Industry conditions and competition
In 2021, the economic situation in Thailand is still inevitable due to COVID-19. The real estate sector has been affected, with slowdowns in construction or the opening of new projects which affects intense of business competition. Also many business had to close down including the company’s partner. However, the government has announced periodic reopening of the country. All sectors must adapt greatly to cope with the COVID-19 epidemic situation, including various measures. People’s lifestyles have to change into the New Normal way.
In the company’s outlets was classified as a small shop not a shopping center. Therefore, our business can be still operate and we have closely increased disease control measures recommended by Ministry of Public Health control. Thr company’s employees are fully vaccinated to build confidence for all employees and customers. So that customers who used to use services of large shopping centers turned to choose the company’s channels. The company has adjusted its marketing strategy to suit this epidemic situation by maintaining the standard of aggressive maeketing. Increasingly being use communication tools to catch up with customer, such as sending out promotional materials by social media chat channels. Aiming to finish the sale without customer going out to outlet, resulting to the satisfaction of work.
In term of cost control policy in 2021, the company still has measures to increase work efficiency of employees in all sectors. Audit and cost control in every working process. The thing that we get from working in the “New Normal” style is the reduction of transportation expense.
In term of product, the company has developed new products to penetrate the upper market by producing large tiles of 60x120, 80x80 and 30x50. More than 200 outlets still being use to be a distribution channel which can distribute products throughout the country in a short time. Mostly of the price in range of 200-400 baht per squaremeter, which can make the average price better. Sales of these products continue to increase and we will continue to develop in other sizes in 2022.
At the end of the year, the company began to produce porcelain tiles which has more durable, expected to sell on market in early 2022.
The main strategy and potential of the company’s distribution channels covering throughout country. Cost control for maximum efficiency, focus on improving the quality of life in the community, reduce global warming and manage business with good governance to support sustainable growth.
Sales and %Market Share classify by floor and wall tiles business in the ceramic group
Source: Annual performance data year 2019-2020 from the Stock Exchange of Thailand
DCC = Dynasty Ceramic Public Co.Ltd., RCI = Royal Ceramic Industry Public Co.Ltd. ,UMI = The Union Mosaic Industry Public Co. Ltd., COTTO = SCG Ceramic Public Co.Ltd.
Work plans and strategies in 2022
Operational guidelines for 2022 in term of product, the company has developed porcelain tile which has characteristic on low water absorption, high durability and with competitive price in market equivalent to imported tiles. This is to reduce risk in losing market share of import tiles that have been increased during the past year. In term of the outlet management, the company has developed a stock replenishment system refers to ensure products stock for sell in anytime. Increase the development of site data collection system to analysis and evaluate by use enormous data that has been collected but still not useful and waste time of collecting, to reformat and most importantly determine work plan according to the strategy of all channels. Resulting to fast service and in the right point.
In term of outlets image improvement, the company plans to expand 10 more showrooms. From the current number of 60 locations. In addition to make more convenience for customers, also expand size of showroom to be larger than the existing from 400 square meters to at least 1,000 square meters. In order for the company’s partners in construction materials business to rent a space which create products variety and increase traffic in Dynasty’s outlets. Purchase land, relocating outlets that lease has expired. The company has studied on investment, location and income that could be generate from that investment thoroughly. Furthermore, create traffic for construction materials with Dynasty’s outlets located on the main roads throughout of Thailand. The company has also increased rental space for other business such as restaurants, coffee shops, gas stations, charging station, car repair shops and souvenir shops for the rest area that we will use the name Dynasty Park. A project will be start at the outlets in Nakorn Pathom, Hat Yai, Surat Thani, Udon Thani, Prachuap Khiri Khan, Nakhon Si Thammarat, Nakhon Ratchasima, Khon Kaen, Sisaket and Chiang Mai. The first project is expected to be complete in this quarter 4/2022.