King Power International Group has brought a series of high-quality retailing initiatives to the Thai gateway |
THAILAND. King Power International Group has unveiled plans for the most important expansion in its history. This will see the opening of Asia Pacific’s largest downtown duty free store and the creation of an expanded duty free operation at Bangkok’s new Suvarnabhumi International Airport due to open in 2005.
Local media reports, subsequently confirmed by The Moodie Report with King Power, said that the new airport operations together with the opening of a major new downtown shop in the Thai capital, will help double company turnover, currently THB12 billion (US$291 million), within the next ten years.
The airport duty free shops will cover 6,000sq m at two terminals within the New Bangkok International Airport, also known as Suvarnabhumi, a King Power source told The Moodie Report. This facility will replace the existing Don Muang International Airport where King Power has over 50 shops.
Senior Marketing & Sales Director Ouychai Rangchaikul said the expansion would require an investment of THB1 billion to THB1.5 billion (US$24-36 million). “This is the biggest move for our company in 15 years. Revenue is expected to double to THB24 billion (US$582 million) in the next 10 years,” Ouychai told The Nation.
The new downtown superstore will be sited within a new complex on Sri Ayutthaya Road still under construction and scheduled to open in 2006. This will house company headquarters, currently in Siam Discovery Tower.
As a result of the new airport opening, King Power will close its stores at Don Muang Airport in two years time. Another downtown store in the Mahathun Plaza building will also close. King Power will then only have one remaining downtown store at Central World Plaza.
Rangchaikul said the new downtown shop would be bigger than those in Hong Kong and Singapore [run by DFS Group – Ed], two of Thailand’s competitors. The company also plans to invest in a new warehouse in Lat Krabang, which is close to the new airport. Meanwhile, two warehouses in Pathum Thani province and the Don Muang area will be closed.
In a related development, King Power has also implemented a major destination merchandise initiative by creating its own brand name, VR, for made-in-Thailand products. VR are the initials of King Power Chairman and CEO Vichai Raksriaksorn.
As Thailand’s largest duty free operation, King Power is looking to garner THB400 million in sales from VR merchandise alone, Ouychai said.
King Power opened its first VR concession at Bangkok International Airport last week after testing the market for two years. It has created a range of premium made-in-Thailand products, mainly targeted at foreign travellers seeking to purchase quality Thai goods.
The VR specialty store offers six categories of products: food, leather, Thai silk, gifts and souvenirs, carvings and clothing.
“We offer high-quality and exclusive products. One of our product lines is Thai silk scarves from THB40,000 to THB200,000,” Ouychai said. He said the company plans to export to Europe in the future.
King Power International Group and King Power Duty Free Company are profiled in the latest edition of The Moodie Report PLUS in the most detailed analysis to date of one of the world’s most ambitious travel retailers. Click here to read it.
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