Papon Ratanachaikanont, deputy group chief commercial officer at True, explains the "retailisation" movement being championed at Thailand's only fully integrated telecommunitations and media company to The Nation's Pichaya Changsorn.
About three years ago, when Papon Ratanachaikanont proposed to True's board of directors that the company set up coffee outlets, he was stunned by a question from one board member who asked bluntly: "Who are you?"
Having just left the local unit of auto-maker Mazda to joining the telecom conglomerate, Papon had yet to prove himself.
However, after some intense debate, the board approved Papon's plan, which he now admits was intended to be no more than a "marketing gimmick."
"That's how savvy our board was. They approved a budget of more than Bt100 million and ordered me to return the money within three years," he said.
The entrepreneurial task was a big challenge. Papon himself had not expected True to pursue the business. "We first approached Starbucks for a partnership, but they said they did not know us," he said.
Today, True Coffee has paid back the original investment and is a profitable enterprise, Papon said.
As a vote of confidence and part of the group's "convergence" business policy, the parent company in March assigned Papon to take care of all of the group's retailing units and customer service points, totalling nearly 400 outlets, and unit them. These include True Shops, handling fixed-line telephone and Internet business, the outlets of cellular-phone business True Move, customer-service points for cable-TV unit True Vision, True Coffee and 167 new iPhone kiosks established over the past 45 days under Papon's direction in big discount stores and retail complexes, such as Tesco Lotus.
The physical merger of True'e retail outlets is now complete, but there remains a lot of back-office work to be done, and one of the most challenging areas is people management. Papon, who was earlier responsible for True Coffee, with fewer than 40 outlets and a combined staff of 160, is now managing nearly 400 group outlets employing 2,500 people.
But why did he go for coffee in the first place?
Papon said he believed in the "retailisation" trend now seen around the world. Technology is a "hard side" of the business. People are unable actually to feel and touch it, so it needs an "aesthetic" feature like coffee to merge into it.
"I began with a stark contrast - coffee and technology - but people liked it. A 'soft touch' is important, because it gives an aesthetic dimension to people's communications with True," he said.
"In the previous environment, customers felt like they owed us, because they came in with the sole purpose of paying telecom bills. There was no way to improve customer touch points."
In terms of the company's bottom line, True shops are now no longer a pure cost, accepted in the interests of earining income. Coffee and bakery sales have softened this status.
A new True shop recently opened in Central Chon Buri, the first outlet to merge coffee and other services from day one. Up to 100 True shops will soon incorporate a full coffee-store format, while the rest might have self-service coffee sales or other 'soft-side' features, Papon said.
"It's a reverse psychology. Consumers would not be able to find us if we 'converged' without all of the physical presences," Papon said, referring to True's "convergence lifestyle" business philolophy of cross-selling and cross-marketing its Internet-access, cable-TV and wi wired and wireless telephone-network service.
A longer-term goal is to transform all of True's physical outlets into "third-generation destinations" and lifestyle centres for consumers, he said.
Thursday, August 27, 2009
Guidelines not so sweet for soda makers
The American Heart Association's recommendation on Monday to cut back dramatically on sugar may be a blow or opportunity for soft drink makers, who have been accused of helping fuel the US obesity epidemic.
Hurt by an ailing economy and expanding waistlines, consumers have cut back on soft drinks. After years of growth, US carbonated soft drink sales by volume fell for the first time in 2005, and the decline has accelerated each year since.
Volumes fell 3% last year, the biggest drop since at least the early 1980s,Beverage Digest , a US-based industry publication, reported in March.
The AHA's new guidelines say women should eat no more than 100 calories of added sugar per day, or six teaspoons (25 grams), while most men should keep it to just 150 calories or nine teaspoons (37.5 grams).
That's far below the 22 teaspoons (90 grams) or 355 calories of added sugar consumed by the average American each day, according to a 2004 government survey.
The AHA also singled out soft drinks as the top source of "discretionary"sugar calories.
Edward Jones analyst Jack Russo said the new guidelines could give some consumers sticker shock in the short term but also might encourage PepsiCo Inc and Coca-Cola Co to focus even more on developing healthier options.
"In some crazy way, even if this gains some groundswell, these two companies are pretty quick to have a Plan B ready and they could actually develop some new products, even on the soft drink side, that could be touted as healthier and could improve their businesses," he said.
Russo cited McDonald's Corp as an example, saying the fast-food chain has had success with healthier menu items, such as salads and apple dippers,after its menu was criticised by health activists."As we continue to morph into more health and wellness issues,this is going to be a recurring focus.The quicker these companies are to react to this the better."
He said both companies are developing lower-calorie drinks, such as those made with a new natural, nocalorie sweetener derived from the stevia plant.
