Officemate to focus on agencies and SMEs

Managing director Worawoot Ounjai said yesterday that the private sector was by far its main client base at more than 90 per cent of sales, while government agencies account for only 5 per cent and SMEs and end-users the remainder.

However, the economic crisis has affected many private firms, with some companies laying off workers. This has dented the market for office-stationery products.

The company has, therefore, had to adjust its business plan by focusing more on selling to government agencies, for which it expects the market to rise by nearly 20 per cent this year, he said.

He added that falling purchasing power by companies meant Officemate would achieve its lowest growth since it started business 14 years ago. The company targets growth this year at 12 per cent, for sales of Bt1.1 billion.

"We recorded sales revenue of Bt970 million in 2008, up by 14 per cent from 2007. But the figure was lower than our expectation of 20 per cent because of the political turmoil and airport closures," he said.

Worawoot said this year's growth of 12 per cent would come from state agencies and SMEs.

He said the company would reduce the minimum order size from Bt4,000 to Bt800 from April in order to attract more end users and SMEs.

Moreover, Officemate will open a new website sales channel next month, which it calls electronic community commerce. The website will offer cosmetics, stationery, gifts, home and living items, and toys, which the company believes will boost sales to end users.

"We are investing about Bt10 million to develop the website. We are also spending Bt50 million on marketing activities and promotion, up by 25 per cent from last year, to encourage customers to purchase more," he said.

Worawoot said that normally a large budget for marketing activities could boost growth by more than 25 per cent, but sales growth of 12 per cent this year is satisfactory given the economic downturn.

He also said the plan to list Officemate shares on the Market for Alternative Investment would be delayed from this year to the second quarter of 2010.