The rising popularity of Thai sportsmen and women and the imminent Euro 2016 are set to increase sporting goods demand despite the weak economy, says an executive from leading retailer The Mall.
Sunthorn Sureeluangkhajohn, general manager of merchandising for SportsMall of The Mall Group, said the market for sporting goods is expected to expand by 10% to 25.3 billion baht this year as people focus more on sports and health by going to gyms and fitness classes.
The sporting goods business, particularly for fitness and running, have grown the past three to four years and the trend should continue this year with Uefa Euro 2016 and the Summer Olympics scheduled, he said.
Kasikorn Research Center (K-Research) estimates the Euro 2016 football tournament, which kicks off today in France, will add 8.8 billion baht to Thai businesses, especially for drinks, fast food, and restaurants that screen live matches.
K-Research expects the month-long tournament that features 51 matches between 24 European nations would add 500 million baht in advertising expenditure to various media.
Mr Sunthorn said SportsMall posted a strong performance in the first five months this year, up 30% year-on-year. He believes the two big sporting events will boost demand for apparel and shoes.
To cash in on robust demand, the company changed 3,000 square metres of space at EmQuartier to a SportsMall.
"We want to promote the Em District SportsMall as the sporting goods hub of Cambodia, Laos, Myanmar and Vietnam," he said.
Customers from these countries account for 10% of total sales, a proportion it expects to rise, said Mr Sunthorn.
Golfers from neighbouring countries regularly come to Bangkok to buy equipment and accessories, and SportsMall is one of their destinations, he said.
In order to attract the regional market, The Mall is organising international sporting events such as "SportMall Beat Bangkok 2016", an extreme sports competition from June 10-26 at Em District.
Some 100 Vietnamese have indicated their interest in participating, and the company expects more than 10,000 participants, said Mr Sunthorn.
The Mall set a budget of 200 million baht for the SportsMall at EmQuartier, with renovation of an existing store in Nakhon Ratchasima also planned. A new SportsMall at BluPort in Hua Hin is planned for October.
Mr Sunthorn expects the positive trend to help SportsMall earn 5 billion baht in sales this year, an increase of 50% from the same period a year earlier.