Better Vision looks ahead despite lower sales in 2006
The Better Vision Group’s Pakee Pracharktam says he must accept that the company’s sales-growth rate has dropped to 12-13 per cent this year, from last year’s 17-18 per cent.
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The Better Vision Group, an eyeglass importer and distributor, expects to see a drop in its sales-growth rate this year, to 12-13 per cent from last year's 17-18 per cent due to high oil prices and flood disasters in many provinces.
The group's Pakee Pracharktam yesterday said this was the company's lowest growth since 2000. Its sales had surged from 2000-04 but started to slow down last year, due to rising oil prices. This year, the oil factor continued to affect all retail businesses, leading to price increases and deteriorating purchasing power of consumers. At the same time, disasters in many provinces have affected the performance of the branches located there. A strong baht next year is Pakee's main worry now. He said it does help the company cut import costs but if the currency continues to remain strong next year, this might affect the domestic economy because of weak exports, a major part of the Thai economy. Yet Pakee also foresees positive factors next year. He said spending should increase because Thailand has a stable government, albeit interim. This boosts consumers' confidence to a certain level. Also, people tend to spend more because they had to suspend spending throughout the year. Nevertheless, to boost its performance next year, the company will double its marketing budget to Bt40 million to strengthen awareness of its two brands: Hor Van, targeting the mass market, and Better Vision, the high-end, said Pakee. He said the company wants consumers to know that Better Vision and Hor Van are run by the same company providing the same service standard but offering different eyeglass prices. Printed and outdoor ads will be the main media for advertising. Of the total marketing budget, Bt35 million will be allocated for Hor Van and the rest for Better Vision, he said. Pakee estimates that the eyeglass market by this yearend will increase 10 per cent from Bt5 billion last year, with the premium and mass market sharing equal proportions in terms of value. The group currently has a 16-per-cent market share, an increase from 10 per cent last year. It has 240,000 customers - 80 per cent for Hor Van and the rest for Better Vision. This year, it opened nine new branches of Better Vision and Hor Van, resulting in a total of 96 nation-wide, of which six are for Better Vision. It plans to open 10 branches next year, including one in All Seasons Place on Wireless Road.
Nitida Asawanipont The Nation
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