Coke, PepsiCo and other soft drink makers have seized upon the growing move toward low-calorie products, expanding in recent years their offerings of diet sodas, bottled waters and other healthier drinks.
"The industry has been talking about the need to consume regular soft drinks in moderation," said Beverage Digest editor John Sicher, who predicted that the new guidelines would not be a big blow for soft drink firms.
Currently, diet sodas account for about 30% of all carbonated soft drink sales, with full-calorie sodas making up 70%, according to Beverage Digest .Still, the findings, combined with high health costs linked with obesity,may renew interest in a soft drink tax,a policy favoured by Dr Thomas Frieden, director of the US Centres for Disease Control and Prevention, but not officially sanctioned by the Obama administration.
Frieden said during a news conference last month that soda and sugarsweetened beverages "play a particular role in the obesity epidemic," noting that Americans consume an extra 150 calories more per day in sugarsweetened beverages than two to three decades ago.
He said adding a tax to soft drinks might curb consumption. Obesityrelated diseases account for nearly 10%of all medical spending in the United States, or an estimated $147 billion a year, according to a CDC-sponsored study released last month.
More than 26% of Americans are obese, which means they have a body mass index of 30 or higher. BMI is equal to weight in kilograms divided by height in meters squared. A person 5 feet 5 inches tall (165 cm) becomes obese at 180 pounds (82 kg).
Hurt by an ailing economy and expanding waistlines, consumers have cut back on soft drinks. After years of growth, US carbonated soft drink sales by volume fell for the first time in 2005, and the decline has accelerated each year since.
Volumes fell 3% last year, the biggest drop since at least the early 1980s,Beverage Digest , a US-based industry publication, reported in March.
The AHA's new guidelines say women should eat no more than 100 calories of added sugar per day, or six teaspoons (25 grams), while most men should keep it to just 150 calories or nine teaspoons (37.5 grams).
That's far below the 22 teaspoons (90 grams) or 355 calories of added sugar consumed by the average American each day, according to a 2004 government survey.
The AHA also singled out soft drinks as the top source of "discretionary"sugar calories.
Edward Jones analyst Jack Russo said the new guidelines could give some consumers sticker shock in the short term but also might encourage PepsiCo Inc and Coca-Cola Co to focus even more on developing healthier options.
"In some crazy way, even if this gains some groundswell, these two companies are pretty quick to have a Plan B ready and they could actually develop some new products, even on the soft drink side, that could be touted as healthier and could improve their businesses," he said.
Russo cited McDonald's Corp as an example, saying the fast-food chain has had success with healthier menu items, such as salads and apple dippers,after its menu was criticised by health activists."As we continue to morph into more health and wellness issues,this is going to be a recurring focus.The quicker these companies are to react to this the better."
He said both companies are developing lower-calorie drinks, such as those made with a new natural, nocalorie sweetener derived from the stevia plant.
Coke, PepsiCo and other soft drink makers have seized upon the growing move toward low-calorie products, expanding in recent years their offerings of diet sodas, bottled waters and other healthier drinks.
"The industry has been talking about the need to consume regular soft drinks in moderation," said Beverage Digest editor John Sicher, who predicted that the new guidelines would not be a big blow for soft drink firms.
Currently, diet sodas account for about 30% of all carbonated soft drink sales, with full-calorie sodas making up 70%, according to Beverage Digest .Still, the findings, combined with high health costs linked with obesity,may renew interest in a soft drink tax,a policy favoured by Dr Thomas Frieden, director of the US Centres for Disease Control and Prevention, but not officially sanctioned by the Obama administration.
Frieden said during a news conference last month that soda and sugarsweetened beverages "play a particular role in the obesity epidemic," noting that Americans consume an extra 150 calories more per day in sugarsweetened beverages than two to three decades ago.
He said adding a tax to soft drinks might curb consumption. Obesityrelated diseases account for nearly 10%of all medical spending in the United States, or an estimated $147 billion a year, according to a CDC-sponsored study released last month.
More than 26% of Americans are obese, which means they have a body mass index of 30 or higher. BMI is equal to weight in kilograms divided by height in meters squared. A person 5 feet 5 inches tall (165 cm) becomes obese at 180 pounds (82 kg).
SAY ALOHA TO OHANA, AN AROMATIC CAFE ON SUKHUMVIT 24
With the rise of Bangkok's cafe culture, trendy WiFi Internet spots and on-the-go lifestyles means that, when we do stop for refreshments, we're likely to want something unique of high quality or perhaps a healthy or a tasty light bite.
The Ohana Cafe offers a friendly environment with freshly brewed coffee, tea, shakes and smoothies and unforgettable, mouth-watering desserts that are delicately composed with a personal touch.
The Hawaiian word ohana means "family", which best describes the homely atmosphere of the cafe and you certainly don't have to be a coffee connoisseur to recognise the good coffee you're served here!
