CPAC to tap retail market

Hit by a slow-down in the wholesale sector, CPAC Dsign has changed tack.

It plans to increase its retail sales and tap into the upcountry market to compensate for the loss in revenues from the government sector, which has declined by 20 per cent.

The national market leader in floor blocks and tiles, CPAC Dsign wants to expand its retail base from 15 per cent last year to 20 per cent by the end of this year mainly through its 40 Cement Thai Home Mart national chain.

Pittaya Jantawichayasuit, sales and marketing division manager, is confident that with at least 12 new branches to open this year, turnover could reach Bt1.2 billion, with average sales of Bt100 million a month.

Yet CPAC Design, a Siam Cement Group company, has many hurdles to overcome.

The company has to, first and foremost, change its marketing strategy.

"In wholesale, particularly selling to real-estate developers large and small, it is all about pricing," said Pittaya.

Pittaya said the margin would be cut to as low as 5 per cent in competitive projects. However, in retail, the emphasis was more on design, he said.

But looking good is not a good-enough reason to clinch sales. CPAC Dsign will have to help prospective clients agree with the image, as well.

"When we go around real-estate projects, we set up our products in packages - such and such of our wall tiles go with so and so flooring. And when customers see it, they buy the whole package," said Pittaya. A good road show would net CPAC an average of Bt200,000 in sales.

The trend this year is to move towards energy-saving and a natural look. Already its wood-simulated wall tiles are in demand. Pittaya also revealed that CPAC Dsign's research and development department is developing new wall tiles that conserve energy and cool the house.

In the upcountry market, CPAC Dsign already has the capacity to increase its production in all regions. "For instance, in the Northeast we have our factory in Khon Kaen, on the Eastern seaboard we have one in Sri Racha," said Pittaya.

A new factory may be set up in Prachuap Khiri Khan.

CPAC Dsign will spend Bt20 million this year in marketing, hoping to grow by 10 per cent surpassing last year's turnover of Bt870 million.

Recently, it built a French garden in the exhibition area of The Emporium as a stage for the department store's annual diamond show. This is a continuation of its "Inspire by CPAC Dsign" re-branding last year.

Ki Nan Tsui

The Nation
Thu, February 1, 2007