Sansiri today announces a major 2018 business plan on the “Tomorrow is Unfolded” roadmap, outlining seven key strategies: growing presence in foreign customer segment; strengthening partnerships with Thai and foreign partners; expanding townhouse segment, introducing new condominium concept with unique experience to attract young generation; continuing on digital transformation to extend the success in every dimension; creating organization of the future through “Agile way of working” concept to accelerate the rapid growth; and driving sustainability in all business aspect. Under this roadmap, the company has set laid out an aggressive plan to introduce new projects, totaling 31 projects worth 63,200 million baht, and to achieve its new high target sales of 45,000 million baht this year. The company also announced overwhelming success in 2017 with a project presale growth of 24% from 2016 amounting to 38,600 million baht
Sansiri Public Company Limited, said, “Last year, we launched a holistic corporate transformation project under the ‘Journey for Tomorrow’ concept. Today, our first journey to success has yielded good results in terms of sales and revenues, as well as our serious expansion in the overseas market, and prepared us for a constant strong growth in 2018.”
Key achievements last year included the launch of 14 projects with a combined value of 37,200 million baht and presale volumes of 38,600 million baht – a 24% increase over 2016, reflecting high market responses in all segments. We are also very successful in expanding customer base provincial areas and international markets. More importantly, the fact that Sansiri launched new projects from time to time throughout the year enabled the company to record a constant revenue stream throughout the year and secured strong financial position.
The six key drivers for such strong performance are, as follows:
1) Significant achievements in the overseas markets while maintaining the leadership position as Thailand’s No. 1 property developer in the foreign customer segment. In 2017 the company saw the sales in its overseas markets increasing to 9,300 million baht against the 7,500 million baht target – a 72% increase over 2016.
2) Strong partnerships with the BTS and Tokyu Group, under which four projects totaling 14,100 million baht were introduced. These projects were very much welcomed by Thai and foreign customers living in Thailand, as seen from the success of The Line Sathorn project of which all units were sold out in a few days after launch on online booking platform.
3) Success in the provincial market expansion where all the 13 property projects nationwide worth 18,330 million baht were fully sold out, representing a growth of 36% or 8,000 million baht from 2016.
4) The sales success of all property brands, including single house brands like Setthasiri, Burasiri, and Kanasiri, and all condominium projects, especially the flagship 98 Wireless, THE LINE, THE BASE, HAUS, and d’condo.
5) The success of global partnerships under which Sansiri invested US$80 million (2,650 million baht) in six of the world’s leading technology and lifestyle companies: The Standard, One Night, JustCo, Hostmaker, Monocole and Farmshelf.
6) The launch of Digital Transformation in two areas:
· The establishment of Siri Ventures, a joint venture between Sansiri and the Siam Commercial Bank to drive property technology development.
· The launch of Siri Life Tech to provide its customers with a superior living experience. Such technologies include Sansiri Home Service Application, Sansiri AI Box, SAN:DEE delivery robot, Smart Move, Farmshelf, and [email protected]
“In 2018 we foresaw three significant trends – domestic and global economic recovery; the sharing economy is changing consumer behavior and introducing a new way of living; and technology disruption that represents new opportunities for many businesses. We believe that the adaptive ability along with this technology disruption will be winning weapon in becoming the trendsetter of each industry. All these factors contribute to a positive outlook of the property market expansion and spur consumers’ purchasing power. This year, we will, therefore, focus on offering a wide range of property projects with various impressive services that best address different needs of all customer groups and expanding the customer base in Bangkok, provinces and foreign countries. Another important direction for this year is to continue and strengthen partnership with existing and new local and international companies.”
In 2018, Sansiri’s key business directions guided by “Tomorrow is Unfolded” strategy are:
1) Expanding its business in the overseas market and maintaining its No. 1 position among Thai property companies by investing in the overseas market with a plan to invest 13,000 million baht (an increase of 40% from last year) to take advantage of the economic expansion in the global and Asian markets. Sansiri recently opened its sixth overseas office in Hong Kong and is looking for an opportunity to expand into other markets, such as South Korea and Taiwan, and strengthening its market positioning in Japan.
