SET-listed IT retail chain Com7 is set to provide rental services for high-end smartphones next month, targeting travellers in a drive for growth.
The company targets 30% market share in the IT industry over the next 4-5 years.
In 2022, Com7 used acquisitions and joint ventures to enter the insurance, pharmacy and financial segments to diversify its business portfolio and add new revenue streams, mainly from services.
"We continue to grow our market share in the IT segment involving computers and smartphones. We have a 20% market share of the 200-billion-baht segment and we are striving to gain 30% in 4-5 years," said Sura Khanittaweekul, chief executive of Com7.
To drive market share, Com7 plans to open more branches, with potentially 70 standalone shops added in the fourth quarter, said Mr Sura.
Branches play a key role in boosting the omni-channel shopping experience, he said.
Online sales accounted for 5% of total revenue, but posted strong annual growth of 65%.
Additionally the company will offer smartphones for rent, particularly high-end models, starting in October, Mr Sura said. People can rent them for a few days for trips.
"Our survey suggests iPhone is one of the most popular brands among users," he said.
This rental model will allow consumers try the products and may accelerate their decision to purchase.
The service offers a maximum rental period of one year, with replacement of upgraded devices afterwards.
The rental model can be applied to other products too, Mr Sura said.
"We need to study the market to check payment discipline among users before pursuing a 'device as a service' model," he said.
Com7 expects revenue growth of at least 20% in 2022, up from 51 billion baht in 2021, driven by the country's reopening and higher average prices of new handsets.
Mr Sura said the company is continuing with its acquisition plans, particularly for businesses in service areas that can provide higher profit margins and drive synergy with the core IT business by leveraging its customer database of more than 3 million.
"Service-related businesses offer high profit margins. Businesses that Com7 wants to acquire need to have a large market size for penetration," he said.
Earlier this year, Com7 and Bangkok Dusit Medical Services, Thailand's largest private hospital network, created a joint venture to make a foray into the drugstore business. Mr Sura said the first shop is scheduled to open in the Thong Lor area in October.
