Siblings eye new heights for their family business

Founded by Boonchai and Kannika Jivavisitnon about 41 years ago, Wangkaimook is considered one of the biggest traders in the local pearl market with the main showroom for pearl ornaments being opened at Ratchathevi Road in Bangkok. The family started diversifying into the hospitality sector 27 years ago with its first small hotel, Patong Bayshore, being developed on Patong beach in Phuket after the family saw the long-term potential for tourism on the island.

Pobchai decided to study accounting in university because he saw the significance of knowing and understanding financial principles, which give him the ability to analyse and interpret financial statements and be able to communicate with outsiders such as bankers and building contractors. 

“My family realised that Phuket will offer a very promising future to the hotel industry,” said Pobchai, 36. “Consequently, they invested on Novotel Phuket Resort, in a four-star hotel, which is one of the first chain-hotels in the Patong area,” he said.

After graduation, Pobchai started work in his family-owned hotel, the 83-room Patong Bayshore. During that time, he learned and absorbed management knowledge and, at the same time, he also participated in running a large branded hotel – Novotel Phuket Resort. What Pobchai derived from those experiences resulted in Novotel Phuket Vintage Park, a 303-room resort spread over 10 rai (4 acres) in central Patong. This hotel is a collaboration of two generations of the family, using the proficiency of his parents combined with practical ideas of the new blood. Today, Pobchai runs two resorts with more than 500 rooms and both are leading hotels in Patong as well as the flagship hotels of the Accor group.

Pobchai said running a hotel is not easy, even for experienced people, because this industry tends to see fluctuations all the time due to internal and external |factors and the competitive environment.

The main principle by which Pobchai abides is the need to focus not only on profits, but also on the development of the Thai tourism industry. To do so, he puts the emphasis on positive impacts and aim to reduce negative influences from setting up the business, during construction until opening and running the resort, everything needs to be designed conscientiously.

As constructing a hotel is related to social responsibility and considerations such as the environment and neighbours in both the short and long term, handling waste, noise and dust during the construction process must be organised satisfactorily from the first day. This also includes putting in place energy saving systems and procedures that can be operated when the property is fully operational.

Both of the family’s resorts are expected to grow at least 5 per cent per year, with brand awareness and effective marketing tools making these properties leading hotels in Patong. Although they are managed by Accor, the owner still pays attention to every staff member at the hotels because it is important to keep the momentum to steer the business in the right direction.

“Finally, when an organisation wants to achieve its goals, it needs a vision and it is up to leaders to set and clearly communicate that vision, and to invite others to share and implement it. And in addition, if you want to go somewhere you have never been then you need a map, vice versa, to start or expand business,” said Pobchai. “Wise planning and cash flow are needed to have an edge over competitors. Hence, it is actions not words that provide the value,” he said.

Besides Pobchai, his younger sister Pamera is also in charge of her family’s first business – Wangkaimook. Pamera, 24, sees the growing potential of the pearl business, especially among the new group of teenage customers.

“Twenty years ago, our ‘base customers’ have always been aged 40 years and above. Now we expect the pearl ornament business to expand more in the teenage segment,” said Pamera. 

She said that marketing through social media was a vital tool to support the plan. This is because the new generation’s lifestyle depends chiefly on the Internet. Also, some of the product designs should be adapted to favour teenagers. 

“The benefit we see in gaining attractions from teenage customers is these customers will one day become high-spending customers and be able to purchase premium goods,” she said.

Even though Thailand’s consumption is sliding overall due to economic factors, some businesses are not really affected as their core customers are upper class, who are able to spend with ease. 

Wangkaimook has been in the jewellery business for 41 years and is the biggest trader in pearls. 

“However, we also need a marketing plan specifically designed for our core customers as they are major consumers. ‘Hanadama’ and ‘premium South Sea pearl’ for example will play a big role in serving those loyal clients,” she said.

Hanadama is the finest quality of Agoya pearl and every piece of Hanadama is certified by Pearl Science Laboratory of Japan. 

“Our goal is to distinguish Wangkaimook from other jewellery brands in Thailand by raising the brand’s luxuriance for those who yearn for perfection. This strategy would increase our sales volume by 10 per cent on average per year,” said Pamera.

She said premium product quality would be another strategy for the company. Every single pearl displayed at Wangkaimook store must be a beautiful and high-quality pearl that is carefully selected and is sold at a reasonable price. 

Wangkaimook is a major trader in the pearl market and that grants it bargaining power with its Japanese pearl suppliers. As a result, customers would get the best quality of pearl at a reasonable price, in |contrast with some shops that choose to sell low quality pearls at high prices.

“That is why Wangkaimook does not focus on the tourist market. The proportion of Thai to foreign customers is currently at 95 per cent to 5 per cent,” said Pamera.

She said that tourist products require additional cost to be paid to tour agents. Therefore, the shop would sell low quality products with unrealistic price in order to keep the prices affordable for tourists. It is, however, in contrast with Wangkaimook’s ironic concept to keep high product quality as priority.