IT City, an SET-listed IT retail firm, aims to achieve 10 billion baht in revenue this year by forging a partnership with Advanced Info Service (AIS), enhancing its online-to-offline channel, and promoting its own IT accessory brand Wise.
The company expects to stimulate demand for artificial intelligence (AI)-enabled products amid a challenging economy.
"We plan to offer digital technology products and services that enhance people's lives, rather than focusing on functional technology products," Sophon Intanate, president of IT City, told the Bangkok Post.
The integration of AI in computers and smartphones is improving people's lives, making them more convenient and increasing productivity, he said.
Mr Sophon said IT City will focus on marketing with consumers by using stories that appeal to them, particularly those aged 18-30, instead of promoting product specifications.
The company also established an exclusive partnership with AIS to offer benefits to customers of both firms. IT City customers can subscribe to new AIS mobile phone numbers and receive discounts on phones at IT City stores nationwide.
Existing AIS postpaid customers can earn discounts to purchase phones at IT City shops.
IT City customers who are AIS subscribers can receive extra benefits, such as discounts for buying other products in IT City stores.
In addition, the company has introduced its own Wise brand IT accessories with a two-year warranty.
The accessories provide a good profit margin, said Mr Sophon.
The company also partnered with Loga, a Thailand-based gaming gear brand.
Mr Sophon said the IT retail business is dynamic and the company needs to monitor sales every week in all the locations to get insights into user behaviour.
Customer retention and differentiation strategy helps the company survive, he added.
As of the third quarter of last year, IT City opened 10 new branches but closed 11 branches, leaving the company with 300 outlets in total, including several shops under its management.
Kasame Srilertchaipanij, vice- president for marketing at IT City, said the company plans to enhance its sales channels by allowing customers to seamlessly purchase and pick up products at any stores nationwide.
From the second quarter, customers can order and buy products via www.itcity.in.th for in-store pick-up.
This strategy aims to strengthen its e-commerce channel, which accounts for about 5% of its total sales, up 2% from 2023.
The company posted 6.7 billion baht in revenue in the first nine months of 2024.
Mr Sophon said that in 2025 the company hopes to grow its sales revenue by double digits, surpassing 10 billion baht.
In 2024, the top three product categories contributing to its total sales were smartphones and tablets (58%), IT devices (27%), and IT accessories (7%). In terms of profit contributors, the top three categories were smartphones and tablets (48%), IT devices (20%), and smartphone and tablet accessories (16%).
Looking ahead to 2025, the overall IT product market in Thailand is expected to continue growing, driven by new technologies such as AI, which has been integrated in various products.
The government's Easy E-Receipt scheme is also expected to boost sales in the IT market by at least two digits during the programme's campaign from Jan 16-Feb 28, Mr Sophon said.
Mr Kasame said that this year the IT market is expected to decline in value (-7.7%) and unit growth (-4%) compared with the first 11 months of 2024.
Last year the local smartphone market grew by 3.1% in value to 100 billion baht, while gaining 5.6% in units sold.