Thailand

Central Group surging ahead with expansion, e-commerce

Central Group, which owns Central Embassy mall (above) in Bangkok, has been expanding in the region. CEO Tos Chirathivat (below) said it "decided to enter the AEC market with a full commitment to grow Asean markets successfully, in tandem with busine
Central Group, which owns Central Embassy mall (above) in Bangkok, has been expanding in the region. PHOTOS: GETTY IMAGES, THE NATION/ASIA NEWS NETWORK
CEO Tos Chirathivat said it "decided to enter the AEC market with a full commitment to grow Asean markets successfully, in tandem with business operations".
CEO Tos Chirathivat said it "decided to enter the AEC market with a full commitment to grow Asean markets successfully, in tandem with business operations".PHOTOS: GETTY IMAGES, THE NATION/ASIA NEWS NETWORK

BANGKOK • Central Group, Thailand's largest retailer, is in expansion mode in Asean and Europe.

The retail and service conglomerate behind Central Embassy mall in Bangkok has been growing for the past few years, opening or acquiring operations in Indonesia, Malaysia and Vietnam in this region, and in Denmark and Italy in Europe.

"We have seen opportunities in Asean, with the insight that Asean countries have a similar lifestyle to that in Thailand," said Mr Tos Chirathivat, executive chairman and chief executive of the group.

"We decided to enter the Asean Economic Community market with a full commitment to grow Asean markets successfully, in tandem with business operations."

In Vietnam, the group has opened two Robins stores, in Hanoi and Ho Chi Minh, and formed a joint venture with Vietnam's leading electronics retailer, Nguyen Kim Trading Joint Stock Company, and Vietnam's supermarket chain, Lanchi Mart. Last year, it spent US$1.05 billion (S$1.4 billion) to acquire Big C supermarkets in Vietnam, previously owned by France's Casino Group, to strengthen its business in Asean.

Meanwhile, in Indonesia, the group opened two Central department stores while in Malaysia, it is in the process of constructing Central I-City, a lifestyle mall. Scheduled to open in late next year, it will boast close to 350 retail outlets. Plans include a performing arts and convention centre, a medical tourism hub and hotels, reports said.

The group is also giving priority to e-commerce, given global trends that is seeing worldwide trade shifting from traditional to modern, and now cyber trade. Retailers must adapt quickly to catch market trends, said Mr Tos.

  • Reaching beyond borders to grow

  • Companies across Asean are looking to ramp up growth. Yesterday, we brought you views from corporate leaders and businessmen from Singapore and Malaysia who run extensive regional operations. Today's feature puts the spotlight on business chiefs from Thailand and Vietnam who also have ambitious expansion plans.

He added that as a lifestyle and service retail leader, Central Group is looking to continually develop and add to its business success.

The interesting challenge, said Mr Tos, 53, is to "build Asean as a one-region trade hub", which will help stimulate rapid growth in the Asean economies.

This vision entails constructing necessary infrastructure, easing of border rules, labour movements, banking and currency facilities, and equal treatment on foreign direct investment.

THE NATION/ASIA NEWS NETWORK

A version of this article appeared in the print edition of The Straits Times on August 11, 2017, with the headline 'Central Group surging ahead with expansion, e-commerce'. Print Edition | Subscribe