“We have acknowledged that Index Living Mall’s customers do not only buy furniture, home-decoration accessories and home-related services, but they are also seeking home appliances. With this consumer insight, we will continue to add more Power One stores inside our malls under a customer-centric approach,” Kwanchai Kitkongkajornchai, senior vice president for marketing, said yesterday.

He said that gaining a better understanding about the consumer journey was crucial for today’s retail business, and that providing only furniture and related products did not appear to be enough to meet customers’ broader needs.

Since introducing the Power One brand two years ago, Index Living Mall has enjoyed significant growth in the sales of home appliances.

Last year’s sales revenue at Power One surged by 73 per cent to Bt730 million, while this year’s revenue is expected to reach Bt1 billion, representing growth of 28 per cent and a 10-per-cent net profit margin.

Thirty-eight per cent of the Power One income was from audio and visual products, followed by 36 per cent from home appliances, 14 per cent from small appliances, and 12 per cent from kitchen appliances. The key driver for business growth so far has been the store’s “buffet-set promotion”, the executive said, adding that Power One customers could mix and match any two electrical or electronic products for a special discounted price when they bought furniture.

“When looking at this in detail, we have found that over 65 per cent of visitors to our malls now purchase home-appliance products on top of furniture. More interestingly, this number also continues to rise,” Kwanchai said.

To cash in on this trend, the company targets having a total of 40 Power One branches within the next five years.

There are currently 23 branches, six of which are located in Bangkok.

He said some of the 17 additional branches under the company’s Bt340-million investment programme would be attached to existing branches of Index Living Mall, while others would be new expansions.

The investment cost per location is around Bt20 million, with each Power One store occupying around 500 square metres. Following the expansion, the company is hoping to generate annual revenue of at least Bt3 billion from home-appliance sales in five years’ time, with the Power One business unit expected to contribute at least 15 per cent of the group’s revenue.

Last year, Thailand’s home electrical-appliances market was valued at Bt80 billion, with television sales taking a 40-per-cent share, followed by air-conditioners, washing machines and refrigerators.

The sector is expected to see growth of about 5 per cent this year, in line with the domestic economic situation.