B-Quik Expands Despite Unrest in Thailand
B-Quik, Thailand’s biggest independent automotive repair organization, saw revenue grow over 30 per cent in the first 6 months of 2010, this despite the unrest in the Thai capital in the month of May. The company has opened two new stores so far this year (one on the island of Phuket and one in Bangkok) and now operates through 64 outlets. For the second half of the year another seven new stores are confirmed and three more are pending. B-Quik adjusted its revenue expectation for 2010 to exceed 2.5 billion Thai baht (£50 million, 61 million Euros). Growth is almost equally split, 15 per cent from like for like same store increase and the other 15 per cent from new stores build last year and this year. The sales growth is divided evenly over the various product groups but aircon repairs and servicing and oil/filter changes lead the growth.
The aftermarket for passenger car tyres in Thailand seems to have picked up slightly compared to 2008 and 2009 (+5 per cent in units). B-Quik posted a 20 per cent increase in tyre unit sales in the first half of 2010 to 210,000 units and therefore expects to break into the 500,000 annual unit sales bracket this year.
In September B-Quik will open three stores, one in Krabi and two in Bangkok, October will see another two stores opening in Bangkok and in November a further two new stores outside of Bangkok in Korat and Trang. There are more stores in the pipeline for which construction will commence this year but these might not open this calendar year, says B-Quik.
Thailand is on track for record new car sales this year, which are expected to top 700,000 new vehicles with major shifts in the vehicle mix to smaller passenger cars instead of the traditional high-volume selling pick up trucks. The high car sales might be a short term impediment on growth of maintenance services but in Thailand the total car parc is growing very rapidly, offsetting these effects.
“With 2.5 million vehicles in the greater Bangkok area and another 4.5 million in the rest of Thailand, the automotive repair market is big and B-Quik is planning to grow the rest of Thailand to the same 20 per cent market share that it currently enjoys in the greater Bangkok area.” says Ms. Busararat, the COO of B-Quik. “We will operate 15 stores outside of Bangkok at the end of the year and that number will double over the coming two years. This, combined with ongoing expansion in the greater Bangkok area, will result in 100 stores by the end of 2012.”
“The last few years have been very interesting and exciting” said Henk J. Kiks, CEO of B-Quik. “The company is established as a market leader and a quality leader in Thailand. B-Quik is the fastest growing and most profitable car repair business in Thailand. This is due to a lot of things but the main reason for our 10 year record run is the dedication, quality and loyalty of the B-Quik people. They ensure our customers get the service they need and most importantly they ensure that those customers keep coming back. From a marketing perspective B-Quik is unique in Thailand for the fact that it is the only retailer not dominated by a tyre-manufacturer and is the only retailer that owns and runs all the stores by itself.”
The Thai consumer is one of the most demanding in the world, they demand perfect, punctual and high quality services and products. On top of that, they love their cars with a passion. B-Quik says it aims to provide best value for money products and B-Quik is the only one who provides a full range of tyre brands, providing the motorist with the widest choice.