Euro Decor launched into furniture fray

European Food started diversifying its business interests three years ago with investments in residential projects under the Aris brand worth between Bt700 million and Bt800 million, company president Somchai Wachakorn said. This led to an interest in opening a chain of furniture shops this year.

“We have invested about Bt200 million in the first Euro Decor branch,” he said.
Its new business will generate to be its total revenue average Bt200 million from real estate business as the next Bt1 billion from furniture trading business in the next three year from now, he said.Euro Decor was established in March with registered capital of Bt5 million. Managing director Chutchawan Thangtongchin said the company built its first branch at Tiwanond Soi 14, which had its grand opening yesterday. The company plans to open several branches a year, targeting 10 branches within three years. Average investment per branch is calculated at Bt200 million.

Chutchawan said he foresees strong demand for furniture. The firm puts a priority on imported furniture, with items from India, China, Malaysia and Vietnam comprising up to 90 per cent of the approximately 1,000 products on offer, and the remainder from domestic producers.
The Thai furniture market has seen average growth of 5 per cent a year, helped by the opening of a local branch of international furniture firm Ikea, which has benefited other furniture producers and importers.
The furniture market in Thailand is worth about Bt60 billion a year.
Euro Decor targets total sales between Bt8 million and Bt10 million a month for the first year of operation next year.
“We believe that our designs and prices will make us competitive with other furniture firms in the market,” he said.