For over 20 years, Ricoh copiers had been distributed in Thailand by Fantaract Ltd, a tightly held, Chinese family-owned firm. Through the early 1 980s, under Fantaract distribution, Ricoh was the market leader. However, as both Fantaract's business and the copier business expanded, and the Thai market became more competitive, certain Fantaract management practices were no longer sustainable. Most notable was the inability of the family patriarch to trust outside family members, to accept distribution of power, or to share information about the company with non.f associates.
Unknown to Ricoh, in addition to picking up the distribution of Canon cameras, in itself business which had grown to sizeable volume, the company was also distributing Minofta copie through a wholly owned subsidiary company. There are indications it may have been involved a number of other questionable business distributorship arrangements. Under these sorts conditions, good management and good staff did not stay. Subsequently, although Fantara handled import logistics, it was never able to add real value to the distribution arrangemer Ricoh was the market leader only because of recuning advantages from early entry in tj marketplace and the technical leadership of Ricoh copiers over competitors. As both of the advantages eroded, so did market share. The Fantaract family began to lose control over its st and business procedures. By 1984, accounts receivable had grown out of control; often, tj company could neither find the buyer nor collect the invoices. Apparently, 'hiding buyers' was service being offered by some sales staff. Technical service staff had begun selling parts ar related consumables to Fantaract customers from non-Fantaract distributors for personal prof Many were selling imitation parts but charging the higher cost demanded for Ricoh parts ar consumables produced in Japan. By 985, Fantaract was facing bankruptcy. The number copiers sold had declined from 608 in 1982 to 273 in 1985.
Gilman Office Machines (Hong Kong), a fully owned subsidiary of the lnchcape group, had be successfully selling Ricoh copiers in Hong Kong for almost 20 years. Ricoh contacts alluded to t declining sales in Thailand and to the deteriorating financial position. Company representativ from lnchcape, aware of Fantaract's declining sales in Thailand and their deteriorating financi position, approached the firm and offered to buy the distribution rights for Ricoh copiers Thailand. Fantaract refused. In the first 10 months of 1986, Fantaract failed to sell a sing machine, and in October 1986, Fantaract filed for bankruptcy. In November 986, Gilm; acquired the distribution contract free of charge. Peter Bond, an expatriate manager from Hor Kong, was moved to Thailand to build up the business.
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