Retailers and manufacturers are spending heavily on marketing for the peak November-December sales season, with budgets estimated at more than 2 billion baht.
Purchasing power has improved since the third quarter, so retailers are spending heavily on marketing for the peak November-December sales season. THANARAK KHUNTON
All want to boost sales enough to offset a sharp drop in the first nine months of this year.
The retail market was slow during the first half due to the political unrest.
But with stability restored, purchasing power has improved since the third quarter, so retailers have adjusted their marketing strategies accordingly.
For these final two months, a variety of campaigns are planned.
Central Department Store, Zen Department Store, Central Embassy and CentralWorld will together allocate 1 billion baht for the festive season, while arch rival The Mall Group plans to spend 700 million.
An additional 700 million baht combined will be allocated by Robinson Department Store, Watson,Tesco Lotus, Big C Supercenter, Seacon Square, Future Park Rangsit and convenience store chains.
Apart from marketing events, the money is being used on store decorations nationwide to enhance feelings of fun and joy.
Special light shows with new Christmas trees and window displays are being prepared by retailers as well as colourful decorations.
Major retailers insist consumer spending has already recovered, but they want to approach their customers with more attractive and value-for-money campaigns than ever before.
Four Central Group retail businesses — Zen Department Store, Central Department Store, Central Embassy and CentralWorld — will join to offer customers a chance to see the "Tony Bennett & Lady Gaga Live" concert in the US along with privileges ranging from free gifts and discount coupons to special air ticket prices from Emirates.
The Mall Group and ICC International Plc will jointly offer customers round-trip airfare prizes to fashion capitals such as Paris, London and Tokyo between now and next February.
Retailers and manufacturers have set conservative full-year sales targets, showing average growth of 2-5%.
Chamnarn Maytaprechakul, an executive vice-president of The Mall Group,
said the company expected to generate sales of 50 billion baht by year-end,
2-3% higher than last year.
More than 15 campaigns, up from last year's 11, will be aimed at boosting sales and customer spending in these final two months.
"In 2015, if the situation is similar to when the economy was down in the first half of this year, then retail competition will be fiercer," Mr Chamnarn said.
"Then we'll pour another 2 billion baht into our marketing budget to boost sales next year."
Zen Department Store president Natira Boonsri confirmed purchasing power at her store had been back to normal since September and expressed confidence in seeing double-digit growth for October-November.
To spur sales at Zen, marketing campaigns will offer customers 10-90% discounts and a chance to win tickets to see the US pop band Maroon 5 in concert abroad.
The increasing sales momentum is expected to continue next year, when Zen expects sales growth of 25%.
More brands will be added next year, and the department store plans a big renovation in 2016. It is considering a new branch as well.