SI NGER THAI LAND PRESENTATI ON Presentation Topics Business - - PowerPoint PPT Presentation
SI NGER THAI LAND PRESENTATI ON Presentation Topics Business Company Overviews I ndustrial Overviews Overviews Competitors 2008 Objectives 2008 Business Credit Approval I mprovement Receivables & Collection I
Financial Highlights
Corporate Social Responsibility
1996-7 1984 1957 1925 1889
First Business in the Kingdom of Thailand, Kiem Hua Heng was appointed to be the distributor for Singer Sewing Machines in Siam The first Company which introduced the Hire Purchase business Expanded business
by distributing top- quality refrigerators Listed on the SET, June 28 1984 Made record annual sales of 8,524 mil THB Total customer base reached 831,000 installment accounts
2009 2007-8 2006 2005 2004
His Majesty the King bestowed the Garuda emblem to Singer Thailand PCL. on May 24, 2004 Focused on motorcycle sales, representing 61% of total sales, with home appliances at 39% Business loss from provisions, write-offs Turnaround plan to solve the motorcycle problems and re- focus on sales of electrical home appliances with a replacement market by developing a trade-in approach
I mprovement Year by Year: -
Procedures
Collection
Historical Background & Milestone
– REFRIGERATOR – CHEST FREEZERS – BEVERAGE COOLER – WINE CELLAR – WATER COOLER – WASHING MACHINE – GAS RANGE – AIR CONDITION – WATER PUMP – MICROWAVE OVEN – ELECTRIC FAN – HOME SHOWER – RICE COOKER – ELECTRIC IRON
– TELEVISION – HOME THEATRE – DVD
– SEWING MACHINE – STREAM PRESS INSURANCE
COMPUTER PC (SVOA) SATELLITE DISH (SAMART) Motorcycle (Suzuki, Yamaha, etc) Agricultural Machine (Choomsin)
SI NGER BRAND NON-SI NGER BRAND Our Products
Strong Customers’ Based
TARGET CUSTOMERS
Officer
Thailand income distribution (2006) 2.2% > 30K 12.0% 10 – 30K
Population w/ income < 10K
Our target ~80%
population
Source : National Statistical Office
Our Customer Base
the Central and East provinces of Thailand
Total Shop : 194 Branches Total Sales Agents : 3,697 Persons
ภาคใต
South
ภาคตะวันออก
East
ภาคกลาง
Central
ภาคเหนือ
North
36.10%
38.45%
7.37%
18.08%
ภาคตะวันออกเฉียงเหนือ
Northeast
Strong Distribution Network
SINGER’s two direct competitors (DE Capital, MIDA) in the direct selling hire purchase industry have decided focus on other industries thereby leaving SINGER as the sole company to sell on direct selling hire purchase
9% 5% 3% 0% 0%
25% 25% 14% 12% 10% 66% 70% 83% 88% 90%
DE MIDA SINGER
Competitors: Direct Competitors
1. Strong Brand Loyalty 2. Expertise on HP System 3. Strong Distribution Coverage 4. “Good Service” Brands 5. Strong Direct Sales Forces 6. Trade-in Campaign 1. Product Differentiation 2. No Production Base 3. Low Education of Sales Forces 4. Rely on Customer Based C & D 1. Fade out of Direct Competitors 2. Multi-Product, Multi-Brand Trade – in
Economic Decline 4. Maintain the Price of Agricultural Products by Government Action 1. Economic Decline 2. Setting up of Modern Trade in upcountry 3. Political Problems 4. Volatility for the Price of Agricultural Products
I mprovement
2008 Business Performance
Filter I
S/A Screening
Apply for HP
Filter II
CCO Screening
(Focus for all C-Shops And some of B & A Shops)
Filter III
UM / SM Review
From S/A must be Reviewed by Shop Manager
Approve HP
Credit Approval Flow
Singer Call Center : Roles and Responsibilities
Shop Manager In case of steps 1- 4 not working, Shop Managers have to assume responsibilities for the loss occurred. If they have not followed the company regulations Salesman’s Guarantors In case of disappearance
guarantors will be sued under their commitments. Salesman In case of the disappearance of the customer and guarantors, salesmen will assume the responsibility by deducting from their security deposits or cash payment in place of customer and guarantors. HP Guarantors In case the customer disappeared or does not have the ability to pay or does not have any valuable assets which can be used for payment then the customer’s guarantors will be sued. HP Customer
remaining balance.
1 2 3 5 4
Since 2006 – Refocus on Electrical Home Appliances
HA 45% Motorcycle 55% Motorcycle 7% HA 93%
2008 2007
YEAR 2004 YEAR 2005 YEAR 2006 YEAR 2007 YEAR 2008
REFRIGERATORS
39,388 35,397 30,868 27,543 36,221
TELEVISION
40,084 36,280 24,976 23,680 26,044
WASHING MACHINE
51,228 47,870 30,193 30,900 56,072
SEWING MACHINE
10,170 10,830 8,715 10,036 11,922
STEREOS/AUDIO
4,027 741 2,926 2,274 1,996
VCD/DVD
4,306 4,845 1,782 4,014 4,196
FREEZER/BEV.COOLER
10,254 9,853 10,387 11,556 16,487
KITCHEN/GAS STOVE
5,645 5,315 4,954 4,345 3,309
AIR CONDITIONER
1,222 1,881 840 1,655 2,726
STRATEGY FOR 2008 AND BEYOND : PUSH UP HOME APPLIANCES
'000 Baht
2006 2007 2008 Revenues 3,813.12 2,514.14 2,355.36 Gross Margin 1,837.80 1,070.93 1,081.10 S&A Expenses 1,735.10 1,291.54 1,046.53 Profit (Loss) from Sales
EBITDA
40.37 Income Before Interest andTax
Net Profit (Loss)
Bank Interest 156.95 107.10 75.14
Gross Margin
Gross Margin
Strategy for the Replacement Market -Trade-in That leads to: -
1. Changing in the proportion of sales HA Vs. MTC
S&A Reduction with the main reasons as below :-
1.) A significant decrease of Bad Debts due to a significant reduction of MTC accounts combine with the improvement of Installment Accounts Quality resulting from the strict pre-approval credit procedures. 2.) A cost reduction programs from the closing of the Non- profitable branches.
Achievement