Parker Hannifin targets 30% growth in sales
Parker Hannifin Thailand (PHT) aims to increase sales of its motion-control components and systems by 30 per cent on the strength of franchising its flagship Parker Store.
After launching its retail operation eight months ago, PHT has already opened eight stores near major industrial complexes, supplying mainly hydraulic equipment, filters, hoses and fittings, fluid control equipment, seals and pneumatic equipment to the cement, automobile and other heavy industries. Its parent company has 210 branches worldwide. PHT now boasts four hubs in Saraburi and two in Samut Prakan. It also has four satellite stores in Phuket, Pathum Thani, Nakhon Ratchasima and Rayong. Prospective hub franchisees should have warehouses and extensive regional distribution networks and systems to support surrounding satellite stores, Jarin Wachiratakanwong, retail sales supervisor, said yesterday. The hub-satellite model has already been successfully implemented by Parker Hannifin in other Asian markets such as China, Singapore and Malaysia. The model means that a satellite store only requires a set-up cost of Bt400,000 to Bt500,000 for a four-by-eight-metre shop. On the other hand, Bt5 million is required for a hub, including stock and other costs. Retail stores are able to shorten lead times so that customers no longer have to wait at least 24 hours for components. Each location targets a specific industry. In Phuket, PHT mainly caters to the yacht and shipping businesses, while its main clients in the Eastern Seaboard are auto-makers such as Ford and General Motors. Having operated in Thailand since 1997, PHT last year reported sales of Bt450 million and expects about Bt600 million this year. Last fiscal year, sales of its parent, Parker Hannifin Worldwide, exceeded US$9 billion (Bt315 billion). Ki Nan Tsui The Nation
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