From the fields to the front line of tech retail

From the fields to the front line of tech retail

Somyot Chaowalit left a hardscrabble life behind to start JIB Computer Group.

Mr Somyot says JIB plans to list on the stock market in the next few years.
Mr Somyot says JIB plans to list on the stock market in the next few years.

Life may have been tough in the early years for Somyot Chaowalit, whose previous occupations include farm labourer, temple boy and muay Thai fighter. But today he's the billionaire at the helm of JIB Computer Group Co, one of the leading computer and IT equipment retailers in the country.

The company raked in 8.97 billion baht in revenue last year, making it the country's third-biggest player in the industry.

The 47-year-old from Nakhon Si Thammarat recounts the hardship he endured when he was young, as his parents were labourers who leased a small portion of land for a small shack to live in.

He says his mother worked any jobs she could to make ends meet, including harvesting rice and removing coconut husks, and he had to accompany his mother to do the jobs.

"As my mother was hired to plough rice fields, I had to manoeuvre the ploughing machines," Mr Somyot says. "That was a tough job which required so much physical force."

Life grew even harder when his father left the family, making his mother take care of her four children on her own. Mr Somyot is the second child and first son.

TWO YEARS A NOVICE

As a young man, he heard that if he were ordained, his mother would go to heaven, so he decided to enter the monkhood.

During that time, his grandfather, a monk in Bangkok, visited the family and invited Mr Somyot to be ordained at Wat Hong Rattanaram in the capital.

After spending about two years as a novice monk, one day he heard Phra Phayom Kalayano, the famous abbot of Wat Suan Kaeo in Nonthaburi, mention that many men who are ordained leave their family in hardship. That was the turning point at which he decided to leave the monkhood.

Mr Somyot went back to his hometown to help his mother with work while undergoing non-formal education in the evening.

Upon finishing Mathayom 3, grade 9, he wanted to pursue his studies, but the idea was spurned by his mother, who wanted him to continue working for the family.

"I felt I wanted to continue studying," Mr Somyot says. "I believed that studying would help me end up having a better job than labour work."

He left home again and stayed with his grandfather at Wat Hong Rattanaram as a temple boy, giving him the chance to study Mathayom 4-5 at Suan Anan School.

"I had no money at that time, as my mother did not send me any money," he says. "Most of the time I had to walk to school over a distance of two kilometres every day. I didn't have lunch at school because I had no money. After school finished at two or three o'clock, I went back to the temple to have a meal."

During his studies, he went to see a friend at a muay Thai gym and became interested in the sport. That was the starting point for his next journey as a boxer. He fought about 20 bouts at various venues, including the prestigious Samrong and Rajadamnern stadiums, and lost only two.

"I trained so hard at that time," Mr Somyot says.

TECH TRAINING

After finishing high school, he chose to study computer business at Thonburi Vocational College after getting to know computers from a temple mate.

"He showed me computer books and talked about computers, so I was fascinated by it," Mr Somyot says.

The more he studied the subject, the more he fell in love with it.

"I was able to write computer programs," he says. "I felt so proud to be able to control the computer's screen the way I wanted."

Mr Somyot graduated from college with a GPA of 3.92, earning him a chance to work at Siam Commercial Bank. He joined SCB as a credit officer in 1993, the year he quit boxing.

In his eight years at the bank, he helped program computers to handle work processes.

"The bank has a huge amount of data on the server," he says. "I used a program to divert information to my computer so I could analyse this data for my superiors."

Mr Somyot also enjoyed fixing computers for his colleagues, who were quick to ask his advice on buying computers. This gave him the idea of making money by providing comprehensive services.

He offered to design computer specifications to suit customers, buy the computer sets and provide after-sale services for a commission fee. "Word of mouth led many people to buy computers with me," Mr Somyot says.

He quit his bank job and in July 2001 opened his first computer shop, called JIB (after his own nickname), in Zeer Rangsit, a shopping centre in Pathum Thani, using startup capital of 200,000 baht from his SCB provident fund.

Mr Somyot says he spent a lot of time talking with customers, advising them on the appropriate specs for their needs and earning their trust.

"It became word of mouth and customers kept coming to my shop," he says.

He opened another shop three months later, gaining further popularity among buyers.

Profits from the shops were used to open more shops. The number of branches jumped after Mr Somyot was able to secure loans from a bank.

MARKET SHIFT

But the business began to feel the pinch in 2010 with the prevalence of smartphones, which ate into the basic computer market. The situation was worsened by fierce competition, leaving only a small margin to obtain. The predicament made him think about creating brand awareness.

Modern-styled Mine shops were the answer, carrying middle- to high-end products such as gaming gear. JIB's logo was changed to have a more cutting-edge look. Mine shops raked in handsome profits, though their interior decorations were costly.

Today there are 12 Mine shops. They are among the company's 146 branches in 52 provinces nationwide.

The company's earnings surged 56.8% to 8.97 billion baht between 2014 and 2018. "I think part of this is because of branding," Mr Somyot says.

As new IT equipment streams into the market, the company's workers undergo training by suppliers and by JIB itself.

The company entered the online business five years ago and now takes in 100 million baht a month from that channel. "This accounts for 12% of total sales, and the trend is on the rise," Mr Somyot says.

JIB also tries to set itself apart from rivals by offering exclusive items like high-end monitors.

According to Mr Somyot, the company plans to list on the stock market in the next few years, with the money raised to support technology employed by the company, including robots and automation.

JIB also aims to set up a warehouse in the centre of Bangkok to ensure delivery within three hours without charge in the capital and its vicinity.

Further afield, plans call for expanding into some neighbouring countries, including Laos and Myanmar.

DRAWING ON EXPERIENCE

Looking back on tougher times, Mr Somyot says he's not afraid of hardship anymore.

"I learned calmness and focus after I was a novice," he says. "It also facilitated my thinking process. I am always thinking how to make things better. When I keep thinking, I normally come up with an idea accordingly. Just do not stop thinking."

Mr Somyot says boxing helped him learn to prepare himself for whichever competitor he faced.

"My bank experience also helped me in terms of management, particularly business reports; I am a CEO that likes reading reports," he says, since they shed light on how business is going.

Regarding some salarymen who may be afraid of leaving their jobs to start their own business, Mr Somyot says capital and competition are the two big hindrances that keep people from starting a business.

"Don't think about it," he says. "Just think about doing something that you love. JIB did not think at the beginning that we were going to be big. We just wanted to start with a small computer shop that would provide customers with something different than the others.

"When I left the bank, I thought it would be okay if I made as much as I received when I was a salaryman. More than that would be a bonus."


BIO DATA

Somyot Chaowalit
Age: 47


Education
- High vocational certificate in computer business, Thonburi Vocational College

Career
- 2001-present: Chief executive, JIB Computer Group Co
- 1993-2001: Credit ocer, Siam Commercial Bank

Family
- Married with two children

Hobbies
- Travelling to natural destinations

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