Franchise model shines as growth platform

“I am the third generation of our family owning a gold traditional retail business in Nonthaburi province. With long experience in the business, I saw that the business faced high competition,” Kosin said.
 “Then I thought of how to find a new business model to drive growth in our family business. As a result, I learned about and set up a franchise system for a gold retailing franchise business in 2015.”
The following year, the company began with its first franchisee in Chiang Kam district, Phayao province, with a franchisee investment value of Bt6.9 million per shop.
Kosin said that the company’s set-up cost for its franchisee was Bt6.9 million, with Bt2.6 million in total for gold bar and gold jewellery products for sale in the shop, with the rest for shop construction and decoration, the set-up a security system, staff training, and for training about the business system.
“We decided to set up the franchise system when we saw the demand from investors who wanted to open a gold shop, but most of them did not have the knowledge on how to set up the business when most of the gold traditional retail businesses are family operated. 
“Most of them carry out the business from generation to generation. This makes it difficult for newcomers to do this business, while, the business also faces high competition. 
“When we need growth, we have to find partners to expand our business growth. The franchise system is win-win situation for us to expand our business and also create an investment opportunity for newcomers who are interested in doing this business,” Kosin said.
From the first franchisee-run outlet in Phayao province in 2016, the company opened the second store under this model in Bhuhamonthon district, Nakhon Pathom province, this year. It aims to sign agreements to open 10 more stores under the franchise system in 2018.
Meanwhile, the company also plans to open five flagship stores in 2018 with an investment budget of Bt12 million per store nationwide. Currently, the company has four flagship stores in Nonthaubri province and the next one will be in Udon Thani province.
The company also aims to have 50 franchisees by 2020. This will boost its total sale value to rise from an average of Bt100 million to Bt1 billion in 2020, he said.
Under an aggressive business expansion from 2018-20, the company also plans to seek a listing on the Market for Alternative Investment of the Stock Exchange of Thailand in 2020.
“We are the third generation of our family. The way to do business is drive for sustainable growth and ensure strong growth for the long term at the level of my generation,” Kosin said.