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Published on August 13, 2007

After manufacturing and supplying Canonball retail store furnishings and equipment for 17 years, Canonball Manufacturing is gearing up to roll out showrooms in the provinces and explore opportunities in foreign markets, starting with Vietnam.

"We will be more aggressive in expanding our retail-equipment business both upcountry and abroad," general manager Supreeya Tawla said last week.

The company plans to franchise its "OK Shop Fitting" showroom, featuring shelves, fittings, cashier counters, fixtures, racks, product displays, furniture and refrigerators.

Franchising will allow the company to penetrate the countryside more rapidly, she said.

Franchisees will be appointed in 44 major provinces, with the right to open showrooms exclusively carrying the company's retail products and to use its "OK Shop Fitting" logo.

"There are about 100 individual investors upcountry who are interested in becoming our franchisees. We're going to inspect locations in Surin, Nakhon Sawan and Rayong, where investors have approached us. They're close to concluding franchise deals with us," Supreeya said.

Franchisees will need an initial investment of Bt850,000 for two shop houses and Bt1.1 million for three shop houses, and also pay Bt50,000 to join the franchise system. The company will provide them with all the necessary signage and applications to run a showroom, and train their workers in stock management, product display and operations.

"Our franchisees will achieve a good return on investment, as their profit margin will be quite high, at 25 to 30 per cent. If they can reach sales of Bt500,000 to Bt600,000 a month, they will achieve payback within eight to 13 months," she said.

"We expect sales of Bt200 million from our franchise network next year, which will account for about 30 per cent of our overall sales," she said.

The company is also studying the retail market in Vietnam, starting with major centres including Hanoi and Ho Chi Minh City, before appointing a local distributor there. The country is quite open at the moment with dramatic growth in its economy. The people are also interested in products from Thailand. Grocery shops and other types of retail stores are expanding quite rapidly and present a promising market for retail equipment products, she said.

The firm operates a factory in Lat Lum Kaeo, Pathum Thani, with 230 employees as well as 14 showrooms all over Bangkok, including Huai Khwang-Ratchadaphisek, Bang Bon, Lat Prao, Charan Sanitwong, Srinakarin, Rangsit, Sathorn, Saphan Mai, Ram Intra and Bang Khae.

The Canonball brand enjoys more than half of the Bt1-billion market for retail equipment and store-fixture products, she said.

The company started its retail equipment business as a dealer for Rockworth office furniture and store fixtures.

After two years, the company decided to set up its own business with a small factory in a shop house on Pracharat Bumphen Soi 10. After three years, the company moved to a rented factory building in Bang Bua Thong and five years later built its own factory complex at Lat Lum Kaeo.

The company's total sales were more than Bt200 million last year and have been running at Bt20 million per month this year.

Kwanchai Rungfapaisarn

The Nation