JWD Speeding Up Home Office Moving Service Growth, to Increase Urban Self-Storage Space to Attract B2C Customers amid Consumers# Willingness to Pay Professionals for Convenience

Stocks and Financial Services Press Releases Thursday July 6, 2017 11:47
Bangkok--6 Jul--MT Multimedia

JWD, a leading fully integrated in-land logistics service provider, is working to achieve a healthy growth in revenue from its moving business to benefit from the growing tendency among consumers to secure professional moving services for convenience. It is seeking to add more B2C customers to the current customer base, which comprises largely of B2B customers, having introduced the self-storage and box-storage services to provide solutions to prospective customers who demand additional storage space and residents of condominium units with insufficient space. It is also going to launch three to five new sites in urban areas in the next few years and developing an application to enhance customer service.

Mr Charvanin Bunditkitsada, Chairman of the Executive Committee and Chief Executive Officer (CEO) of JWD InfoLogistics Public Company Limited (JWD), a leading fully integrated in-land logistics service provider, revealed that, seeing high potential for growth in the moving business run by JVK International Movers Ltd., a JWD company, due to the changing consumer behaviour involving an increasing preference for convenient professional moving service, JWD is now expanding its moving service to ensure that the FY2017 group revenue growth will be at least 7%. He noted that, for FY2016, JVK's total sales of THB 256 million accounted for 11.5% of total group revenue.

JWD is among the first operators of moving services in Thailand. It began in 1979 by transporting furniture items for repatriating embassy personnel in the country, before expanding the business to provide integrated services in both domestic and overseas markets. The services now include i) moving of home furniture and household items (for buyers of single homes, duplexes and townhomes in Land & Houses estate projects in Greater Bangkok and Phra Nakhon Si Ayuttthaya, as engaged by Land & Houses PCL); ii) moving of office furniture; iii) packaging, making of wooden crates and boxes and moving of heavy machinery, which require employment of experts and specialised lifting equipment and tools, e.g. cabins for handling of items requiring wall removal to allow items to be moved from high-rise buildings; and iv) moving of medical tools, devices and apparatuses and innovative items at trade exhibitions, including packaging and moving of priceless artworks and relics that requires expertise and special handling methods. The majority of its customers are business organisations and government agencies, including those organising the Metalex event or relocating their government complex or ancient relics of the National Museum. It currently maintains four branch offices in CLMV markets (i.e. Cambodia, Laos, Myanmar and Vietnam) and 32 overseas sales offices that cover all continents.

In FY2017, a growth in moving service will be contributed significantly by domestic and international machinery moving, which is likely to post a healthy growth rate as businesses (e.g. textile or food businesses) are expanding their manufacturing bases both domestically and internationally, especially in the CLMV markets. Exhibit and artwork moving services are also forecasted to have high growth rates, given year-round events at Impact, Muang Thong Thani and BITEC Bangna, and the rising number of exhibitors, which will positively affect moving business.

"What differentiates us is our ability to offer high quality services using efficiency-enhancing technologies, e.g barcoding, sort coding for different office departments, etc. We are also ISO-certified and an affiliate of FIDI, the global alliance of professional international moving and relocation companies. We have always focused our efforts to ensure precision and high quality and timely service, which have often led to referrals by our previous customers who have been impressed by our services," he said.

The CEO added that recently the company has adopted a plan to increase revenue through introduction of three to five new self-storage and box-storage sites in inner Bangkok areas over the next few years (the existing facility is situated on Krungthep Kritha Road and has 80 rooms) to attract retail customers who are residents of condominiums or apartments with limited storage space or entrepreneurs (e.g. e-commerce businesses) who need more stocking. It is also developing an application to facilitate service request, payment and retrieval request by customers. These, he noted, will draw new customers and help the company in meeting targets.

"This is a business with high-growth potential and above-average rental rates. Our current average monthly occupancy ratio stands at 70%. The range of self-storage fee rates is THB 3,000 to THB 10,000 per month for a room of 4-30sq m. Properly walled and made of fire-resistant construction material, the rooms are accessible by customers on a 24-hour basis and security-protected by a keycard system. We are also having a promotion campaign, where customers with one-year contracts will enjoy a one-month free storage. As for box-storage service, the minimum fee rate is THB 250 per month, which can be cut to THB 125 per month for customers with contracts of one year or longer", said he.


Latest Press Release

SET welcomes SPRIME REIT on Jan 23

The Stock Exchange of Thailand (SET) will list S Prime Growth Leasehold Real Estate Investment Trust worth THB 5.72 billion (approx. USD 173.26 million) on January 23, 2019, under the ticker symbol "SPRIME ". SET Senior Executive Vice President Manpong...

Empowering ASEAN 4.0 the ways forward to pursue and become ready for the transformation to the digital era

The ASEAN Business Advisory Council (ASEAN BAC) was inaugurated in April 2003 at the ASEAN Secretariat in Jakarta, Indonesia. Its establishment was mandated by the ASEAN Leaders at their 7th ASEAN Summit, November 2001 in Bandar Seri Begawan, Brunei...

Fitch Rates KTB Securities# THB Subordinated Debentures #BB-(tha)#

Fitch Ratings (Thailand) has today assigned a National Long-Term Rating of 'BB-(tha)' to KTB Securities (Thailand) Public Company Limited's (KTBST; BB(tha)/Stable) upcoming issue of up to THB400 million in subordinated debentures. The debentures will...

TMB reported 2018 net profit of THB11,601 mn, 34% increase from last year. Coverage ratio was raised to 152% in preparation for IFRS 9 implementation, reflecting the Banks prudent management.

TMB reported 2018 net profit of THB11,601 mn, 34% increase from last year. Coverage ratio was raised to 152% in preparation for IFRS 9 implementation, reflecting the Bank's prudent management. Moving toward 2019, the Bank will continue to further acquire...

TBank#s New CEO committed to challenging 2019 targets against backdrop of average annual profit growth of 10% over past 4 years

Praphan Anupongongarch, formerly chief of auto hire-purchase business, now takes the helm of Thanachart Bank as new CEO. Having introduced his strong management team and adopted both Customer-Centric and Fast & Focused Policies, he aims at...

Related Topics