CENTRAL Group – CEO Challenge 2016
CENTRAL Group – CEO Challenge 2016
Central Group proudly presents ‘2015 business performance’ and marketing direction in 2016.
- Domestic Investment Expansion:
New malls, hotels, stores, and brands
- Success of Investment in Europe and Business Plan:
Excellent revenue and pride of the Thais as Thai-owned department stores
- Aggressive Expansion of Centara Hotels and Resorts to Overseas
- Integration with Public Sector to Support ‘Public – Private Projects’ and Drive the Economy and Society
- Domestic Business
- Business Performance in 2015
– Total Revenue: 283,450 million baht (13.5% growth, comparing to the revenue in 2014 at 249,548 million baht)
– GDP Growth: 3.7%
- Marketing Plan 2016
– Expect 18.9% growth (Approximately 337,040 million baht)
– Investment Budget: 39,000million baht
- Domestic Investment
- Late July 2016: Central Plaza Nakornsrithammarat
The first complete largest lifestyle shopping complex in Nakornsrithammaratwith more than 125,000 sq.m. (3,500 million baht investment). The mall is located on a high potential location with more than 300 shops available.
- 2016: Central Plaza Nokornratchasima
The most complete lifestyle shopping complex in Nokornratchasima with international design innovation on the high potential location, functioning like the door that connects Thailand and its neighboring countries. The shopping complex has more than 400 shops available with ‘RiverWalk’ lifestyle zone as recreational area.
- Late 2017: Central Phuket (Phase 2)
A world-class retail shopping centrewith‘The Masterpiece of Phuket: A Cutting Edge Design’ concept located in the heart of Phuket at Tainan intersection. Tainan intersection is the best business district in Phuket that is not far from the international airport, functioning like a lifestyle hub that attracts high-end tourists and make Phuket a top tourist destination. There are 2 styles of lifestyle shopping centres: dining zone and world-class attraction.
1.3.2 Department Stores
– 2 New Robinson department stores: ‘Robinson Nakhonsrithammarat 2’ (located in Central Plaza Nakhonsrithammarat) and ‘Robinson Lifestyle Center’ in Lopburi. Robinson Lifestyle Center in Lopburiwas built with the concept “EAT SHOP PLAY”. It is the first store that uses solar cells to generate electricity which helps reduce around 11% of electricity consumption from Provincial Electricity Authority.
– 3 Escent Condominiums by Central Group
- EscentChiangmai (400 units): Located on Chiangmai – Doisaked Rd.
- EscentRayong (419 units): Located on Ban Nongmahad – Ban Chaikapom, Chengnern, Rayong
- EscentKonhaen (408 unit): Located on Mitrapap Rd., AmphurMuang, Konkaen
1.3.4 Mall and Department Store Renovation
– Mall: Pattaya center, CentralWorld, Rama 3
– Central Department Store: Chidlom, Zen, Phuket, Bangna, Pinklao
– Robinson: Rama 9, Chiangmai, Ratchaburi, Trang, Chanhaburi, Saraburi, Nakornsrithammarat 1
– Robins: Ho Chi Minh City
- Early 2016: Opened Khum Kham Convention Centre, Chiangmai
- January 2016: Opened Centra Maris Resort Jomtien, Pattaya
- 2nd Quarter 2016: Opened Centara Avenue Hotel Pattaya
- 3rd Quarter 2016: Plan to open CentraPhuPano Resort
- 4th Quarter 2016: Plan to open ‘COSI’ hotels which are affordable accommodation with approximately 150 hotel rooms in 6 locations in Thailand (Samui, Chiangmai, Pattaya etc.)
- October 2016: Grand opening of Park Hyatt Bangkok (the 6-star hotel with only 36 branches worldwide) at Central Embassy
– Central Group plans to open 420 stores in total, including Central Restaurant Group, Central Marketing Group, Central Food Hall, Tops Market, Tops Superstores, Tops Daily, Family Mart, Komonoya, Matsumoto Kiyoshi, Supersports, OfficeMate, B2S, Power Buy, and Thai Watsadu.
