FADING FAST
Single-digit gain seen for computer sales
The domestic computer market will shrink to single-digit sales growth in 2020, says Advice IT Infinite.
The domestic computer market will shrink to single-digit growth in 2020 because of the economic downturn and cheaper gaming computers, says Advice IT Infinite, an IT retail chain.
The firm aims to list on the stock market in the third quarter of next year, build its own product brand and explore new online channels.
Chukkrit Watcharasaksilp, chief of sales and marketing at Advice, said the company had 13 billion baht in sales this year, up 5% from a year earlier, falling short of a 10% growth target.
“This year is the first time Advice missed a sales target,” Mr Chukkrit said.
GFK Retail and Technology Thailand, a market research firm, said that in the first nine months of 2019 the local notebook market fell by 8% in revenue and 7% in units sold from the same period of 2018.
Despite strong growth in the gaming notebook segment, the average gaming notebook price fell from 35,000 baht to 25,000 baht as computer makers introduced a series of new products with more affordable prices for users, Mr Chukkrit said.
The desktop segment fell by 10% in terms of units and 22% in revenue, while printers dropped 22% by units and 16% by revenue.
Next year the local computer market will likely contract because of unpromising global and domestic economies, Mr Chukkrit said.
Advice is hopeful that more government spending and computer purchases by Generation Z and corporations will shore up sales, he said.
To achieve the 10% growth target, Advice will invest in new branches in Bangkok and surrounding suburbs, including those in major department stores in collaboration with Central Group and Power Buy.
Central and Power Buy will give Advice an opportunity to tap customers with medium-to-high purchasing power through The 1 Card programme, which has 10 million members, as well as instalment payment programmes.
Advice also plans to renovate and increase space for existing potential branches, as well as manage retail shops for computer makers like Asus and MSI.
Mr Chukkrit said Advice has 400 branches, of which 122 are owned by the company and the rest are franchises.
Some 14 new branches are expected to open in 2020 at a total cost of 40 million baht, he said.
The company’s branches upcountry remain strong in terms of sales.
“We still need to grow in Bangkok,” Mr Chukkrit said.
The firm will expand sales opportunities online through a website and a mobile app.
For 2019, the company’s sales via the online channel grew by 30% to 1.5 billion baht. Online sales are projected to reach 2 billion baht in 2020, Mr Chukkrit said.
The company also aims to boost sales via e-marketplaces with strategic partners.
In 2020, half the company’s revenue is expected to come from retail, driven by more new shops, up from 45% in 2019.
Advice aims to form join ventures with partners from Myanmar and Cambodia to conduct business in those countries, Mr Chukkrit said.