Beans carefully selected from Hawaii, Colombia, Kenya, Bfazil and northern Thailand are roasted in a boutique roaster en route to becoming creative delights like the signature Ice Expresso Latte.
Costing Bt90, it's especially for people who revel in relaxing moments.
The pasta set menu for Bt200 includes a choice of spaghetti Alla Bolognese, fettucini alfredo, angel-hair pasta in tomato sauce or futtucini with mushroom and chicken cream suace. These come with soup0, salad and dessert.
Then there's a selection of snadwiches and panini. Try the parma ham sandwich with rocket and tomato and the salami and provolone cheese panini, each Bt240.
Other recommended desserts are the chocolate Mauna Loa for Bt200 and the vanilla a waffle with fresh strawberry cram and vanilla ice cream for Bt150, and there are more homemade pastries and croissants available.
The cafe has a small library of travel books, cookbooks and lively magazines, making these and even more attractive sport for those seeking a refreshing escape from the daily grind.
>> SWEET!
- The Ohana Cafe is at 50/4 Sukhumvit Soi 24 and open daily form 9 to 9.
- Call (02) 661 1930 or visit www.Ohana.co.th.
The Ohana Cafe offers a friendly environment with freshly brewed coffee, tea, shakes and smoothies and unforgettable, mouth-watering desserts that are delicately composed with a personal touch.
The Hawaiian word ohana means "family", which best describes the homely atmosphere of the cafe and you certainly don't have to be a coffee connoisseur to recognise the good coffee you're served here!
Beans carefully selected from Hawaii, Colombia, Kenya, Bfazil and northern Thailand are roasted in a boutique roaster en route to becoming creative delights like the signature Ice Expresso Latte.
Costing Bt90, it's especially for people who revel in relaxing moments.
The pasta set menu for Bt200 includes a choice of spaghetti Alla Bolognese, fettucini alfredo, angel-hair pasta in tomato sauce or futtucini with mushroom and chicken cream suace. These come with soup0, salad and dessert.
Then there's a selection of snadwiches and panini. Try the parma ham sandwich with rocket and tomato and the salami and provolone cheese panini, each Bt240.
Other recommended desserts are the chocolate Mauna Loa for Bt200 and the vanilla a waffle with fresh strawberry cram and vanilla ice cream for Bt150, and there are more homemade pastries and croissants available.
The cafe has a small library of travel books, cookbooks and lively magazines, making these and even more attractive sport for those seeking a refreshing escape from the daily grind.
>> SWEET!
- The Ohana Cafe is at 50/4 Sukhumvit Soi 24 and open daily form 9 to 9.
- Call (02) 661 1930 or visit www.Ohana.co.th.
Oishi H1 profits surge 51%
Net profit for Oishi Group in the first half of this year increased 51% year-onyear from 282 million baht to 426 million baht, the highest in five years.
The company reported total sales of 3.42 billion baht, up 23% from the first half of last year. Of the total revenue,1.55 billion came from the food business and the remaining 1.87 billion came from beverages.
President Tan Passakornnatee said its net profit increased beyond its average annual growth of 20-30% because it had lower raw material costs after outlet expansion.
Japanese food has been popular among Thais for several years, and the company hopes to cash in on the craze by offering several Japanese food brands to the market and opening new outlets upcountry.
"We will open more shabushi outlets upcountry to test the market response,and if we get good feedback, we will open Oishi buffet restaurants," he said.
Oishi Group operated 97 Japanese restaurant outlets last year, a number that will rise to 109 this year. The additional outlets include Kazokutei, a new Japanese food brand, at Central Pinklao and Seri Centre on Srinakarin Road.
The company spent 100 million baht on its marketing budget to celebrate its 10th anniversary in the remaining five months of the year.
Oishi plans to spend 200 million baht to open 20 new outlets next year, bringing the total to 129. Its expansion next year will focus on two new food brands including Maido Ookini, cafeteria-style Japanese food, and Kazokutei.
The aggressive expansion should help raise the sales proportion of food to 50%, up from 45% now. Sales are expected to grow by 10% to 7.2 billion baht.
Shares of Oishi closed on the Stock Exchange of Thailand at 40.25 baht, up 75 satang, in trade worth 210,039 baht.
The company reported total sales of 3.42 billion baht, up 23% from the first half of last year. Of the total revenue,1.55 billion came from the food business and the remaining 1.87 billion came from beverages.
President Tan Passakornnatee said its net profit increased beyond its average annual growth of 20-30% because it had lower raw material costs after outlet expansion.
Japanese food has been popular among Thais for several years, and the company hopes to cash in on the craze by offering several Japanese food brands to the market and opening new outlets upcountry.
