Many shopping malls, household Stores and furniture outlets are planned to expand or be developed in anticipation of an increased customer base with the take up of condo developments and housing projects around the Region.
Land & Houses (L & H) announced has established a property fund of over 10 billion Baht to expand Home Pro Hua Hin and to build a new shopping complex – Fashion Island. At the same time, Boonthavorn, a leading centre for household accessories and kitchenware, will expand its existing Index Living Mall and open a new branch, costing a total of 100 million Baht. Other businesses such as The Mall Group, Prau Group and Pena Group are also on the move. Centres for household accessories and furniture such as Home Pro, Bunthavorn, Index, Thai Watsadu and Chic Republic are making huge investments to accommodate fast growing property business, particularly condos, villas, hotels and resorts, which has been booming and mushrooming since 2012.
A recent resolution made by the Department of Public Works and Town and Country Planning is to improve and expand Hua Hin’s city area from 97 to 171 square kilometres with advanced infrastructure and transportation standards. A survey has recently revealed fierce competition between many retailers in the city.
According to a source from L & H, Home Pro (an affiliate) has bought a 30 Rai land plot in Cha-Am. This land, located not very far from Regent Cha-Am and Thai Watsadu, will be the site of a new Home Pro Mall and a new shopping complex worth a total of 5-6 million Baht.
“Previously, we considered the possibility to build another Terminal 21 but now the preference is for a Fashion Island outlet. At the beginning of this year, a senior executive of L & H, Mr. Suang Chaisurot, was transferred to look after Fashion Island. It is anticipated he will take care of a new branch of this shopping mall.” said the Managing Board Member of L & H, Mr. Adisorn Thananannaraphul. He added that in the near future the company would increase its business, especially with shopping malls, hotels and service apartments in Cha-Am as one of the most interesting areas to do big business.
The company is ready to establish a property fund of over 10 billion Baht. This will be derived from merging the company’s two big shopping malls: Terminal 21 in Bangkok and Hua Hin Market Village in Hua Hin. This fund will result in more property projects.
The source also reported that L & H’s Home Products Centre Public Company Limited, which has been established in Hua Hin since 2006, has seen a change in consumer behaviour towards boutique shopping. With 38 branches outside Bangkok, Home Pro Hua Hin enjoys a top 5 or 10 ranking of the highest sale per month. In 2012 its turnover reached 540 million Baht with 370 million Baht in the first 8 months of 2013. About 80% of its customers are house owners who want to renovate their own houses and 20% are owners of hotels or condos who buy products for their property.
According to a source from Boonthavorn Ceremics Co. Ltd., the Boonthavorn showroom in Hua Hin covers 15 Rai of land with a showroom area of 15,000 square metres. That has required an investment of 300 to 400 million Baht. The company would like to buy a further 1.5 Rai to expand an area for tile and lighting products. This expansion will require a further investment of over 100 million Baht.
The Marketing Manager of Boonthavorn, Mr. Chanas Chuchart, said that following the showroom opening in Hua Hin a year ago, profits have increased substantially. About 50% of the customers are Thais and another 50% foreigners. In 2013 the company expects turnover to be about 700-800 million Baht, an average of about 60 -70 million Baht per month. This is divided into tiles – 50%, bathroom accessories – 20%, kitchenware – 15% and DIY products – 15%. The company has found that customers in Hua Hin prefer to purchase imported products such as imported European tiles and kitchenware. These products are at the higher end of the price range.
A source from CRC Power Retail Co. Ltd., an affiliate of Central Group, commented that their outlet at Thai Watsadu in Cha-Am required an investment of 700-800 million Baht and enjoyed a 100% business growth in the first 6-7 months. The turnover has now reached 31 million Baht per month. Metal and other building products provide the highest profit, followed by doors, tiles and building paints.
The Managing Board Member of Index Living Mall Co. Ltd. Ms. Krischanok Pattamasattayasonthi, recently commented that the company is planning to renovate its showroom in Hua Hin. With an investment of 50 million Baht, the showroom’s upper floors will be reserved for Index brand products and lower floor will stock the Winner brand and other household accessories. A 300 square metre space in front of the showroom will be transformed into a supermarket rented by Villa Market.
The Executive Board Chairman of Chic Republic Co. Ltd., Mr. Kitja Pattamasattayasonthi, said that the 6 month results after the company launched its business in Hua Hin at Pure Plaza were quite good. The most favoured products are furniture for bedrooms and living rooms. About 70% of its customers are Thais and 30% foreigners. In the future the company will invest 300-400 million Baht for a big stand-alone showroom.