- International Business
- Central Group’s Business Expansion
- 8 Countries in the West: Italy, Germany, Denmark, Turkey, Qartar, Oman, Ethiopia, Cuba
- 9 Countries in the East: Thailand, Vietnam, Laos, Malaysia, Singapore, Indonesia, China, Sri Lanka, and Maldives
- International Business Contribution Expansion since la Rinascente buyout in 2011
2011: 5% contribution to Central Group’s revenue
2012: 9% contribution to Central Group’s revenue
2013: 11% contribution to Central Group’s revenue
2014: 12% contribution to Central Group’s revenue
2015: 18% contribution to Central Group’s revenue
2016: expect 24%contribution toCentral Group’s revenue
- Central Group Employees: 62,701 employees in Thailand and 14,712 employees overseas
- Total Revenue from Central Group’s Department Store in Europe
22,000 million baht (24% of Central Department Store Group’s revenue) *Thailand and overseas
30,000 million baht (30% of Central Department Store Group’s revenue) *Thailand and overseas
Central Group expects 51,000 million baht (40% of Central Department Store Group’s revenue) *Thailand and overseas, and expects 20% growth in annual revenue during 2015 – 2020.
- Investment in Europe
Central Group plans to spend on department store renovation in Europe around 10,400 million baht during 2016 – 2020 (la Rinascente: 3,600 million baht, Illum: 2,400 baht, and the KaDeWe Group: 4,400 million baht).
- Department Stores in Europe
With more than 69 years of retail business expertise, Central Group aims to create a must-visitluxury tourist destination called ‘Central One World of Luxury’, including 7 department stores which are la Rinascente (Italy), Illum (Denmark), KaDeWe (Germany), Alsterhaus (Germany), Oberpollinger (Germany), Central Chidlom (Thailand), and Central Embassy (Thailand).
Central Group focuses to emphasize business expansion that creates pleasant experience for customers, for instance by a wide range of merchandise, interesting interior and exterior design etc.
Central Group as a Thai-owned department store hopes that every Thai will be proud of the reputation in international business expansion and development we have made.
- La Rinascente (Milan, Italy)
La Rinascente has been bought out by Central group since 2011. The department store is located in Milan, Italy, celebrating its 150 years old in 2015. La Rinascente was ranked 1 of 13 ‘Incredible Department Stores to Shop at In Your Lifetime’ recommended by the famous online newspapers website ‘UK Business Insider’. The department store has 11 branches that span across 10 key cities in Italy: Milan, 2 in Rome, Florence, Catania, Cagliari, Palermo, Genoa, Padua, Monza, and Turin.
- La Rinascente (Rome, Italy)
La Rinascente Rome is another flagship store which will be opened in 2017. The building retains 1854 original façade as part of the historical city center. Moreover, ‘AquedottoVergine’; a 2,000-year-old Roman aqueduct (bridge like system built to transport water from one location to another) which passes exactly through the foundation of the department store was discovered while building the store. Therefore, the basement floor is not only a design supermarket, but also a museum and exhibition area.
- KaDeWe (Berlin, Germany)
The abbreviation ‘KaDeWe’ originally stands for ‘Kaufhaus des Westen’ which means Department Store of the West, however, the brand ‘KaDeWe’ has established itself and the department store is mostly known under this name. It is the biggest department store in Europe located on Tauentzienstrasse Rd. which is the main shopping street in West Berlin (60,000 sq.m. which is the size of the Olympic Stadium in Berlin plus four football fields) with more than 10 million visitors per year. The store is currently 109 years old. It was ranked 4.5 stars by Trip Advisor, which overturned Harrods (4 stars) and Lafayette (4 stars). Moreover, KaDeWe was also recommended by the renowned online newspapers website ‘UK Business Insider’ as 1 of 13 ‘Incredible Department Stores to Shop at In Your Lifetime’ and ranked in ‘World’s Most Spectacular Department Store’ by the famous American travel magazine ‘Travel+Leisure’ in 2016.
As one of Berlin’s iconic destinations, KaDeWe has enjoyed the presence of numerous world leaders including Siam’s King Chulalongkorn, Princesses Beatrice and Eugenie of York, as well as other presidents and politicians from all over the world.
In King Chulalongkorn’s Royal Writing ‘Klai Ban’, there is an explanation about the elegance of KaDeWe as a large department store with a wide range of merchandise and excellent customer services in his royal visit to Europe in 1907.
