SET-listed IT retail chain Com7 Plc has joined hands with Kasikornbank (KBank) to launch a franchise business model to tap into opportunities upcountry.
The company raised its revenue target to reach 20 billion baht this year, growth of 20%. In the past three quarters, the company secured 15 billion baht.
"Consumer IT spending upcountry accounts for 40% of the market and there is a huge opportunity to grow," said Sura Kanittavikul, chief executive of Com7.
The company started its franchise business under the brand BananaStore.com to increase local partners in the provincial market.
"The franchise model will complement our online sales strategy, enabling customers upcountry to pick up products at franchise shops," said Mr Sura.
He said now is the right time for franchising as there are complete product portfolios including smartphones, computers and Apple product lines.
"The union of Com7 and KBank enables small firms to access funds and become IT business owners more easily," said Mr Sura.
Under the franchise model, Com7 will help franchisees to manage, deliver IT products and design a shop format. Average investment is 700,000 to 1.2 million baht and targets are those located in districts without a Com7 shop.
There are some 70 Com7 franchisees and the company aims to have 200 in 2018, which will generate 3 billion baht of revenue over three years. Com7 has 400 existing branches.
