Our main risk is not achieving our potential, says Mr Adisak.
Please explain Jay Mart’s business model.
Jay Mart has three main businesses: retail mobile phone distribution, rental, and collection. Retail accounts for 90% of our revenue and 60% of gross profits, rental 4% and 4%, and collection 5% of revenues and 18% of gross profits. The rental and collection businesses make our business model different from that of our competitors.
We have more than 200 shops and plan to expand and renovate existing locations. For the rental business, we set up IT Junction with Big C in 27 locations, renting space to dealers who sell mobile phones, Sim cards and accessories. Thus with the combination of both retail and rental locations, we are able to reach a wide range of consumers in all income groups. This year the continuing trend of smartphone adoption has benefited us with higher average selling prices and higher margins.
For the collection business, we are managing 30 billion baht, some of it outsourced to us from other firms and 65% of which we bought ourselves. We have been operating each of these businesses for 15 years so we have developed very strong teams that can manage each business very well.
Continue reading Success on three fronts reflects Jay Mart’s patience