Canon Marketing (Thailand) will franchise its photo book-making service next quarter to tap rising demand from consumers in the near future, while its traditional enterprise market has been throttled by the global crisis.
"The photo book-making service overseas such as in the US is very popular, as the business so far this year has grown by 35 per cent from last year. We expect our revenue from the new business to grow not less than that in the US," Soontorn Pantaramongkon, senior director and general manager for business imakging solutions, said yesterday.
Canon wants to diversify risk from the corporate market, which took the brunt of the economic slump, while the retail market was relatively unscathed.
The company along with its strategic partner in photo book-making - Sib Khon - were preparing a franchise business model under the brand "imageGang by Canon", as well as a marketing plan aimed at whipping up consumer demand.
The companies plan to unveil the new business model next quarter.
Canon Marketing will recognise revenue from the business by selling printing solutions and after-sales services to the franchisees.
Sib Khon has designed photo book-making software to use with Canon's Press C6000 digital image printer. Canon and Sib Khon started the business at the beginning of this year by setting up the first branch in Siam Square.
The photo book-making service is under Canon's print on-demand business unit (POD). Sales of Canon printers have dropped from last year, while sales of products from the POD and the professional and graphic arts business unit (PGA) have increased by 50 per cent.
About 80 per cent of Canon's revenue comes from multifunction photocopiers, and colour and black-and-white digital printers.
The overall market for those products in the first half of the year slid by 15 per cent from the same half in 2008. Although Canon has lost share in that business - from 23 per cent last year to 20 per cent - it is still the market leader.
POD and PGA focus on printing for young entrepreneurs and SMEs, whose printing volumes are smaller than that of a large corporation.
Examples of printing materials are business cards, manuals, brochures, cards, posters, leaflets and coupons.
Canon targets its total revenue rising 18 per cent this year to Bt1.28 billion, with Bt60 million generated by POD and PGA. That forecast excludes revenue from photo book-making service, which is quite difficult to evaluate this year.
Thursday, September 24, 2009
Wednesday, September 16, 2009
CP ALL TO INCREASE NUMBER OF 7-ELEVENS
CP All, the operator of 7-Eleven convenience stores, is planning to increase the number of franchised stores to 60 per cent within five years.
Managing director Piyawat Titasattavorakul said yesterday that franchised stores showed higher margins than the company's own stores, because they are run by individual entrepreneurs for whom efficiency and returns are the top priority. The plan is also in line with the company's policy to create more entrepreneurs.
At present, the number of 7-Eleven stores exceeds 5,000, with 2,344 or 45 per cent being run by franchisees. The company wants the proportion of franchised stores to increase by 3 per cent per annum.
"Ninety per cent of stores in countries like Japan and the United State is run by franchisees. We would like to do the same. CP All plans to only operate 3,000 branches and franchise the rest," he said.
Anittha Thanamit, assistant managing director, said that to support this policy CP All would have to offer franchisees more attractive returns.
At present, CP All offers two franchising models. In the first model, franchisees have to invest Bt1.5 million per branch, of which Bt500,000 will be spent on franchising fees and store decoration, with the remaining Bt1 million held back as a deposit that will be returned to franchisees if they want to bow out.
The second model requires an investment of Bt2.65 million per branch, of which Bt900,000 is put aside as a deposit guarantee and the remaining Bt1.75 million spent on franchising fees, store decoration and management.
Under the second model, CP All promises that investors can breakeven within three years.
Aside from the expansion of franchised stores, CP All is also planning to get 7-Eleven stores to focus more on food and beverages.
Piyawat said consumer goods generated a margin of around 10 per cent, while foods and drinks roughly 20 per cent. Besides, some of the food and drink items sold in 7-Eleven are produced by the Charoen Pokphand Group, CP All's parents company.
He added that at present 80 per cent of the products sold in 7-Eleven were edibles, and the firm plans to increase this proportion to 85:15 in the next three years.
Managing director Piyawat Titasattavorakul said yesterday that franchised stores showed higher margins than the company's own stores, because they are run by individual entrepreneurs for whom efficiency and returns are the top priority. The plan is also in line with the company's policy to create more entrepreneurs.
At present, the number of 7-Eleven stores exceeds 5,000, with 2,344 or 45 per cent being run by franchisees. The company wants the proportion of franchised stores to increase by 3 per cent per annum.
"Ninety per cent of stores in countries like Japan and the United State is run by franchisees. We would like to do the same. CP All plans to only operate 3,000 branches and franchise the rest," he said.
