Thai Watsadu remains conservative on expansion
THOUGH THE construction industry is expected to grow this year, Thai Watsadu, a supplier of home decor and construction equipment under the Central Group, is still conservative when it comes to expansion even though it is targeting 10-per-cent growth to B
“Under this year’s plan, we will only open one new branch in the Rama II area in September with an investment of Bt600 million after adding two branches last year, because we choose to take a cautious approach,” Kamchai Louiyapong, vice president for marketing at CRC Thai Watsadu, said yesterday.
In line with 5-year plan
He explained that this conservative move was in line with the company’s five-year investment plan after it invested aggressively in the first four years of operation. In the early stages, the company spent between Bt4 billion and Bt5 billion to open about 10 branches a year.
However, with the change in its investment plan, the company will now focus more on renovating existing branches to help enhance consumers’ shopping experience and refresh its brand image. Hence it has earmarked at least Bt400 million for the renovation of four branches in Lampang, Buri Ram and Surin provinces as well as in Nonthaburi’s Bang Bua Thong district.
In line with Thai Watsadu’s key marketing strategy, which is to expand its customer base, the company yesterday announced that it was partnering with Central Group and merging its customer relationship management (CRM) programme under the 1 Card.
Under this deal, the two |sides launched “Build Happiness within 1 Card” with the aim of boosting Thai Watsadu’s customer base, which is currently 1 million strong.
“After the merger, Thai Watsadu members will be able to redeem and collect points just like the other 12 million 1 Card members by spending at any of Central Group’s nine businesses, such as the Central department stores, Robinson, Tops and so forth.
The 1 Card members can |also earn points by making a purchase at Thai Watsadu,” said Rawee Puapornpong, senior vice president for CRM of Central Group.
Kamchai said that driven by the government’s stimulus packages to boost the real-estate industry and the expansion of the MRT Purple Line in Bangkok, the Bt300-billion construction industry and related business would see at least 5-per-cent growth after remaining stagnant last year.
He said Thai Watsadu hoped to make the most of this projected growth and was targeting revenue of Bt20 billion, a 10-per-cent rise from last year.
