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Published on December 19, 2007

Early this year, the family joined hands with Arkitek-tura, a local importer of high-end kitchen furniture and bathroom-ware, to set up BP&M with registered capital of Bt19 million to import the Italian upmarket furniture brand B&B Italia.

The responsibility for four more high-end brands was transferred from Arkitektura to the new company: Arc Linea kitchen furniture from Italy, Axor-Hansgrohe bathroom-ware from Germany, Duravit sanitary-ware from Germany and Flos lighting from Italy, while Arkitek-

tura will continue selling Poppenpohl kitchen furniture from Germany with retail prices from Bt500,000 to Bt4 million.

The furniture business is the 11th of the Yip In Tsoi family. In business for more than 80 years, the family has interests in insurance, information technology, event organising, agriculture, trading and construction materials.

"We do realise the current economic and political uncertainty, especially what might happen after the election, but we have planned for entering this business for a year, so it's about time to start," said Somchai Akkarawittayapoom, managing director of BP&M and Arkitektura.

"Above all, we look at long-term business potential and we believe that high-end real estate is still going on well, although the sector next year might not show big growth."

Investors from Taiwan, South Korea, Hong Kong, Japan and Europe still want to invest in high-end real-estate projects in Thailand, he added.

So far, BP&M has two high-end condominiums in hand with corporate customers, one in Bangkok's central business district area and the other in Phuket. The two projects will contribute Bt80 million in revenue.

The company is also negotiating with foreign investors for two more low-rise projects in Phuket and one high-rise project in the central business district of Bangkok. Somchai, however, declined to reveal their names.

In terms of retail selling, BP&M will open an 880-square-metre flagship store in the Thonglor area early next year. Its products will target wealthy consumers with prices ranging from five to seven digits.

The company estimates the retail channel will contribute 80 per cent of its sales, with the rest from real-estate projects. Somchai said it took time to conclude deals for those projects, though he believes that the individual targeted consumers have never been affected by economic and political uncertainty due to their wealth.

The company is still working on setting a marketing budget. However, Somchai said the new company should achieve Bt60 million in sales by next year-end, of which Bt20 million should be contributed by property projects.

Nitida Asawanipont

 The Nation