JAS Asset gives IT Junction a fresh look
JAS Asset, the IT retail rental space and mall operating arm of SET-listed Jay Mart, is looking to give its IT rental zoning a facelift this year as it strives to adapt to consumers’ digital lifestyles, aiming to increase sales.
“We expect to begin a pilot renovation project at a few of our 52 IT retail spaces under the IT Junction brand this year,” said Suphot Wanna, chief executive of JAS Asset.
The company will have to discuss the renovation project with Big C Supercenter, the home of its IT Junction, before it can start, he said.
JAS Asset has 12,000 square metres of rental space at 52 locations, mostly in Big C Supercenters and Pantip Plaza Pratunam.
Mr Suphot said the company plans to spend 60 million baht to open an additional eight branches of IT Junction at Big C stores this year.
“We expect our revenue to increase by 10-15% in 2017,” he said.
Even though the smartphone market in Thailand has reached maturity, Mr Suphot said the replacement phone market is lucrative given the replacement cycle for smartphone averages 12 months, thanks to aggressive trade-in promotions.
After the renovations are complete, he said JAS Asset expects sales value from vendors who rent space to increase from the current level ranging from 800 million to 1 billion baht per month. Half of total sales stem from second-hand or trade-in phones.
To survive in the retail handset business, vendors must effectively manage their inventories and cash flow, said Mr Suphot.
Selling a second-hand handset phone provides less than 100 baht in profit, he said, compared with a profit of 5-8% on a new phone sale.
To stimulate consumption in a sluggish economy, Mr Suphot said JAS Asset joined with a few Chinese phone makers — Oppo, Huawei and Vivo — as well as mobile operator Advanced Info Service to jointly hold a 20-million-baht lucky draw campaign. The event is to celebrate the 17th anniversary of Jay Mart.
The lucky draw campaign is expected to generate at least 20% of total sales volume for the company this year.
He said JAS Asset expects revenue from IT Junction business to account for 60% of total revenue in 2017, down from 70% last year as its new property business contributes more revenue to the company.
JAS Asset operates three community malls in Bangkok: The Jas Ramintra, The Jas Wanghin, and the Jas Urban Srinakarin.
The company also tipped its toes in the condominium market last year by building a low-rise condominium, Newera, worth
500 million baht.
Mr Suphot said JAS Asset plans to spend an additional 1.4 billion baht in 2017 for construction of a new condominium, new IT Junction outlets, and acquiring new land plots for construction of a community mall.
“We expect our revenue to increase by 30% this year thanks to full operation of the Jas Urban Srinakarin,” he said.