Vol. 4: No. 4, April 2009

Retailers continue investment despite strife

(Bangkok Post, 17.04.2009)

Retailers will continue their investment plans in Thailand this year despite falling consumer sentiment in light of the recent red-shirt protests.

Aggressive marketing campaigns will be launched to boost the confidence of local shoppers and to attract foreign tourists.

Busaba Chirathivat, senior vice-president for corporate communications at Central Retail Corporation (CRC), urged the government to increase the Tourism Authority of Thailand's (TAT) budget to revive the country's image.

"The government should provide clear and accurate information on the current political and economic situation. It should continue its investment programs allocated through both public agencies and state enterprises," she said.

Nattakit Tangpoonsinthana, executive vice-president for marketing with Central Pattana Plc (CPN), said the government should set up a central body to promote the Thailand brand. It should integrate agencies and resources, such as the Commerce Ministry, the TAT, and the Bangkok Metropolitan Administration (BMA). They should create a new slogan for the country, which reflects happiness and peace.

Central Group will spend 100 million baht on its first ever marketing campaign that promotes all of its business units, for the government's Amazing Thailand Grand Sale between June and August.

Mr Nattakit said CPN was slightly hit when violence on Bangkok's streets caused the one-day closure of five of its shopping malls on April 14.

After adjusting its marketing campaigns and activities to serve local shoppers, CPN is confident it can increase its sales by 25% this year from 9.3 billion baht last year.

Prapaphan Ploysaengngam, marketing director of CenCar Co, the Carrefour operator, said the French parent company had encouraged the Thai operation to continue its investment plan because of the country's strong fundamentals.

"In the first two weeks of this month, we opened three new hypermarkets and plan to open an additional seven stores in the rest of this year, costing four billion baht in total," she said.

As a result, its network will rise to 41 stores from 34.

Sales during the Songkran period remained positive with 5% growth year-on-year because about 60% of the total products are food and daily necessities. Also, one-third of its branches are located in the provinces.

The company is starting a 'Back to School' campaign today that runs to May 31. It aims to increase sales by 20%, aided by the government's 3-4 billion baht stimulus to subsidise purchases of school uniforms, books and supplies.