2) Growing partnerships with local and international companies. For the residential market, the company has a secured plan to launch 4-6 projects worth 12,00-19,000 million baht in partnership with BTS and Tokyu Group; the launch of the world’s first Standard Residence and Monocle Residence. For new business, Sansiri will launch JustCo co-working space in four locations, with the first two at AIA Sathorn in May 2018 and another at All Seasons Place in August 2018 and offer Sansiri’s customers with the privilege of using their services. Hostmaker will also start its property management services for Sansiri customers which will strengthen Sansiri’s competitive advantage in overseas markets.
3) Aggressively expanding townhouse segment in response to the rising demand among the young generation and rapid segment expansion. This year, Sansiri has 11 townhouse projects worth 9,600 million baht in the pipeline.
4) Differentiating with a unique design for enhanced living. New condominium segment will be opened with four projects with a unique design for the young generation. Internally, Sansiri has created out internal Lab Room and Lab House unit, called under the code name ‘Haus 2025’, to conduct the test for our future rooms and future projects, as well as to experiment our technologies and innovations.
5) Continuing with Digital Transformation Chapter 2 with three areas of focus as follows:
· Developing and seeking new technology and innovation with the potential to be further developed to enhance Sansiri’s customers’ experience
· Introducing 1,500-million-baht 3-year investment plan in high potential startups through Siri Ventures. The investment will be focused in three areas: investment in startups, cooperation with a global network, such as SOSA and Plug and Play, in building eco-system for startups; and further developing innovations to enrich Home Service Application.
· Restructuring to increase operational efficiency and flexibility to strengthen competitiveness in the digital era.
The three areas of focus are expected to generate following results:
· Products: innovative service for the living experience enhancement and products will be enabled by advanced technology like AI, IoT, Wearable, and Robot
· Service enriched by innovative Home Service Application 2.0 with Thai Voice Command to be launched in the 1st quarter this year
· Internal operational efficiency enhanced through the “Salesforce” system for improved marketing and customer service efficiency. Primavera system will also be implemented for the first time in managing and controlling construction related works.
6) Building an organization of the future within the framework of three concepts: 1) Data Analytics; 2) A new work culture that will attract the younger generation to work with Sansiri. Called “Every Day is Friday”, the new culture creates a dynamic work environment that makes its employees more energetic and happy in their daily routine. The “Agile Way of Working” also empowers Sansiri’s employees with more freedom to work, reduces complicated process, opens for new ideas that will meet customers’ need and directly addresses young generation’s need; and 3) Life-long Employability. In addition, Sansiri plans to introduce the “New Generation of Young Designer” project which recruits young generation into the company. By combining their creative ideas with Sansiri’s expertise and experience, the company will be able to unlock any limitation and create property projects, as well as provide the services that meet young generation demand. At the same time, the company is strongly committed to improving its employees’ capability and giving them the opportunity to grow with the company.
7) Driving the organization vision towards sustainability through 3 internal key areas:
· Environment: becoming a paperless organization, low carbon footprint
· Social contribution: cooperating with UNICEF in creating activities to promote a better quality of life for young children living in construction sites, which has continued for seven years; and the implementation of Universal Design concept in all projects
· Good Governance: operating with transparency and fairness
“For Sansiri, 2018 will be another challenging year with our new high presale target of 45,000 million baht and 31 new project launch worth 63,200 million baht. Of all these new projects, we will launch 12 condominium projects worth 33,500 baht projects (53% of the total annual project value); eight single house projects worth 20,100 million baht (32% of the total annual project value); and 11 townhouse projects worth 9,600 million baht (15% of the total annual project value). When considering the economic recovery, other positive factors and our solid business direction, we are confident in achieving the presale target as planned. We are also confident of creating a new phenomenon in the Thai property market and putting Sansiri on the world’s property market map more prominently as a most-watched property developer in the international arena,”