SET-listed carpet and furniture maker TCM Corporation Plc (TCMC) aims for sales growth of 10% to 10 billion baht in 2019, eyeing exports of British furniture brand Alexander & James to the US to capitalise on a windfall from the growing trade war.
Pimol Srivikorn, chairman of TCM Corporation, with Mark Alexander Smith, founder and designer of British furniture brand Alexander & James.
TCMC chairman Pimol Srivikorn said the company plans to tap the US market this year by introducing Alexander & James, a British-designed furniture brand that TCMC acquired in 2016.
"The US-China trade war will benefit other Asian suppliers, including us," Mr Pimol said. "The economy in the US is improving and American consumers prefer designer furniture."
Last year, TCMC recorded more than 9 billion baht in sales, of which 80% was from exports of carpets and furniture and 20% from domestic sales of flooring carpet and carpeting and fabric for the automotive industry.
2018 sales were up from 7.6 billion baht in 2017 after the acquisition of a 75% stake in Britain's DM Midlands Group, including the furniture brands Ashley Manor, AMX and Alexander & James.
TCMC invested £40 million in 2016 for the acquisition. It has recorded annual sales of 5 billion baht from the three furniture brands and Alstons Furniture, which it acquired in 2015.
Mark Alexander Smith, founder and designer of six-year-old Alexander & James, said the brand aims to have sales growth of 20-25% this year, on a par with last year's.
The main market is Britain, accounting for 80%, followed by China and the Middle East at 5% each. The remaining 10% includes Australia, New Zealand, Hong Kong, Singapore, South Korea, Indonesia and Malaysia.
Last year the British-designed, Thai-made furniture was exported at a pace of 750-800 pieces a week, of which 80% were sofas and 20% were chairs. Prices ranged from 60,000 to 300,000 baht for sofas and 35,000 to 90,000 baht for chairs, Mr Smith said.
TCMC on Tuesday opened Asia's first Alexander & James flagship store on Sukhumvit Soi 39 with an investment of 10 million baht, aiming to showcase Alexander & James furniture and tap the Thai market.
The store introduced on-demand furniture that lets customers choose materials and colours to suit their own style. Production takes six weeks before delivery to customers.
"Thailand is a stylish market," Mr Smith said. "Thai people like design and want to be different. They spend a lot on furniture, from 126,000 to 200,000 baht for furniture in the living room."
Mr Pimol said TCMC expects to have 40 million baht in sales of Alexander & James in Thailand by the end of 2019 and over 100 million baht within the next few years as the brand taps buyers from the middle- to upper-end segments.
"We see rising demand among upper-end buyers in the residential market, a lot of new mixed-use projects and an expanding hotel sector," he said.
TCMC shares closed yesterday on the SET at 1.91 baht, up three satang, in trade worth 21.4 million baht.