Technology disruption and uncontrollable factors, both local and international, have prompted SET-listed companies under Saha Group, the consumer goods conglomerate, to rev up efforts to adjust and adopt new strategies to sustain growth in the long run.
Saha Group owns 16 listed companies with combined sales of over 100 billion baht last year and market capitalisation worth up to 170 billion baht.
Overall, Saha Group's total sales amounted to 300 billion baht last year, with the figure expected to grow 3% this year.
Vathit Chokwatana, president of Saha Pathanapibul, Saha's marketing arm for household and food products, said that as customers shop more online and the life cycle of consumer products shortens, the company has to adjust to develop and launch new products that keep pace with millennials' demands and apply new marketing tools to catch up with them.
With this approach, sales of Mama instant noodles in the first half of the year are expected to grow by 11.6%, exceeding the earlier projection of 5% growth.
Mama's market share increased to 51% from 47-48% in the same period last year, the group said.
"This is a new height we've achieved for Mama," Mr Vathit said. "The growth of Mama is against industry growth of about 6% in the first six months of this year."
The company expects Mama sales to reach 10.35 billion baht this year, up 10.5% on last year.
Apart from new products, the company will also adopt more digital marketing tools.
"Consumer products by nature generate low profits and are not worth expanding online," Mr Vathit said. "But the trend is inevitable. We are developing our own platform to connect all supply chains covering modern trade, traditional trade and online channels. This way we can respond to our customers' need faster."
Surat Wongrattanapassorn, vice-president for the information technology division at ICC International, the group's marketing arm for fashion, said the company aims to triple online sales over the next three years.
Online sales at ICC will contribute about 10% of the company's total sales during the period, up from 3%.
The company aims to grow business in a sustainable manner by adopting three strategies: refresh existing brands to keep existing customers, recruit new customers via new products and new brands under the ICC portfolio, and expand e-commerce.
"We are developing our digital platform to link 100 brands together with logistics companies to become our group's network and take care of individual customers," Mr Surat said, adding that the company will cut underperforming brands and shut down loss-making shops.
On the other hand, OCC, the marketer for Covermark and Boutique New City and the distributor for Guy Laroche and New City Bangkok, is considering bringing in products from outside Saha Group to sell. A collaboration with startups is also in the pipeline.
Viroj Theeravatvatee, managing director of Sahacogen, said the company has been in the energy business for a decade and will explore opportunities from new businesses for sustainable growth in the long term.
The company is also teaming up with state bodies and universities to develop innovative products. Most recently, the company began developing bamboo to be used as fibre for biodegradable packaging for cosmetics. This will be a source of income in the future, Mr Viroj said.
Boondee Amnuayskul, chief executive of lingerie maker Thai Wacoal, said his company will partner with Japanese firms to develop new raw materials for lingerie and recently set up a special team for the online channel, aimed at doubling online business this year.