Com7 eyes 30% share of IT market in near future
Com7, a SET-listed IT retail chain, targets a 30% market share of the 100-billion-baht IT market in the near future, up from 15% at present, driven by the addition of new shops and online sales.
The company also diversified its reach to smart home appliances to capture the growing segment.
Com7 is working with Index Living Mall, the country's leading seller of furniture, to sell smart home appliances at Index stores.
"For this year, we believe the Thai economy has reached the bottom. Although the pandemic has affected many sectors, IT and mobile phone segments have gained as more people are working and studying online," said Sura Khanittaweekul, chief executive of Com7.
By the end of this year, the company expects to have 1,000 shops across the country. Com7 plans to have 1,500 shops over the longer term.
Com7 set a goal of achieving a 30% market share in the near future.
"The addition of new shops and online sales channels should help the company reach this goal," he said.
The firm is focusing on opening more standalone shops instead of relying on malls, which face frequent closures with the pandemic.
"We learned a lesson from the pandemic and we have to diversify our risks," said Mr Sura.
Physical shops are still needed to serve the "online to offline" strategy where consumers can order products online and pick them up at stores, he said.
Online sales contribute 6% of the firm's revenue, with the proportion expected to rise to 10% next year, said Mr Sura.
The company's new niche is other electronic products, such as smart TVs and microwaves.
"Eventually, we will see a convergence of IT and consumer appliances," he said.
The firm expects to become the market leader for online sales of IT and electric appliances within two years, Mr Sura said.
Com7 projects posting record high earnings in the fourth quarter, driven by the launch of the new iPhone 13 series as well as the iPad Mini and Apple Watch.
Smartphones account for more than half of the company's revenue.
Com7 expects revenue growth of 15-20% this year.
The company's profit reached 1.1 billion baht in the first half this year, up 104% year-on-year.
Mr Sura said concerns remain about supply shortages and the weaker baht, which have pushed up the prices of IT products.