Berli Jucker, the SET-listed consumer goods maker and owner of Big C Supercenter, looks set to convert 30,000 mom-and-pop shops across the country to the Donjai model over five years as part of BJC's new retail partnership scheme.
The Donjai model provides traditional trade store owners with the opportunity to modernise their stores through cooperation with BJC, while still maintaining full ownership of their stores.
Small store owners that join the Donjai model have to buy the majority of their inventory from Big C.
Roughly 1,000 traditional trade stores have joined the Donjai model.
Of the total, 400 stores are in the Northeast, 189 stores in the South, 128 stores in Greater Bangkok and the remainder in other regions.
According to Thapanee Techajareonvikul, the company's senior executive vice-president, BJC has invested more than 1 billion baht to develop facilities, IT, human resources and operations to support the Donjai retail partnership model.
BJC established Meechok 168 Co in July last year to handle the new retail partnership model and introduced the Donjai scheme in September last year.
The Donjai concept originated from BJC owner, billionaire Charoen Sirivadhanabhakdi, who said he wants to help develop local entrepreneurs to generate long-term growth, allowing local grocery stores to have a modern management system with a database to drive sustainable sales.
"Big C Supercenter deals with 60,000 grocery stores across Thailand and expects half of this total will follow the Donjai model," Mrs Thapanee said.
She said the company aims for 8,000 stores under the Donjai model next year and 15,000 stores in 2024, 20,000 stores in 2025, 25,000 stores in 2026 and 30,000 stores in 2027.
BJC expects sales from 30,000 Donjai grocery stores in 2027 to reach 42 billion baht, up from 1 billion from 1,000 Donjai stores this year.
Donjai stores have three formats: small, medium and large.
Each requires an investment of 200,000-300,000 baht, with BJC subsidising 45-55% of the investment budget and the remainder paid by grocery store operators that convert to Donjai.
Grocery store operators under the Donjai model purchase 50% of products from BJC Group to be sold at their stores.
BJC hopes the percentage of BJC products sold at Donjai stores will reach 90% in the future.
