King Power Group is aiming for duty-free sales to reach 80% of the 2019 tally this year via both offline and online channels, as well as through new lifestyle retail stores, amidst a slow recovery of the Chinese market.
Chief executive Aiyawatt Srivaddhanaprabha said that Airports of Thailand's (AoT) target for 64-66 million air passengers at Suvarnabhumi Airport this year could lead to sales growth at its duty-free stores.
Last year, King Power renovated its stores at the airport, featuring more than 1,400 brands spanning 40,000 square metres for retail, alongside an expansion of its upgraded online platform, said Mr Aiyawatt.
Online shopping has played a vital role over the past three years, he said.
In 2020, King Power's online sales rose 1,100% and saw a 100% increase in the customer base, said Mr Aiyawatt.
Its online retail store currently makes up around 10% of total revenue, and the firm aims to grow the portion to 30% by 2025.
The firm also aims for a two-fold growth of online sales revenue by 2025, compared to 2019.
King Power recently announced a merger of its non-duty-free beauty and lifestyle retail service FIRSTER, which accommodates 90,000 products, in addition to its existing duty-free e-commerce platform.
The new platform can target both customers who have an international travel plan and foreigners or locals who stay in Thailand.
However, Mr Aiyawatt said a challenge remains with the resumption of the Chinese market, its major customer, which was recovering more slowly than expected.
Chinese customers currently account for only 30% of the 2019 numbers, he said.
As the Secondary Aircraft Concourse at Suvarnabhumi Airport is set to open this September, King Power has already invested over 2 billion baht in duty-free and commercial areas at the new site.
According to AoT, King Power has secured 3,000 sq m for duty-free shops and 4,000 sq m for other commercial purposes.
King Power also employs youthful presenters such as JJ Krissanapoom, Thanaerng Kanyawee, Jeff Satur and girl group 4EVE, to help increase young customers to 20% of the total.
The firm is also looking for a new retail project of more than 10,000 sq m to open in Bangkok's central business district next year.
In 2021, King Power International earned 17.3 billion baht in revenue and posted a loss of 2.5 billion baht, while King Power Duty Free generated 1.6 billion baht in revenue and recorded a loss of 2.8 billion. King Power Suvarnabhumi earned 282 million baht in revenue that year, and made a loss of 42 million.
