Thailand’s online marketing firm COL Pcl is setting up a strategic joint venture with Harng Central Department Store to run a digital marketplace and operate a marketing agency, according to COL’s statement.
Central Group Online Co Ltd, a newly-established JV, will have a registered capital of 300 million baht, divided into 300 million common shares with a par value of 1 baht each. COL will hold 48.99 per cent in the new company and Harng Central Department Store 50.99 per cent.
This joint venture aims at enhancing business opportunity and boost competitiveness of online businesses.
Tanunchai Klumdang, Company Secretary of COL, said, the process would be complete in the first quarter next year and the source of funding is through working capital.
By the end of the third quarter, COL has operated 147 stores, of which 90 stores are B2S and 57 stores are Office Mate.
It records total revenue of 2.751 billion baht in the third quarter, up 6.75 per cent from the same period last year. Around 36 per cent of its sales revenue is contributed by B2S stores, 29 per cent of Office Mate stores and 35 per cent from call centre and online shopping.
Net sales from its online shopping business in the third quarter has surged by 19.67 per cent from the previous quarter as a result of the sales volume in the categories such as Mon, Kids & Toys, Beauty & Health, and Home & Kitchen.
COL had net sales of 7.4 billion baht, up 9 per cent from the same period last year. The net profit totaled 297 million baht, down 11.94 per cent on year due to the cost from its business expansion and higher selling and administrative expenses.