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Chain offers to assist with designing shops
PITSINEE JITPLEECHEEP KRISSANA PARNSOONTHORN
CHON BURI : Index Living Mall Co, the country's largest furniture and decorative product retail chain, is targeting the small and medium enterprise market as a new customer base.
The company has set up a new department called Index For SMEs to provide design advice to entrepreneurs who want to open businesses such as coffee shops, barber shops, bookshops and fashion boutiques, said managing director Kijja Pattamasattayasonthi.
Index has begun the service at its new outlet in Chon Buri, showcasing coffee shop and boutique mock-ups that demonstrate how its furniture and decorative items could fit anywhere, not only in residences, based on each customers' budgets and tastes.
''If an SME operator wishing to open a shop uses our Index For SMEs service, he or she can save by 30% when compared to the cost of hiring designers and contractors,'' Mr Kijja said.
For example, a coffee shop with 38 square metres costs about 200,000 baht for full installation of decoration, furniture and accessories _ or half that price if floor tiles and wall de{aac}cor are excluded.
Mr Kijja said Index was branching out because the SME market was growing steadily in light of increased government efforts to promote small businesses.
Index would start offering the Index For SMEs service at its new Bang Na outlet scheduled to open in the fourth quarter next year. The 10-rai site would have 22,000 sq m or sales space, becoming the largest store for Index.
Mr Kijja said Index would continue expanding despite the sluggish economy as he saw opportunities remaining in the market. The weekend opening of 550-million-baht store in Chon Buri, which occupies 15,000 sq m, has made Index Living Mall Asia's largest furniture and de{aac}cor chain with total space of 200,000 sq m.
At the Chon Buri outlet, Index provides the Total Living Solution service with experienced marketing staff, and customers can test and try furniture before making a purchase decision.
Next year, Index plans to open three additional outlets with a combined investment of 1.65 billion baht. The three are in Koh Samui, Nakhon Ratchasima and in Bang Na in Bangkok.
Mr Kijja estimated the company's first-half revenue at between 3.5 billion and 3.7 billion baht, up about 7% from the same period last year, of which 65% came from local sales and 35% from exports. Because oil prices and material costs have risen sharply since the start of this year, its operating costs have increased 30% on average. Index raised most of its prices by 10% a month ago.
''Our production has had some effect from soaring oil prices but we have implemented various measures to save costs by improving cost management and production efficiency,'' said Mr Kijja.
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