CRC Thaiwatsadu under Central Retail, renowned for its construction materials and home decoration products under the brands Thaiwatsadu and BnB Home, has celebrated a successful 2023 with sales exceeding 40 billion baht, supported by a total investment of 7 billion baht. They also announced a strategic 5-year plan aimed at establishing ‘CRC Thaiwatsadu: No.1 Omnichannel DIY Home Retailer’, striving to lead the retail market in construction materials and home décor across all channels. The plan includes expanding the Hybrid Format (White Format) ‘Thaiwatsadu × BnB Home’, aiming for sustainable growth across economic, social, and environmental dimensions.
Mr. Suthisarn Chirathivat, CEO of CRC Thaiwatsadu under Central Retail, highlighted 2023 as a milestone year, achieving record sales of 40 billion baht after 14 years of operations. This success, backed by a 7 billion baht investment, reflects an 11% annual growth rate. The company has also expanded its Thaiwatsadu and BnB Home branches, opening 14 new locations in a year, bringing the total to 90 branches across 47 provinces, significantly boosting the economic landscape.
Online sales from 2020 to 2023 surged due to adaptations necessitated by the COVID-19 crisis and digital disruption. Rapidly changing consumer behavior has driven the development of comprehensive e-commerce systems, achieving a seamless shopping experience. Online sales soared to 1.4 billion baht over four years, with a CAGR of 145%. Over 5,000 new online shoppers per month contribute to repeat purchases from 60% of existing customers, with the average basket size increasing by 12% YoY. Omnichannel customer numbers, those purchasing both in-store and online, rose by 46% YoY, indicating robust growth across all sales channels.
Mr. Suthisarn attributed their success to core values focused on price and product quality, adhering to a low-cost business model with three main principles:
- Adequate Staff: Employing an appropriate number of staff for each branch size and continuously developing personnel.
- No Fancy Decor: Keeping branch decoration simple and functional.
- Big Volume Orders: Purchasing in high volumes to maintain low costs while ensuring good quality, allowing customers to buy at lower prices.
Additionally, in-house operational developments leveraging staff expertise help reduce costs, such as managing their own transportation fleet, store design, and IT management for internal software development. This approach reduces reliance on external agencies, benefiting customers with competitively priced products.
In enhancing the shopping experience to meet customers’ needs, CRC Thaiwatsadu focuses on Customer Oriented Category Development. This includes expanding product lines and specialized services to cater to every lifestyle related to contractor work and home needs. They are introducing trends such as Solar World, featuring a comprehensive range of Tier 1 quality solar cell system products with installation packages; New Furniture Concept: CALINA Brand, a new furniture zone focusing on DIY wardrobes with 3D design services tailored to space and budget; Bike Shop, a bicycle zone for families who love exercise; Consumer Electronics, a department with leading brand electrical appliances across over 1,000 sq m of display space; and the Construction Showroom, the industry’s first, offering a new experience for selecting large-scale construction products with over 5,000 actual product samples and in-depth information across 450 sq m.
The development of Omnichannel channels remains central, offering diverse purchasing and payment options, affirming O2O (Online-to-Offline) integration, combining offline strengths with online convenience. Despite most customers preferring to visit physical stores, online channels are continuously developed through platforms like websites, social commerce (Line -Chat & Shop, Facebook, Call & Shop, Application, and Call Centre 1308), under the concept of ‘Phygital’, ensuring a seamless shopping experience. Customers receive the same products and services in-store and online, including:
- One Price/One Promotion: Uniform prices and promotions across all channels.
- One Coupon: Discount coupons usable across all channels, easily accessible in the Thaiwatsadu app’s Coupon Wallet.
- One Payment System: Diverse and secure payment options (Credit card, QR PromptPay, 0% Installment, and The1 loyalty points).
- The1 Identity: Linked loyalty points and purchase history accessible with the membership number.
For 2024, Thaiwatsadu plans to expand by opening new branches across Thailand under the Thaiwatsadu and BnB home brands. The goal is to expand all models, including the Red Format (Standard Format), Hybrid Format (White Format), and smaller Blue Format, targeting subcontractors, totaling 103 branches covering over 1,400,000 sq m of retail space.
The 5-year plan (2024-2028) aims to cement their position as the No.1 leader in the comprehensive retail business for construction materials and home furnishing products — the ‘No.1 Omnichannel DIY Home Retailer’ — targeting a 70 billion baht market share and a 12% CAGR business growth rate, outpacing overall market growth. Key strategies include:
- Hybrid Format (White Format): Combining strengths of Thaiwatsadu and BnB home brands into a one-stop destination for various products, increasing sales by up to 30%. By the end of 2024, there will be 16 branches in strategic locations.
- Outperforming Online Shopping: Developing technology for a seamless online shopping experience with unique features such as Daily Steel Price Ordering Online, Mixed Paint & Calculator, and Tailor Made Curtains Calculator. These digital advancements aim to increase online sales by 5 billion baht by 2028, supported by features like Mobile-First DIY, Quick Fulfilment, and a Complete Product Range.
- Supply Chain Movement: Introducing Electric Vehicle (EV) large trucks for product transportation as part of a Green Logistics system. By 2024, 80 EV trucks will be in use, reducing carbon emissions by up to 7,000 tons annually.
Beyond operational advancements, CRC Thaiwatsadu is committed to a green business approach, aligned with Central Retail’s goal to be a Green & Sustainable Retailer, through the ‘ReNEW’ strategic framework with four pillars:
- Re = Reduce Greenhouse Gases: Installing Solar Rooftops to reduce emissions, with installations at 15 new and existing branches in 2024.
- N = Navigate Society Well-being: Supporting community and social development through various projects benefiting over 700,000 people.
- E = Eco-Friendly Product and Packaging: Promoting over 4,000 eco-friendly products and packaging.
- W = Waste Management: Implementing the 3R concept (Reduce, Reuse, Recycle) to manage and reduce waste.
“CRC Thaiwatsadu continues to move forward with strong strategies, ready to face new challenges. We are focused on developing our omnichannel platform. We are confident that in the next 5 years, Thaiwatsadu will become the ultimate leader in the retail business for construction materials and home furnishing products, creating sustainability across economic, social, and environmental dimensions,” concluded Mr. Suthisarn.
