Index opens second new branch this year

Managing director Kridchanok Patamasatayasonthi said this area of Bangkok was a flourishing neighbourhood with growing infrastructure and residential projects. Currently, there are 21 projects under development with 6,850 units of detached homes and condominiums, with house prices ranging from Bt9 million to Bt40 million.
There are various groups living in the area – large families, modern families, working individuals – in a total of 657,000 units housing 1.5 million people in Lat Phrao, Wang Thonglang, Bang Kapi, Bang Khen, Lak Si, Don Muang and Sai Mai districts.
Though there are plenty of other furniture and home-decor businesses in the area, Index Living Mall believes it can succeed as it caters to mid-to-high-income consumers who are looking for products that differ from other brands. The company has identified four distinct customer groups that would benefit from its products and service, and it expects sales of Bt350 million within the first year of the newest branch’s opening.
Index plan to launch two branches each year. The Ratchaphruek branch was launched earlier this year, followed by the Kaset-Nawamintra branch, for a total of 19 so far.
In the first six months of its 2012 fiscal year, Index enjoyed more than Bt4.5 billion in sales, a 15-per-cent increase over that period in the previous year. The flooding catastrophe of 2011 forced many families to purchase furniture and home-decor products, which boosted sales, and special promotions enhanced this. Sales for 2012 are expected to exceed the original target of Bt8.6 billion.
 The Kaset-Nawamintra branch is divided into different zones offering the company’s affiliated brands, including Index Furniture, Winner Furniture, Trend Design, Logica and Built-in Kitchen, and the company’s comprehensive services, including Designer Specialist, Healthy Sleeping Specialist, Flower Specialist, Cooking Specialist and Kafe restaurant.
There are more than 10,000 products covering various styles in a South European Village setting to enhance the shopping experience.
The location offers convenient access from Prasert Manukij Road (Kaset-Nawamintra) and Pradit Manutham Road (along the Ekamai-Ram-Indra highway).
Kridchanok said that for the final six months of its fiscal year, Index would focus on a product-extension strategy, especially in home decorative products, after it has focused on the four-customer-segment plan with much success.
Currently, the sales ratio of furniture to home decorative products is 70:30. The goal is to shift that ratio to 60:40, and the company will renovate each store to support this change. It expects 20-per-cent growth in home-decor category.
The plan to add two branches per year in Bangkok and upcountry will cost the company about Bt500 million per store. Index plans to reach every region in the country, spending at least Bt300 million in marketing each year.
The company’s short-term goal over the next three years is to open five branches, and it has budgeted Bt2.8 billion for this endeavour.