FTEC to spend RM40m on new concept stores

KUALA LUMPUR: Local IT company FTEC Resources Bhd will spend about RM40mil on two more concept stores this year.
According to managing director Tang Boon Koon, the company had already identified the locations for the two stores but not the commercial area.
“Plans have been laid out to establish TecAsia stores in the northern and central regions,” he told StarBiz.
On Feb 1, the company marked its entry into the IT retail market in Peninsular Malaysia with the opening of its flagship IT concept store, TecAsia, at Low Yat Plaza in Kuala Lumpur. The 27,000-sq-ft store is set to introduce consumers to the integrated “4C” concept of computers, communications, consumer electronics and content.
Tang said the company had allocated some RM20mil for the store, which included the set-up, renovation and inventory.
“One of the key features of the store is that customers can walk into TecAsia and be exposed to all the big brands. Customers do not have to walk into different stores to make price comparisons,” he said.
Tang said the store would carry a full range of products from vendors such as Hewlett-Packard, Sony and Apple besides the FTEC brand.
“In this sense, we are trying to offer a complete ICT digital lifestyle to the consumers,” he added.
Tang said the store would also carry Dell products. He said this demonstrated Dell's confidence in the company, adding that in the past, Dell only sold its products online.
Tang said TecAsia's emphasis would be to enhance the experience value for its consumers.
“The store will encompass a lifestyle corner, kids corner, virtual digital office and game zone, where customers can touch and feel, and experience the products, before they make up their minds on a purchase,” he said.
It will also have a training centre to provide educational programmes for customers.
“There will be weekly workshops on different products and devices at the store, so that the public can learn about the products,'' he said.
As one of the largest IT concept stores in Malaysia, Tang said, TecAsia was targeting to achieve monthly sales of RM10mil.
He said he was confident of achieving the target given the availability of a complete range of principal products at its stores and the projected growth of ICT spending in the country.
“The first TecAsia store, which opened in Kota Kinabalu in March 2006, turned profitable just nine months into operations,'' Tang said.
According to Tang, ICT spending was expected to increase by 10% to RM44.8bil in 2008 from RM40bil last year.
“ICT spending is still increasing and the demand is still there,” he said, adding that the trend justified the company's investment in TecAsia.
“We are optimistic of society’s growing appetite for ICT products, given the increasing capabilities and functions of IT gadgets,” he said. -www.theedgedaily.com