Central boss confident of 12% growth
Central Group is on track for 12% year-onyear growth in 2018, driven by strong sales, new initiatives and expansion domestically and overseas, says chairman and chief executive Tos Chirathivat.
The group also finds the government’s policies highly beneficial, especially those related to transport infrastructure.
Central attributes the group’s positive performance in the first half of the year to elevating the customer experience both at brick-and-mortar stores and on the digital platform.
The group introduced Central Chat & Shop, a new omnichannel shopping platform connecting customers and service staff via Line.
PowerBuy’s online sales tripled from the previous year from the launch of the new omnichannel website, leading to double-digit growth in the home and hardline categories.
Furthermore, Central Pattana’s first three residential projects in Khon Kaen, Chiang Mai and Rayong started bringing in revenue from transferred units.
A boost in Thailand’s tourism sector has also bolstered Central Plaza Hotel’s revenue from the food and drink and hotel segments.
Central Group’s good results are due to various economic policies and measures launched by the government to boost the economy, promote tourism and improve communication and transport infrastructure, Mr Tos said.
In the second h a l f , C e nt ra l Group is set to launch the luxury Central Festival Phuket Phase 2, with the Tribhumi theme park and Aquaria, the biggest aquarium in Thailand, and Jingjai Farmers Market in Udon Thani selling locally sourced fresh organic produce, as well as an updated version of The 1 Mobile Application.
The Central-JD partnership, which had a soft launch in June, is aimed at strengthening Central’s position in transnational e-commerce. The grand opening is scheduled for next month.
Up to 4,000 brands carrying more than 500,000 items will participate in the platform with special deals and promotions.
As JD Central Thailand will be listed on JD.com’s international website, participating brands and merchants will also receive exposure and opportunities to sell to the massive Chinese customer base, facilitated by JD’s world-class fulfilment and logistics infrastructure for exports.
“Online sales penetration grew sharply as a result of our omnichannel and ondemand push, which will continue to grow strongly with improving logistics infrastructure and networks,” Mr Tos said. “The government’s agenda to put emphasis on transport infrastructure with a biggestever investment budget of over US$100 billion [3.3 trillion baht] is seen as a positive factor.”
The planned motorway extension, along with development of high-speed trains, efficient logistics and Eastern Economic Corridor projects, will provide a solid foundation for expansion of the service sector in the coming years, he said.
“This infrastructure investment is critical because it will boost economic growth in the service sector and shift people out of low-income agriculture jobs that still employ over 20 million people,” Mr Tos said. “This is a key to moving Thailand from a middle-income to a high-income country in the future.”