Index Living Mall showed strong growth in Q3 and achieved the target of 4.6% growth or 7,258 MB. The next plan is to continue entering into partnerships with other companies to increase innovation and pushing big campaigns to boost the year-end sale. In addition, an investment of 165 million is planned to renovate four branches and to expand business through overseas franchising.
Index Living Mall emphasizes positioning itself as the leader in furniture and furnishing, closing with a revenue of 7,258 million baht in Quarter Three. For next year, the company is planning for an aggressive marketing approach by joining forces with leading companies in order to promote marketing campaigns, implementing innovative ideas that create personalized items, and launching seasonal campaigns during festive holidays to cover above and below line channels. Our strategy is to stay flexible based on the market situation and offer valuable products at affordable prices. The company aims to expand four more branches of Index Living Mall within Bangkok and other provinces, as well as selling franchises to emerging markets such as those in Indonesia.
Miss Kridchanok Patamasatayasonthi, Managing Director of Index Living Mall, reveals that in general the furniture and furnishing industry this year has experienced moderate growth. This is due to the fact that real estates in Bangkok and major cities especially those in destination cities show a positive growth from both Thai and foreigner consumers. Based on www.area.co.th statistics, it is estimated that real this year’s real estate sale is 480,000 million baht, 46% of which are houses and townhouses, while the remaining 54% are high-rise buildings. The new projects are worth approximately 430,000 – 440,000 million baht in total, which is approximately the same as last year’s. Players in the furniture industry are aggressively competing and executing different marketing strategies to boost demand especially during the last quarter of the year. It is estimated that the total market value of the furniture industry by the end of the year would be 80,000 million baht.
“Regarding the financial performance of Index Living Mall in the first nine month of 2018, our sales records a revenue of 7,258 million baht, which represents a 4.6% growth of the same store sales and meets our expected target. Currently, the company accounts for a market share of 20% in the total national furniture market. We have over one million Index Living Mall Joy Card members.”
“Those achievements are results of extensive marketing activities including various marketing campaigns, discounts, and promotions since early this year, including the opening of a new branch in Bangkruai-Sainoi in Bang Bua Thong, Nonthaburi. The new branch is the 29th store and opened in August this year. The store has over 7,000 square meters of areas located within a Tesco Lotus store in the Bangkruai-Sainoi branch. It is also the fourth store that we have been partnering with Tesco Lotus after those in Mahachai, Nakornsawan, and Changwattana. Another reason for our growth this year is the strategic partnership with strong partners to support our business including leading credit cards and financial companies, as well as real estate companies who are our partners and co-hosts in our marketing campaigns. The partnerships offer win-win benefits for both Index Living Mall and our partners. Moreover, we have adopted innovations in furniture products and services including areas such as materials, functions, and designs in order to personalize satisfaction and meet customers’ lifestyle. This is in response to new trends in living in urban city and more selective in buying furniture for 4.0-era consumers who not only focus on prices but also on distinctive design and function, as well as preference on customized products.”
“Most importantly, Index Living Mall selects “Kimberley Anne Woltemas”, a Thai actress, to be its first ambassador. She is not only a well-known actress, but also possesses a good reputation and a approachable premium-mass image. We have launched her as the first ambassador through a 90-minute commercial “Ital Smart”, which was created under the concept of “Must-have items, with nice organizing storages”, telling the story about smart life through innovation that allows closets to be more than just closets. This TVC targets customers in the 24-50 age group with a monthly income of more than 100,000 baht. The commercial has already been launched through TV and social platforms on 16 November.”
For the last quarter, Index Living Mall continues with its marketing activities through campaign and promotion of our valuable products through Time to Celebrate 2019 that is held during the end of every year. This year, we have invited Master Chang, Tossaporn Sritula, to introduce four auspicious gift baskets including Glory gift set priced at 590 baht, Prosperity gift set priced at 990 baht, Success gift set priced at 1,290 baht, and Wealthy gift set priced at 1,590 baht. On this occasion, there are over 30 gifts and household decoration items under the concept of “share a wish, share a gift” that we will launch until 9 January 2019.
