Index invests for boost in revenue to Bt10 billion

The company also looks to join forces with international partners following its overwhelming success in Malaysia with Aeon.

Aggressive marketing campaigns will be run this quarter, highlighting seasonal promotions for New Year, Valentine’s Day and Chinese New Year, managing director Kridchanok Patamasatayasonthi told a press conference yesterday.

Last year, the company’s revenue climbed 5 per cent to Bt9 billion, she said.

The home furnishings and accessories market was stable last year because of the slowdown in the real estate market, especially in Greater Bangkok. Also, while many retailers developed campaigns to stimulate sales, the political and economic situation still impacted customer sentiment.

However, primary cities and tourist destinations continue to show promising signs. Last year, the home furnishings and accessories market was estimated at Bt70 billion-Bt80 billion.

This year, Index Living Mall sees growth in the market driven by rising purchasing power upcountry, as manifested by growing demand for real estate in major provinces such as Phuket, Surat Thani, Hat Yai, Hua Hin, Chon Buri and Rayong.

Last year’s performance by the company was driven by the launch of four branches in Nakhon Sawan, Nakhon Ratchasima, Pattaya and Mahachai.

It boasts the largest home furnishings and accessories specialty chain in the country with 21 stores. Phuket, Chiang Mai and Pattaya posted strong growth with average customer spending of Bt20,00 per visit.

Internationally, Index Living Mall has introduced a franchised branch in Russia, in Barnaul city – the administrative centre of Altai – and has conducted a feasibility study on another location.

Its first store in Malaysia, a joint venture with Aeon Malaysia, covers 6,800 square metres of retail space at the IOI City Mall in Putrajaya, a key federal administrative centre. The store was warmly welcomed by customers thanks to the uptrend of the real estate market, with targeted sales of Bt350 million.

The company plans to roll out 30 branches throughout Malaysia within 15-20 years.

This year, the economy will grow marginally, so businesses will need to employ effective marketing strategies to help stimulate sales, while the political and economic situation will be closely monitored.

According to the Government Housing Bank’s Real Estate Information Centre, the real estate business will continue to grow by 5 per cent, subject to there being no political and global economic uncertainty.

As they are closely linked, the home furnishings and accessories business will also benefit, and the positive political climate will improve consumer spending.

The condominium and office furniture segment promises stronger market growth than the single family home and townhouse segments. This year consumers are expected to place importance on function, design and value for money.

Taken together, these factors indicate that entrepreneurs will need stronger sales promotion activities.