Com7 raises expansion spending by 27%
SET-listed IT retail chain Com7 Plc will spend 380 million baht on expansion this year, rising 27% from 300 million baht spent last year, thanks to constantly growing smartphone sales.
Smartphones are Com7’s major revenue generator and the company targets revenue growth of at least 15% this year from 20 billion baht in 2017, said chief executive Sura Khanittaweekul.
The domestic retail market for mobile handsets and IT is still promising, driven by a variety of product launches and promotional campaigns of its partnerships.
“The target of 15% growth is a conservative figure because in only nine months of 2017 the company booked total revenue of 15.4 billion baht, a 30% increase from 11.8 billion over the same period in 2016,” he said.
Com7 has not yet reviewed its 2017 financial statement for full-year operations.
The outlay of 380 million baht for business expansion this year will comprise 220 million for new store expansion, 60 million for existing store renovation, 50 million for marketing activities, 20 million for IT systems, 20 million for online business, and 10 million for franchise business.
Com7 operates distribution business in retail market with a number of outlets under the names of BaNANA IT, BaNANA Mobile, iStudio, iBeat and U store. The company also operates wholesale and retail of global and local brands, comprising Apple, Asus, Acer, HP, LG, Lenovo, Nokia, Samsung, Sony and Toshiba.
Mr Sura said the company will increase the number of its retail stores from 434 in 2017 to 600 stores this year.
Those shops which are co-managed with True Corp, numbering 68, are further set to rise to 100 in 2018.
Com7 and True Corporation have had an agreement on distribution and sales since 2016. True outsourced Com7 to comanage its service centre shops, which operate in modern trade stores such as Big C and Tesco Lotus nationwide.
Mr Sura said customers can experience all-in-one services where Com7 and True bring hardware, network and content altogether to meet digital lifestyles, making the daily lives of customers more convenient.
Com7’s major revenue contributor is its smartphone business at 49%, followed by 20% from laptops, accessories (16%), tablets (12%) tablets and desktops (3%).
Mr Sura said the value of smartphone sales grew rapidly year-on-year.