The IT retail market is expected to see a robust recovery with a strong growth of 10% next year, with smartphones, wearable devices and online shopping the key drivers of growth, says a leading IT chain store.
Global research firm IDC Thailand, meanwhile, forecasts the local IT hardware market — including mobile phones, personal computers, tablets and printers — is expected to be worth US$6.9 billion in 2015.
Sura Khanittaweekul, chief executive of Com7 International, said the local IT retail market was likely to see zero to low single-digit growth this year, due mainly to the political impasse and sluggish economy.
"But the market is expected to see double-digit growth in 2015, fuelled by continued strong sales of smartphones and wearable devices," he said.
Com7 expects revenue to grow by 15% to 17 billion baht next year, outpacing the forecast industry growth, helped by aggressive expansion plans to tap potential upcountry.
The company has earmarked 350 million baht to add 66 shops nationwide, bringing the total to 367 next year.
The budget includes construction of the modern-style Banana IT shop targeting high-end customers. The shop is scheduled to open in March.
An additional 150 million baht will be used for marketing.
Com7 operates iStudio, Banana IT, Banana Mobile and iCare.
Mr Sura said more consumers were purchasing IT products at shopping malls, instead of Bangkok's famous electronics mall, Pantip Plaza.
Based on an internal study, 78% of 1,000 respondents purchased IT products at shopping malls this year, up from 65% in 2012.
"IT chain stores with large shops situated in prime locations and generating revenue of up to 2 billion baht will face even more difficulties next year due to increasing inventory costs and changing consumer purchasing patterns," Mr Sura said.
Com7 will expand into the small and medium-sized enterprise market next year as the corporate sector represents up to 40% of the local IT market and individual customers account for the rest.
"We aim to double our corporate revenue to 16% of the total next year, helped by promotional campaigns and offering credit to companies as part of the terms of a purchase agreement," he said.
Mr Sura said the company planned to introduce its online shopping website www.mangoshopping.com by September next year, in order to capitalise on the burgeoning online shopping market. The move will offer aggressive discounts and provide a greater variety of products.
"We expect the online shopping channel to generate 30 million baht in revenue for us next year," he said.
Com7 plans to set up a subsidiary operating under the Mango brand, selling mid-to-low product ranges upcountry.
It expects revenue to grow by 10% to 14.9 billion baht this year, short of the initial target of 17 billion, thanks to political crisis and the delayed launch of Apple's iPhone 6.
Profit is likely to increase by 10-15% this year, up from 202 million baht in 2013.
Mr Sura said smartphones had become the company's largest revenue generator, accounting for 27% of the total, followed by notebooks at 25%.
"We aim to list on the stock exchange by June," he said.