Fashion
The Central Group, first opened as a small family-run shop by Mr. Chirathivat, in the city of Bangkok during the early 1950s. Expanded later on in 1956 by his son, Smarit Chirathivat, establishing the first Central Department Store in Bangkok. They were the first to import international cosmetic brands; the first to focus on impeccable customer services; and the first to implement innovative marketing communications.
One of the smartest tactics of the Central Group is that its work consists of a variety of diverse investments in various corporations, each of which has become the leader in the retail, property development, brand management, hospitality and food and beverage industries. What brings complimentary businesses to the Central Group and strengthen their position in the marketplace, both domestically and internationally.
Central Group Operational Highlights:
The last two years of 2016 and 2017 were significant for Central Group with the following changes:
2016:
1. Central Group and Nguyen Kim Group officially announced the acquisition of Big C Vietnam.
2. Took over Zalora Thailand and Vietnam.
2017:
1. Launched Park Hyatt Bangkok Hotel
2. Launched Rinascente Rome
3. Central Group and JD.com form a joint Venture.
4. Launch of Tops Plaza.
Central Group is counting on online growth to help drive sales. The company first announced its $500 million joint venture with JD in September, teaming up with China’s second-largest e-commerce operator. Central Group announced a new strategy in March 2018, a strategy called “New Central, New E-conomy” with which Central is aiming to become the first Market Leader in Digi-Lifestyle Platform. The company is aiming to become the first Market Leader in Digi-Lifestyle Platform.
Along with this strategy, the company also partnered with leading global companies to strengthen its business and has developed people and communities to grow sustainably with Central Group.
According to the Executive Chairman and CEO of Central Group, Tos Chirathivat, the three strategic Foundations used by Central Group to operate its business for many years are:
1. Be Retail Leader in Lifestyle and Services.
2. Expand Businesses beyond Thailand.
3. Strengthen Businesses by Merger & Acquisition.
This strategy has served Central Group for years and helped achieve a significant average growth of 11% over the last five years from 2013-2017, while the revenue mix of 2017 beaks down to 72% in Thailand, 15% in Europe and 13% in Vietnam.
For continued strong growth, Central Group President Yol Phokasub has emphasized a new 5-year strategy for 2018- 2022 to make a New Central, New E-conomy. The group will be the first Digi-Lifestyle Platform leader in Thailand delivering superior customer experiences to inspire lifetime loyalty. The Digi-Lifestyle Platform will be developed as a best in class common e-Commerce platform across businesses, as well as assisting the creation of new businesses through three Building Blocks:
Central Group has also formed a joint venture with Chinese e-commerce giant JD.Com to establish JD Central. The new Marketplace at JD.co.th is a new shopping channel for Central Group’s customers to facilitate Digi-Lifestyle platform more quickly and comprehensively. The website JD.th.com will be ready to provide service in May, as a platform to bring Thai products and SMEs to the World.
To develop the Digi-Lifestyle platform, Central Group gives priority to four main components to and achieve the target of the New Central:
This year, the company has a sales target of 397,308 MB, representing growth of 14% on 2017, and plans investment of 47,500 MB (27.8% growth from 2017), to expand investment in both Thailand and overseas. The company will develop its new business model to meet every customer demand, with plans to open new shopping malls and hotels.
Central Group has also achieved success with strategic partnerships with world class partners who have trusted Central Group, such as Dusit Thani with the mixed-use project on Rama IV Road and JD.com.
The plan of expansion of the Central Group for the next five is mainly concentrated around expansion of the business locally, and globally with a high focus on Europe.
In recent years, Central opened and acquired new operations in Indonesia, Vietnam and Malaysia. Among the most important activities currently ongoing in Southeast Asia within the business of Central Group is their recent joint venture with JD. Which is not only a major merging for the market but also a notable change as the two giants are focusing on the e-commerce world. JD is China’s leading e-commerce operator. Central Group is the number one retail brand in Thailand. Its subsidiaries own shopping malls, department stores, hotels, supermarkets and restaurants. The partnership will deliver a new online shopping platform JD.co.th.
Central Group will open multiple flagship stores on the platform. The partnership with JD is intended to help Central Group compete in Southeast Asia’s booming e-commerce market and also open business opportunities in China.
