RETAILING
Mall Group creates new strategy for the downturn
- By: PITSINEE JITPLEECHEEP
- Published: 7/01/2009 at 12:00 AM
- Newspaper section: Business
The Mall Group, the country's second-largest department store chain, will adopt new business strategies to cope with economic uncertainties this year.
A boy pats a lamb at an event staged yesterday to promote The Mall Kids Funtasia, a Children’s Day activity scheduled for Saturday and Sunday at MCC Hall. The Dairy Farming Promotion Organisation of Thailand is helping to sponsor the event. NATTHITI AMPRIWAN
Chamnarn Maytaprechakul, the group's senior chief marketing officer, said marketing strategy and events would be based on a ''Five F'' principle: Focus, Fact finding, Fusion, Fresh (innovative ideas), and Fast moving.
The strategy is expected to help The Mall Group's sales grow by 3-5% to 40 billion baht this year.
In 2008 its sales rose by 5% to 38 billion baht, in line with its objectives. But Mr Chamnarn said growth had been held back by the slowdown. This hit spending hardest in December, the peak season when sales are usually 40-50% higher.
''The closure of Suvarnabhumi Airport caused tourist arrivals to fall sharply and hurt the spending mood. Our sales in December dropped by 10% year-on-year. We hope sales in January will be flat, despite negative factors,'' he said.
Mr Chamnarn said the downturn had delayed purchases of products like fashionable clothes and cosmetics, which would have been New Year gifts for friends and relatives. Some shoppers travelled upcountry to enjoy a long holiday instead.
He expects 2009 to be another tough year for retailers because tourism would need from three to six months to recover.
''Local shoppers, meanwhile, have delayed their spending as they're not confident about the current economic and political uncertainties,'' he said.
To tackle the current slowdown, the group has reviewed its strengths and weaknesses as well as its merchandising.
''We found that the key weakness of our shopping malls is the lack of consumer-centric marketing campaigns and activity. From now on we will create campaigns that focus on specific segments of shoppers,'' he said.
The company will also develop a new marketing scheme for ''Generation Z'', consumers younger than 18.
''We want to build loyalty with customer groups that influence what families buy and require,'' he said.
This weekend, The Mall Group is spending five million baht to stage The Mall Kids Funtasia on Saturday and Sunday at all branches. The number of visitors participating in its Children's Day campaign this year is expected to rise by 15% from the 200,000 last year.
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