- Alsterhaus (Hamburg, Germany)
Alsterhaus is a 104-year-old department store (24,000 sq.m.) located on Jungfernsteig which is a highly frequented top tier shopping destination, standing out as the one and only luxury department store in Hamburg. The word ‘Alsterhaus’ signifies ‘the house of the lake’ due to its strategic location right beside the beautiful Binnealster Lake in Hamburg. There are more than 30,000 – 40,000 store visitors per day or 5 million store visitors per year. Rare luxury accessories such as pleureuse (ostrich feather trimming for ladies’ hats) have helped build Alsterhaus long-lasting reputation as a purveyor of exquisite luxury items up until the present.
- Oberpollinger (Munich, Germany)
Oberpollinger is located in the heart of Munich on NeuhauserStraße Rd. It is the first luxury department store in Munich (40,000 sq.m.), currently 111 years old. The store has approximately 30,000 visitors per day.
2.5.6 Illum (Copenhagen, Denmark)
Illum (20,000 sq.m.) is located on Stroget Rd. in Copenhagen, Denmark which is the longest shopping district in Europe. The department store is 125 years old. The store blends beautifully into the historical city center with the retention of its original architectural features. Yet, inside, it is full of wonderful surprises in terms of contemporary design and shopping ambience. The store has more than 6.5 million people visit the store per year.
Illumhas selected luxury products from globally renowned high-end brands like Salvatore Ferragamo, Celine, Balenciaga, Valentino, and Saint Laurent. Itwas named ‘Retail Destination of the Year’ in 2008 at the World Retail Congress in Barcelona and ‘World’s Most Spectacular Department Store’ by ‘Travel+Leisure’ in 2016.
- Centara Hotels and Resorts
Central Group totally has 70 hotels (14,583 hotel rooms) in 11 countries (top 5 countries in 2015 are China, Thailand, UK, Australia, and Russia respectively).
- Central group currently has 41 hotels (7,867 hotel rooms) in 5 countries: Thailand (35 hotels), Vietnam (2 hotels), Maldives (2 hotels), Sri Lanka (1 hotel), and Indonesia (1 hotel), separated into 2 categories which are ‘Owned by Central Group’ (15 hotels: 13 hotels in Thailand and 2 hotels in Maldives) and ‘Managed by Central Group’ (26 hotels).
- Central Group has signed new management contract with 29 more hotels (6,716 hotel rooms). However, Centara Muscat Hotel in Oman, Centara Grand West Bay Hotel Doha in Qartar, and Centara Grand Lykia World Resort& Spa in Turkey will be opened in 3rd quarter 2016.
- Overseas hotels owned by Central Group: 2 hotels in Maldives (around 3,517 million baht investment)
- Centara Grand Island Resort & Spa Maldives (5stars) = 2,051 million baht
- CentaraRasFushi Resort & Spa Maldives (4stars) = 1,466 million baht
- Central Group plans to invest in 2 more four-star hotels in Maldives (expected to be opened in 2019)
- A project to invest in four-star hotels in Dubai, UAE
- In Dubai, Central Group expects to invest 2,500 million baht (40% joint venture) with Nakheel, Dubai-based developer to build four-star beachfront resorts with 550 hotel rooms and water park at Deira Islands.
- Public – Private Projects
SMEs and Communities
- Support SMEs to earn more income by helping improve from the local level to SMEs entrepreneurs as follows
- Community Products:
Get into the areas to meet the local and help develop community products from the beginning like product design, packaging factory etc. to market expansion in Central Group’s stores (Central food Hall, Tops, Thai Watsadu, homeWorks) to generate income for the community.
- Buy agricultural products directly from local communities to sell at Tops and set up training for agriculturists to generate sustainable income for the local.
- Support product fairs and exhibition such as SMEs fairs (in collaboration with Ministry of Commerce and the Thai Chamber of Commerce), OTOP fairs by CPN
- Big Brother Project: Set up SMEs seminars and Mini Business Matching workshops (first time in May 2016) as well as support the pop up space marketplace.
In 2015, the products sold in Tops, Central Food Hall, and Thai Watsadu totally generated 621 million baht (separated into Community Products: 247 million baht, OTOP: 168 million baht, and SMEs products 206 million baht) and expect 790 million baht revenue in 2016 (separated into Community Products: 288 million baht, OTOP: 227 million baht, and SMEs products 275 million baht).