Photo Hut restructures management

As the economic crisis unfolds, the company has decided it is a good time to focus on management, particularly human-resources development. As part of this effort, Photo Hut has recruited master's degree holders in many areas, especially business administration, marketing and finance, to upgrade its operations.

Existing administrative-level staff will be encouraged to continue studying toward master's degrees in business administration. Technicians and experts will also be drafted in to provide advanced-technology training. These experts are expected to be a key driver of future expansion.

The training programmes, which will cost the company an average of Bt2 million to Bt3 million per year, are aimed at strengthening employees' technical knowledge and hands-on expertise, said chief executive Somchai Krongsomboon.

"We want to turn ourselves from a family business into a professional operation. We learned from the previous financial crisis in 1997 that our business cannot grow in the right direction without experts," Somchai said.

The company has set up a four-step training programme that must be completed by all new recruits in an effort to make its services more professional.

"When I retire from the company, the business should be able to continue running 'automatically' according to a standardised working system," Somchai said.

The company has assets worth about Bt1 billion, of which camera stock and accessories account for about Bt300 million to Bt400 million.

The photography business deals mostly with digital products, and the technology is constantly evolving, so staff with expertise in the field are required in order to keep up with trends.

Somchai's own experience is mainly in sales, including products such as concentrated fragrances, medical equipment and farm machinery, particularly the well-known Kubota brand of Siam Cement Group.

He started his first business in 1987, opening a drug store with an investment of Bt1.4 million.

Plagued with problems, Somchai closed the store after a year. He saw that modern trade methods were coming to Thailand and sensed a business opportunity.

Somchai, had loved photography since he was a student at Suankularb College, a well-known secondary school in Bangkok. He invested Bt2 million to open a small photo-lab and printing service in a department store - a pioneering choice of location at the time.

The business grew very fast and he soon opened a second shop.

Somchai rapidly gained experience in management, finance and marketing. As a result, his plans soon expanded to include a standalone shop and his own Photo Hut brand name.

The company's total sales are expected to hit Bt2 billion this year and the firm plans to reach average growth of 15 per cent a year. It employs 400 staff at 160 outlets and will open 90 new shops this year in Tesco, Central and Big C Supercentre branches.

The spread of digital technology has created business opportunities for Photo Hut, including photography courses, TV programmes and books.

In its latest venture, the company is in talks with tour agencies, including Diamond Shine Holiday, to create trips abroad tailored to photo buffs. Four trips are planned for this year, with destinations including Bali and Hong Kong.

Photo Hut Group (Thailand), the country's biggest integrated photo-service provider, has focused more on management restructuring to achieve professional operation within three years in an attempt to encourage the plan to become a listed company in the near future.

The economic crisis is a good time for the company to turn eyes in improving its management, particularly, on human resources development. As a result, numbers of master degree in many areas especial business administration, marketing and finance have been recruited to achieve modern business operation.

In addition, existing administrative level staff will also be encouraged to continue studying in master degree for business administration. Technician and experts will also be involving in advance technology training. They will be a key business driven engine for expansion in the future.

Somchai Krongsomboon, chief executive officer of the company, said those training programme cost the company an average of Bt2-3 million per year. In addition, the training will strengthen the company's staff on both knowledge and experiences.

"We want to turn ourselves from family business to professional operation as we learned from the previous financial crisis in 1997. Our business could not grow on the right direction as we lack of experts," Somchai pointed.

The company has set up a four-step training programme which all new recruitment has to pass the test. These will allow the company has professional services.

"Whenever I retire from the company, the business should automatically run by the set up standard working system," Somchai stressed.

So far, the company manages for a total asset of Bt1 billion, of that camera stock and accessories cost about Bt300-Bt400 million.

Somchai noted that his business concerns most digital products which technology changes very fast so that it requires expertise staff to catch up with the trend.

Somchai's working experiences mainly focused on saleman of concentrated fragrant, medical equipment until farm machine particularly a well-known "Kubota" brand of Siam Cement Group.

He started his owned business by opening drug store in late 1987 with an investment of Bt1.4 million. However, Somchai loves photo-taking practice since he was a student in Suankularb College, a well-known secondary school in Bangkok.

However, he decided to close his drug store after opening for more than one year due to many problems. In addition, he foresaw that modern trade was entering into Thailand would crate business opportunity for him.

As a result, he invested Bt2 million to open a small photo lab printing and service in department store. He was also a pioneer to open such business in department store.

The business grew very fast which he expanded the second shop in a short time.

He gained a lot of experiences from those two shops including management, financial system and marketing. As a result, the plans to expand business to set up standalone shop and create "Photo Hut" as his owned brand name.

In addition, the company's total sale sets to achieve Bt2 billion this year and plans to reach average growth by 15 per cent every year. It employs 400 staff to smooth operation of its 160 outlets now and will open 90 new shops this year both in Tesco, Central retail business and Big C supercentre.

As digital technology has undertaken by people, it paves the way the company to create more business such as photo-taking technique course, TV programme and book as well as travel trip.

The latest business, the company is in talks with tour agencies such as Diamond Shine Holiday to draw up travelling trip abroad focusing on photo-taking lover. It will have four trips this year such as Bali and Hong Kong.