Published on May 13, 2005

Siam Inter to franchise Book Friend chain

Plans more 7-Eleven comic stands

Siam Inter Multi-media is set to start a new chapter in its corporate tale: franchising its Book Friend chain.

Suthisak Lohsawat, chief executive officer of Siam Inter, which publishes comic books and operates sports radio channels, said that the group must first develop an IT-based point of sale system for its bookstore before embarking on franchising.

After that, the company plans to start franchising and increase the number of stores to 100 by 2007.

“We expect to franchise our first Book Friend store by the end of this year,” Suthisak said, adding that franchise stores would become major contributors to the company’s sales in the next three years.

The Bt5-million IT system, would be implemented in 17 of the company’s 20 Book Friend stores by the end of June. This would allow the company to track sales and give an inventory of every book on its shelves.

The company expects to have 40 Book Friend stores up and running by the end of the year.

“The expansion of the bookstore chain will allow the company to create economies of scale, be more efficient in handling logistics and have greater bargaining power with book suppliers.

“And, under franchising, we can … increase the contribution ratio of the bookstore business [to the company’s overall revenues] from less than 10 per cent currently to more than 30 per cent,” Suthisak said.

Currently, he said, more than 80 per cent of Siam Inter’s revenue comes from publishing – comic books and variety magazines, including the Thai version of Kira teen magazine, which is licensed from Japan.

More than 200 titles of pocket books will also be launched this year.

The company also plans to launch a Thai version of the UK-based Mother & Baby magazine in August.

The company also operates seven radio stations that broadcast sport radio programmes. These include FM 106.75 and FM 94 in Bangkok, FM 107.5 in Lamphun, FM 99 in Phetchabun, AM 1449 in Phichit, FM 102.25 in Phuket, and FM 105.75 in Udon Thani.

Siam Inter yesterday reported revenues of Bt179 million in the first quarter, an increase of Bt67 million, or 60 per cent, from the same quarter last year.

The gross profit logged in the first quarter was Bt72 million, 35 per cent up on the same period last year.

There are 400 book-chain outlets in Thailand, in addition to 20,000 bookstands at traditional grocery and convenience stores.

The company recently placed comic book stands in 59 7-Eleven stores, and plans to increase the number of stands to 100 in the convenience-store chain by the end of June.

Kwanchai Rungfapaisarn

The Nation

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