After woes, King Power eyes sales hike

The firm had been hit with unexpected events that undermined tourist confidence, including the military coup, political demonstrations between red- and yellow-shirt groups and last year’s devastating floods.
The biggest blow came from the temporary closure of Suvarnabhumi by yellow-shirt demonstrators, vice chairman Chulchit Bunyaketu said yesterday.
However, if the political chaos is repeated, it may undermine the company’s sales target.
It also runs duty-free shops in Phuket and Chiang Mai. The Bangkok duty-free store is considered as price-competitive with regional rivals, being 5-10 per cent cheaper.
King Power has 400,000 active members, with Thais the major customers at 27-28 per cent, followed by the Chinese at 25 per cent. The financial crisis in Europe has not dented sales so far. Most Western travellers are spending less on shopping as their budget is used to cover necessary expenses.
The firm will continue to focus more on Asians, especially from India, South Korea, China and Japan, Chulchit said. The reason is that they have more purchasing power, especially the Chinese. Their average spending at King Power duty-free shops has jumped to Bt4,000 from Bt800 in recent years. Chinese shoppers like to buy branded products.
To attract Chinese people, the firm is looking for new imported brands to offer. It is also expanding its local customer base by introducing international brands such as Prada, which will be launched in the near future. And it will form relationships with corporations to boost the number of shoppers.