"We will open more shabushi outlets upcountry to test the market response,and if we get good feedback, we will open Oishi buffet restaurants," he said.
Oishi Group operated 97 Japanese restaurant outlets last year, a number that will rise to 109 this year. The additional outlets include Kazokutei, a new Japanese food brand, at Central Pinklao and Seri Centre on Srinakarin Road.
The company spent 100 million baht on its marketing budget to celebrate its 10th anniversary in the remaining five months of the year.
Oishi plans to spend 200 million baht to open 20 new outlets next year, bringing the total to 129. Its expansion next year will focus on two new food brands including Maido Ookini, cafeteria-style Japanese food, and Kazokutei.
The aggressive expansion should help raise the sales proportion of food to 50%, up from 45% now. Sales are expected to grow by 10% to 7.2 billion baht.
Shares of Oishi closed on the Stock Exchange of Thailand at 40.25 baht, up 75 satang, in trade worth 210,039 baht.
JAPANESE RESTAURANTS' GROWTH NEXT PRIORITY
Oishi Group will spend next year expanding its Japanese restaurant chain after having built up its bottled green-tea business.
"We expect to increase the contribution of our Japanese restaurants to 50 per cent next year, up from 45 per cent currently, as a balance to the other half of beverage products, which are Oishi ready-to-drink green tea, Amino OK functional drinks and Coffio ready-to-drink coffee," CEO Tan Passakornnatee said yeaterday.
"The strategic move will help the group to diversify risks to many businesses," he said.
The group will allocate Bt200 million to open 20 outlets, mainly Shabushi and its other new concepts.
The Kazokutei soba and udon-noodle format will debut by mid-November in either the Central Pinklao or Seri Centre shopping mall, while maido Okini cafeteria was launched in midyear.
By year-end, Oishi expects to have 109 Japanese restaurants operating, up from 100 now. About five of the new branches will be Shabushi restaurants.
"We have already passed the fearful period of a deepening slump in the economy. I myself am confident and quite proactive about the future," he said.
The economy this quarter should be better than the first two quarters, driven by improving stock and realestate markets, subdued oil prices and higher employment, he said.
"We have seen a significant increase both in numbers of customers and their average spending by 3-4 per cent since the middle of this year," he said.
Oishi Group scored 51-per-cent growth in net profit in the first six months, the best performance in five years.
First-half sales zoomed 23 per cent to Bt3.4 billion over the same half last year, of which the Japanese restaurant business was up 24.5 per cent Bt1.55 billion and the beverage business up 21.1 per cent to Bt1.86 billion.
While the net profit of the Japanese restaurant business declined slightly by 0.7 per cent, the net profit of the beverage business, thanks mainly to Oishi green tea, skyrocketed 72.7 per cent.
"We enjoyed strong sales growth in the first six months of this year, which caused a dramatic decline in fixed costs, such as labour," he said.
Oishi Group commands 40 per cent of the Bt7-billion-plus Japanese restaurant market.
"We expect to increase the contribution of our Japanese restaurants to 50 per cent next year, up from 45 per cent currently, as a balance to the other half of beverage products, which are Oishi ready-to-drink green tea, Amino OK functional drinks and Coffio ready-to-drink coffee," CEO Tan Passakornnatee said yeaterday.
"The strategic move will help the group to diversify risks to many businesses," he said.
The group will allocate Bt200 million to open 20 outlets, mainly Shabushi and its other new concepts.
The Kazokutei soba and udon-noodle format will debut by mid-November in either the Central Pinklao or Seri Centre shopping mall, while maido Okini cafeteria was launched in midyear.
By year-end, Oishi expects to have 109 Japanese restaurants operating, up from 100 now. About five of the new branches will be Shabushi restaurants.
"We have already passed the fearful period of a deepening slump in the economy. I myself am confident and quite proactive about the future," he said.
The economy this quarter should be better than the first two quarters, driven by improving stock and realestate markets, subdued oil prices and higher employment, he said.
"We have seen a significant increase both in numbers of customers and their average spending by 3-4 per cent since the middle of this year," he said.
Oishi Group scored 51-per-cent growth in net profit in the first six months, the best performance in five years.
First-half sales zoomed 23 per cent to Bt3.4 billion over the same half last year, of which the Japanese restaurant business was up 24.5 per cent Bt1.55 billion and the beverage business up 21.1 per cent to Bt1.86 billion.
While the net profit of the Japanese restaurant business declined slightly by 0.7 per cent, the net profit of the beverage business, thanks mainly to Oishi green tea, skyrocketed 72.7 per cent.
"We enjoyed strong sales growth in the first six months of this year, which caused a dramatic decline in fixed costs, such as labour," he said.
Oishi Group commands 40 per cent of the Bt7-billion-plus Japanese restaurant market.
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