Anittha Thanamit, assistant managing director, said that to support this policy CP All would have to offer franchisees more attractive returns.
At present, CP All offers two franchising models. In the first model, franchisees have to invest Bt1.5 million per branch, of which Bt500,000 will be spent on franchising fees and store decoration, with the remaining Bt1 million held back as a deposit that will be returned to franchisees if they want to bow out.
The second model requires an investment of Bt2.65 million per branch, of which Bt900,000 is put aside as a deposit guarantee and the remaining Bt1.75 million spent on franchising fees, store decoration and management.
Under the second model, CP All promises that investors can breakeven within three years.
Aside from the expansion of franchised stores, CP All is also planning to get 7-Eleven stores to focus more on food and beverages.
Piyawat said consumer goods generated a margin of around 10 per cent, while foods and drinks roughly 20 per cent. Besides, some of the food and drink items sold in 7-Eleven are produced by the Charoen Pokphand Group, CP All's parents company.
He added that at present 80 per cent of the products sold in 7-Eleven were edibles, and the firm plans to increase this proportion to 85:15 in the next three years.
Tuesday, September 15, 2009
GFA to double outlet total in five years
Global Franchise Architects (GFA), the Swiss owner of Coffee World and other food and beverage chains, is set to double its business size to 200 outlets by 2013.
About half the additional outlets will belong to Coffee World, with the rest under its six diversified brands: The Cream & Fudge Factory, Pizza Corner,New York 5th Avenue Deli, The Donut Baker, Juisomania and Conizza. Each outlet will require an investment of 2-6 million baht, depending on store size.Each will create six to 10 new jobs.
"We currently have the capability to open at least 10 outlets per month, which would double our size in one year. We are confident of moving faster than in the past because our people, product variety, factories and IT solutions are all ready. However, our biggest challenge is to find good locations," said Fred Mouawad, the company's chairman and CEO.
Coffee World is the only chain to have its own coffee roasting factory in Thailand.
Mr Mouawad wants to speed its expansion from next year because he is optimistic the economy will improve slightly and inquiries from potential franchisees have increased. The downturn has not hit the food business too hard because people still have to eat, he said.
To attract investors, the company has cut the franchisee fee for food and beverage brands by 20% until the year-end.
GFA operates 105 outlets nationwide.About 75% are company-owned and the rest franchised. In the near future, the ratio will slide to 60:40.
Sales are not expected to grow this year, for the first time in 12 years in Thailand, because of the tourism slump.
Mr Mouawad aims to counter this with more local promotion and lowerpriced products.
GFA plans to introduce its new coffee outlet format serving a full range of bakery items at CentralWorld in the coming months. The company will spend 6 million baht for this new outlet.
GFA operates 210 stores under nine food and beverage brands in 10 countries.Thailand is its biggest market with 105 outlets, followed by India with 75. The rest are in Vietnam, Indonesia, Dubai,Bangladesh and Oman.
About half the additional outlets will belong to Coffee World, with the rest under its six diversified brands: The Cream & Fudge Factory, Pizza Corner,New York 5th Avenue Deli, The Donut Baker, Juisomania and Conizza. Each outlet will require an investment of 2-6 million baht, depending on store size.Each will create six to 10 new jobs.
"We currently have the capability to open at least 10 outlets per month, which would double our size in one year. We are confident of moving faster than in the past because our people, product variety, factories and IT solutions are all ready. However, our biggest challenge is to find good locations," said Fred Mouawad, the company's chairman and CEO.
Coffee World is the only chain to have its own coffee roasting factory in Thailand.
Mr Mouawad wants to speed its expansion from next year because he is optimistic the economy will improve slightly and inquiries from potential franchisees have increased. The downturn has not hit the food business too hard because people still have to eat, he said.
To attract investors, the company has cut the franchisee fee for food and beverage brands by 20% until the year-end.
GFA operates 105 outlets nationwide.About 75% are company-owned and the rest franchised. In the near future, the ratio will slide to 60:40.
Sales are not expected to grow this year, for the first time in 12 years in Thailand, because of the tourism slump.
Mr Mouawad aims to counter this with more local promotion and lowerpriced products.
GFA plans to introduce its new coffee outlet format serving a full range of bakery items at CentralWorld in the coming months. The company will spend 6 million baht for this new outlet.
GFA operates 210 stores under nine food and beverage brands in 10 countries.Thailand is its biggest market with 105 outlets, followed by India with 75. The rest are in Vietnam, Indonesia, Dubai,Bangladesh and Oman.
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