Shops selling second-hand magazines might find business slowing down because of a new and modern player on the Bangkok block. The idea is simple, but sharp: customers can rent both old and new magazines wrapped in a single package deal, and they are delivered weekly, to the door.

Under the management of Kittipong Somrak, operation supervisor of You Delivery, the magazine shop with a difference is called Pan Kan (share it). All magazines are sent to customers without the need for them to ever visit the shop. What's more, customers can stipulate a preference for old magazines and pay a much lower price.

"Many magazine prices are up to almost Bt100, and some cost more than that," Kittipong explains. "This causes higher costs for many businesses such as coffee shops, clinics or barber shops that have to supply magazines for their customers."

Kittipong saw the situation as a business opportunity. He opened Pan Kan, offering magazines for rent on a weekly basis, so his customers no longer need to buy new periodicals every month, but still have a larger collection on hand.

"This fits both home and business clients," he says, and he counts coffee shops, barber shops, clinics, restaurants, car service centres, hospitals, music and language schools among his clients.

Pan Kan offers 11 popular and trendy magazines per week, or 44 per month. All are stamped with a Pan Kan sticker and wrapped in plastic covers.

The company has 10 workers to deliver the orders to customers throughout the Greater Bangkok area, from Nonthaburi to Samut Prakan. They return the following week to bring another 11 magazines and carry away the old ones.

Pan Kan's customers, who can buy membership for six months or one year, have a greater variety of magazines and face lower costs. The 11 new magazines cost Bt270 a week or Bt1,080 a month.

Some who do not see the need to rent new magazines are also able to choose recently outdated issues at a lower price. For instance, magazines that have been on book stands for one week, two weeks or nine weeks cost Bt220, Bt190 and Bt90 per week, respectively.

Pan Kan selects magazines for hire based on popularity. Its monthly magazines are Image, Cosmo, Cleo, Elle, Health & Cuisine, GM Maxim, Home and Garden, World Travel, Or So Tor, A Day and GM Plus, while the weekly ones are Preaw, Di-Chan, Cheewajit, Ploy Kan Petch, Kwan Ruen and Lips.

Others include TV Pool, Sakul Thai, Lisa, Weekly Matichon and Kan Hua Rua.

Pan Kan either purchases magazines directly from publishers or buys them from distribution agents, with opportunities for discount deals for mass purchases.

The magazines remain in the rental cycle for nine weeks, after which they are sent to customers in provincial areas. Some are resold to used-book shops, particularly those operating at Bangkok's weekend Chatuchak market, while others are donated to schools or libraries in the provinces.

Kittipong says his marketing strategy is simple, relying mainly on word of mouth and the stickers the company attaches to the front of all rented magazines. As well, sales people work to attract new clients and the company has opened its own website, panganbook.com, as another marketing channel.

"We have seen double-digit growth every year," Kittipong says. "At first we had 300 or 400 customers, and the number has jumped by 100 each year. We now have a total of 1,000 customers. About 40 per cent of them are home clients and the rest are businesses and shops."

Kittipong says that from time to time, publishers distribute new books for free as a way to promote their sales. Pan Kan plans to send these books to its customers free of charge.

Having been in business for six years, Pan Kan has seen a few rivals emerge over the past few years, but Kittipong is confident that the company can effectively deal with competition as well as managing higher business and transportation costs.

Pan Kan's next move, according to Kittipong, is to tap into the high-end market. He believes this market is still open and the company should reap a fruitful return from deep-pocketed customers.

Cheerawat Kongkaew

Bizweek