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King Power banks on stable politics



King Power banks on stable politics

Vichai Raksriaksorn is pictured in front of King Power’s head office and its Garuda sculptures, given to the company as a royal warrant. He is bullish on next year’s prospects for the company.

King Power International Group targets revenue of Bt22 billion next year, providing the political situation is stabilised and does not affect the tourism industry, which generates half of the company's income.

Chief executive officer Vichai Raksriaksorn expressed confidence at a press conference yesterday that the revenue target was achievable as long as there were no massive political protests.

"Next year, we will review the operating plan on a quarterly basis to cope with fast-changing developments," he said.

Vichai expects King Power's revenue this year will be Bt18.3 billion, which is Bt700 million lower than the revised target of Bt19 billion.

Originally, the company expected revenue of Bt23 billion this year, but it was lowered due to the global economic slowdown and domestic chaos during April's Songkran festival, which directly affected the firm's three main markets - China, Japan and South Korea - which are very sensitive to the local political situation.

He believes that if Thai politics is stable next year, the tourism business will continue to get back to normal. International arrivals in October and last month showed signs of improvement.

King Power has seen an increasing number of Chinese tourists at its Pratunam duty-free store.

Vichai urged the government to facilitate Chinese travellers by giving them five-year re-entry visas.

To smooth operations, King Power next year will focus on three things. First, it will reduce expenses, with all employees urged to cut costs.

Second, it will adjust product ranges, brands and layout in order to match its target groups.

The company's customers are currently 50 per cent Thais and 40 per cent Chinese, with the bulk of the remainder Japanese and Koreans.

Indian customers are another interesting group as they are travelling to Thailand in increasing numbers, mostly buying liquor, cigarettes and electrical appliances from duty-free outlets, he said.

Third, the company will increase its membership. It has about 500,000 members now.

Sales promotions will be continued, with premiums and discounts to raise shoppers' appetites, said Vichai, adding that King Power had agreed with AirAsia and Airports of Thailand the launch of a promotion aimed at attracting more Chinese visitors.

King Power will offer discounts on accommodation, shopping, cuisine and theatres, AOT will offer discounted landing fees at Suvarnabhumi Airport and AirAsia will offer discounted air fares.

KING POWER EYES BT22-BN REVENUE NEXT YEAR IF POLITICS

  WATCHARAPONG THONGRUNG

THE NATION

King Power International Group targets revenue of Bt22 billion next year, providing the political situation is stabilised and does not affect the tourism industry, which generates half of the company's income.

Chief executive officer Vichai Raksriaksorn expressed confidence at a press conference yesterday that the revenue target was achievable as long as there were no massive political protests.

"Next year, we will review the operating plan on a quarterly basis to cope with fast-changing developments," he said.

Vichai expects King Power's revenue this year will be Bt18.3 billion, which is Bt700 million lower than the revised target of Bt19 billion.

Originally, the company expected revenue of Bt23 billion this year, but it was lowered due to the global economic slowdown and domestic chaos during April's Songkran festival, which directly affected the firm's three main markets - China, Japan and South Korea - which are very sensitive to the local political situation.

He believes that if Thai politics is stable next year, the tourism business will continue to get back to normal. International arrivals in October and last month showed signs of improvement.

King Power has seen an increasing number of Chinese tourists at its Pratunam duty-free store.

Vichai urged the government to facilitate Chinese travellers by giving them five-year re-entry visas.

To smooth operations, King Power next year will focus on three things. First, it will reduce expenses, with all employees urged to cut costs.

Second, it will adjust product ranges, brands and layout in order to match its target groups.

The company's customers are currently 50 per cent Thais and 40 per cent Chinese, with the bulk of the remainder Japanese and Koreans.

Indian customers are another interesting group as they are travelling to Thailand in increasing numbers, mostly buying liquor, cigarettes and electrical appliances from duty-free outlets, he said.

Third, the company will increase its membership. It has about 500,000 members now.

Sales promotions will be continued, with premiums and discounts to raise shoppers' appetites, said Vichai, adding that King Power had agreed with AirAsia and Airports of Thailand the launch of a promotion aimed at attracting more Chinese visitors.

King Power will offer discounts on accommodation, shopping, cuisine and theatres, AOT will offer discounted landing fees at Suvarnabhumi Airport and AirAsia will offer discounted air fares.



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