Soft loan, providing money with enough stocks to overcome the crisis of importing business
For import business Agility and decision-making to keep up with the global change are key. Just by saying that the crisis is coming, we must hurry to adjust our business plan in time. But having a good plan or just being alert is not enough. Cash flow must also enough because it is another key to keeping the business going without interruption and following the plan. Khun Norawich Phatharathanakrit, Managing Director Maverick Group Co., Ltd. Companies importing/selling motorcycle accessories, spare parts, many of the world's top brands such as Brembo, BMC, Domino, Matrist. Tell us about his experience in adjusting his business strategy to deal with Covid-19. And the importance of cash flow in helping to overcome this great crisis.
Maverick Group is in the business of importing and selling motorcycle parts, from small motorbike to big size such as a big bike. By choosing to import the top famous brands in the world with high quality and safety standards. 98% of products imported from Italy. The rest is imported from England. Principles of doing business that the product must be good and safe Because by the motorcycle itself Which has only two wheels is already dangerous. Therefore, all products must pass all European standards. And must be a premium level that has been certified and tested successfully. "Expensive or cheap is a secondary factor the first thing must be good. Because it is safety, "said Khun Norawich.
Maverick's main business focuses on wholesale for dealers. In which the dealer will be a motorcycle shop selling spare parts for car accessories and partners from big brands. As for the storefront, there are still some customers coming in. But the storefront is focused on providing information and educating customers more. Both the company itself and the dealer have e-commerce services, which are also sold online. But storefront sales are better than online. In which items sold online will be trivial at a low price, which makes customers dare to buy the sale at the store will be an important item at a high price which buyers will be more confident when seeing the actual product.
Changing business strategies after COVID
Since it is an import business especially mainly imported from Italy It is well known that Italy is the first country and the first to be affected by Covid-19. severely and have the policy to close the country, close the factory. No one knows when the country will be opened. The policy is always changing. Khun Narawit said that almost have to guess. But it is a guessed rule because each supplier that deal with has different lead times in production. When knowing that this will happen, it must be adjusted to the plan first. "When COVID came, we saw what the effect will be. What are the problems? We know that we are an import company. Of course, Italy must close the country. Therefore, what we can do is to stock as many items as possible. Therefore, need to stock more than 200-300% more. This is the main factor. " Khun Norawit talks about adaptation. Because without products, it can't be sold. But there is a problem that is the transportation cost that is rising because of the need to use freight vehicles from Italy to France first. And then fly from France to Thailand Which makes it more complicated and costly.
Increase distribution channels and increase services for survival
Before COVID the company will have many large and medium-sized dealers helping to distribute products. But when COVID happened dealers are not brave enough to stock up because they are afraid, they won't have customers or don't want to spend money. In order to keep the business going, the distribution channels must be distributed in small shops as well. By delivering the item to them without having to stock up on their own and then give the price difference. Plus, onsite onsite service for additional support. Which is to go to provide service at the customer's home or place that the customer wants right away Which is a service that just happened during the COVID period Which must be done to survive. "If we can't do it, we can't live. Our employees have more than 20 people, but not just more than 20 people, but more than 20 families. I don't want to lay off employees. So, we came up with what if a customer does not enter our store, what to do? Okay, then we'll go to the customer. " Khun Norawit talks about the origin of the new service that is becoming a New Normal. But serving a customer must have a way to do it safely. Not risking COVID, such as not being near customers. To bring the motorcycle to a park at the prepared location and the mechanic will disinfect everything and go into work.
A soft loan is an important factor in driving the strategy into reality
In order to increase inventory by 200-300%, cash flow is key to making this strategy a reality. But this problem is possible with soft loans from SCB and the Bank of Thailand. Khun Norawit said that he learned about Soft loans from RM which contacted to update news and new products consistently. Including the soft loan itself, which SCB is the assistant to handle all the documents. Which received a loan of 20% of the outstanding balance on December 31, 2019. With interest at 2% for two years and not having to pay interest in the first 6 months, which doesn't take about a week Make money to catch up with demand. "Loans help to stock up more items. Because if we are not in stock, must hope that the factory will open. If we don't have our products we can't for sure, so if we have items that sell even if they sell out 10% or 20%, they can still sell. " Khun Norawit said. He also shared his appreciation for SCB that he was very busy in his business. There is no time to update new, information, or financial services. Fortunately, SCB's RM is always up to date and providing advice. Including providing fast services. Which includes managing soft loans that can make his business strategy through the crisis happened.
What has been learned from Khun Norawit is must constantly monitor situations related to your business and plan to cope before the event becomes so intense that you cannot cope. Must adjust strategies and services to be in line with the situation. And the most impressive thing is the concern and take care not to abandon employees. Which the result of having the heart of a strong leader ready to cause him to find a new service that is New Normal. Another thing that is having a good business partner. Who was there to provide information, knowledge, and guiding the path to survival. Let SCB SME be a friend to walk beside for advice. Support your business to grow and overcome the crisis.
With confidence in the potential of Thai SMEs. For SMEs interested in applying for a Soft Loan, can contact the Relationship Manager that takes care of you or contact the Call Center at 02-7222222.