Singer opens store for used goods

General news - Thursday December 13, 2007

APPLIANCES / RETAIL EXPANSION

Singer opens store for used goods

PITSINEE JITPLEECHEEP

Singer (Thailand) Plc, the distributor of Singer sewing machines in Thailand, plans to expand its role from distributor to retailer to increase sales this year.

Siam Uraiwong, the company's business development director, said that as part of its strategy, the company was negotiating with at least 10 electrical appliance manufacturers to sell their goods through Singer's Smart Select shop network in the future.

The electrical appliance brands sold at Smart Select will be of high quality, but prices would be about 20-30% cheaper than at other modern trade channels, Mr Siam said.

The company opened its first Smart Select shop at Ying Charoen market in Saphan Mai, a northern Bangkok suburb, at the end of last month.

About 60% of the products in Smart Select shops are Singer's new and second-hand electrical appliances, while the rest are from other electrical brands including LG and TCL. Prices of second-hand products are about 20-80% cheaper than normal brand-new items.

''The concept of Smart Select at Ying Charoen market is totally different from the past,'' Mr Siam said. ''We are the only second-hand shop that offers second-hand products with a guarantee.''

The company will also allow electrical appliance manufacturers to sell goods at Smart Select shops on a consignment basis.

Products available at Smart Select include refrigerators, beverage coolers, television sets, washing machines, sewing machines, gas stoves, stereo sets and motorcycles.

Most of the products come from Singer's trade-in programme designed to encourage current users of household electrical appliances to upgrade their lifestyles.

All of the items come with free spare parts and a labour guarantee for up to 90 days. They can be exchanged within seven days.

Mr Siam said that the company plans to open three new Smart Select shops next year, and the total number will reach 10 shops within 2009.

Each requires an investment of about 2-3 million baht, and gains about 20-30 million baht in sales per outlet.

Sales of Smart Select shops in 2009 are expected to reach 150 million baht. Shares of Singer closed yesterday on the Stock Exchange of Thailand at 1.63 baht, down two satang, in trade worth 1.11 million baht.

Bangkok Post