- Next year’s planning to invest 165 million baht in refurbishing 6 branches
The company will continue its proactive marketing approach. This year, we have opened new branches as mentioned earlier and we have a plan to renovate six branches next year, including those in Ratchapreuk, Kaset-nawamin, Rangsit, Pattaya, Phuket and Udonthani. Among those branches, the Bangna branch experiences one of the high purchasing power. Therefore, the renovation will focus more on the high end market, featuring luxury goods with nice design and premium materials. The store will be renovated to offer more functional spaces that are easy to navigate and have beautiful design. There would be 11 design zones including Trend Design, The Luxury Edition, Ital Smart, Ital Living, Natural Living, Space Saving, Kitchen 4.0, Real House, Sofa Studio, Bedding Studio, and Perfect Sleep, which offer one stop service that provides a healthy sleep solution and an innovative service of bedding for over 100 items, including mattress, pillows, sheets and accessories for different body structures. We are also the one and only official distributor who imports premium US bedding – PureCare.
- Expand four more branches next year including in and out of Bangkok and grow business overseas as franchise
Currently in our portfolio, there are 29 branches of Index Living Mall throughout the country, six of which are Furniture Centers, four are Trend Design located in Bangna, Kaset-Navamin, Phuket, and Pattaya, three are Momentous – multi living stores at Paragon Department Store, one is Index Living Mall in Phuket, two are BoConcept at Paragon Department Store, and one is Index Living Mall in Pattaya. Altogether we own 44 stores.
In 2019, we plan to expand 4 more branches in Bangkok and other provinces including Chaiyapreuk, Chantaburu, Ramindra and Sukhapiban 3. In our overseas operation, we will expand two more franchises in Jakarta and Bali in Indonesia. The Indonesian furniture and decorative items retail segment has shown a positive growth. Major contributions are the country’s large population size, as well as the steady growth in the Indonesian economy, per capita income, and consumer behaviour. Therefore, growing Index Living Mall business in overseas markets are likely to be possible through giving out franchise to local businesses. We have also conducted a study on overseas markets and the potential of business growth in other countries to reduce investment risk. We found that countries with the highest potential for investment are those within ASEAN.
“We have to prepare ourselves to be ready to adjust according to uncertainty. Our core value is to offer valuable products at affordable prices. It is the direction that Index Living Mall will move forward full-steam from 2019 onwards. From now on, we will focus more on customers’ pain points so that we can offer the product that address those points as a customized solution for all customers. We will also strengthen our space utilization through Younique concept – the customized furniture 4.0 that allows customers to design their own furniture. Younique therefore offers both personalized and customized furniture and design. This concept is very unique and will never be duplicated with anyone else. So far, Younique has generated a sale volume of over 255 million baht after its launching a year ago. Such growth reflects a good response in the customization segment. Given that there are positive signals in Thailand’s public transportation infrastructure development (2015 – 2022) especially in numerous public electric train lines and the possibility of the general election in 2019, there are supporting factors for the growth in real estate and furniture” Miss Kridchanok Patamasatayasonthi concluded.
The key success that makes Index Living Mall to be customers’ top choice is a market study within Thailand that shows consumers’ behaviour and allows us to have insight information. Such insight is crucial to developing brands and products that truly respond to consumers’ needs. We are truly a one stop shopping center, just like our slogan that says “one stop shop for every housing need – complete (with all items needed), done (at one stop) and worth (the money)”. Our 360 integrated marketing communications cover multiple platforms that include online and offline channels. We have created a truly hit content stories with 4Is concept including inspiration, information, interaction, and influencer. There is a variety of products and services of over 30,000 items. Furthermore, we have included an alternative shopping channel through e-commerce via www.indexlivingmall.com that is in line with customers in 4.0 era. It can be stated that the overall business for Index Living Mall is growing steadily, and will be one of the top furniture companies in Thailand.
