BIG Camera, BIG Think, BIGger Market
A “Big” move for the “BIG” company to leave its small and dying market behind.
It can be said that the digital camera trend is not popular as it used to be a few years ago, and the hype in Thai market is not enough for Big Camera Corporation Public Company Limited (BIG)’s business anymore. Evidently, the target has been shifted to Vietnam instead by entering a joint venture and establishing BIG Digiworld Company Limited.
BIG Digiworld will operate in the retail camera shop sector, selling camera equipment and other relevant products, including camera repair services, re-purchase, sale of used cameras, camera rental services, printing services, camera workshops as well as warranty extension services. All in all, it is just like what BIG has done in Thailand.
As the consumer’s behaviour in Vietnam is very much the same as Thailand, the potential of selling its products and services will also increase as well. Taking a step into Vietnam’s market is considered a step for BIG to enter the global market. And where will be the next target for BIG?
This advancement can be seen as normal business expansion, but deep down the business venture into Vietnam reflects that the business in Thailand has reached the point of saturation. The indicator that supports this is BIG’s profit from its financial statement that shows ฿5,663 million in revenue with ฿846 million of profit or 14.95% net profit (NP) ratio in 2016, ฿6,043 million in revenue with ฿744 million of profit or 12.82% NP ratio in 2560, and ฿3,104 million in revenue with ฿324 million of profit or 10.44% in the first half of 2018.
The above number shows a constant decline of BIG’s profit, as well as its gross margin profit falling from 30% to 26.3%. Are these stats signals and indicators that BIG is facing a problem in making profit?
Another factor that pressures BIG is the high innovation of smartphones and hesitation of consumers when it comes to making a decision to buy a mid-range camera.
These are the reasons for BIG to decide and make the move to advance towards the international market.