, brand, and connections with suppliers and customers.

    “We will launch a new online shopping website in the third quarter. We will gather the goods from Central Group and its major partners and target to have 180,000 items in the website this year,” he cited.

    The COL Group posted 10.8 billion baht in total revenue in 2015, up 9.2 per cent from the previous year.

    Of that, 60 per cent was from OfficeMate and 37 per cent from B2S. Central Online made up for the remaining 3 per cent, which is being boosted to around 10 per cent of total revenue in 2016.

    He said, the group’s net profit was 394 million baht, thanks to its adjusted strategies and management policy for better efficiency.

    The group increased the number of products and services to address customers’ needs and catered to various businesses.

    COL Group expects to grow its revenue this year by 10 per cent to 11.9 billion baht despite lower consumer spending.

    OfficeMate is the first company in the group that has expanded into other countries and it would add branches in Vietnam, which will officially open this year.

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