Com7 aims to power up as IT competition intensifies
Major IT chain stores are gearing up for an acquisition spree as they strive to survive in a mature retail market and adapt to rapidly changing consumer behaviour, says a leading retail IT distributor.
Broadening IT product lines and penetrating into untapped product segments are also key strategies for the next growth level, said Sura Khanittaweekul, chief executive of SET-listed IT retail chain Com7 Plc, the operator of IT shops under the Banana IT and Studio 7 brands.
Thailand’s retail IT market was worth 160 billion baht in 2016, while the local smartphone market was valued at 500 billion, said Mr Sura.
Com7 expects to maintain double-digit sales revenue growth of at least 10% to 17.2 billion baht in 2017, up from 14.9 billion last year.
To achieve that target, he said Com7 is gearing up for the next growth level by potentially acquiring new companies that complement its core business.
“We expect to settle an acquisition deal with a prospective company by June,” said Mr Sura. But he declined to elaborate further on that deal.
Com7 also plans to spend 200 million baht on increasing the number of its Banana IT shops by 50 this year, bringing the total to 500.
He said the company will also spend another 40 million baht opening at least five camera shops under a new brand by year-end, as the drive to capitalise on the local camera market, worth 8 billion annually, continues.
Com7 expects its sales revenue from smartphones to reach 3 billion baht this year, up from 2 billion last year.
Mr Sura said he expects to see a recovery in the local computer market, particularly the notebook segment, which is expected to grow by 7-8% this year. That growth is being driven by the WannaCry ransomware outbreak, which is stimulating the replacement market, with people increasingly looking to buy new computers to replace ones with outdated operating systems.
He said Com7 is also focusing more on selling its products via its online channel, bananastore.com, which targets teen users.