Pattaya Daily News

05 February 2013 :: 11:02:01 am 71438

Convenience Stores Boost Retail Industry Growth

The Retailers Association of Thailand announced that the retail industry is expected to grow by 10 to 12 percent in 2013. This growth is largely powered by an increase in market competition of the convenience store business, expected to grow by 18 percent this year.
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A new company is also entering Thailand’s mini mart industry. Lawson is a Sahapat joint venture with a Japanese company, and will be doing business as Saha Lawson Company Ltd. The company plans to open with 4 to 5 branches in Bangkok, and has a long-range plan to gradually increase to 1,000 convenience stores.

Other trends include 10 issues worth noting in the retail industry:

1. The convenience store category will see the most growth with an18 percent increase. The main reason is because of more competition in product standards, service, concept and price standpoints, giving the consumers more choices.

2. The increasing trend of “Go Green” organic products and health care products growing in greater proportion in every supermarket.

3. High quality products and premium price products will get more attention from customers as their incomes increase.

4. Hypermarkets will focus on activities to stimulate sales through royalty programs, statistics, Customer Relationship Management (CRM), and using modern communication tools to reach customers.

5. Beauty and health products stores will continue to grow. As a result, retail stores in turn will come together to form alliances that might take the form of franchises.

6. Fresh produce markets will see a reduction in growth as a result of the changing lifestyles of consumers, according to Dr. Chatchai Tuangrattanapan, director of the Retailers Association of Thailand.

“In urban areas where there is less and less space, and the urban costumers hardly cook, the number of family members are less. So they don’t have to cook, and in the morning, they do not have time to go to the market, because the fresh market is crowded and they would have to go early,” Dr. Chatchai said. “So it is not the negligence of the fresh market entrepreneur, but it really is a matter of lifestyle, because if you try to observe, in Tesco in the morning there are not many people shopping.”

7. Construction equipment stores are rapidly growing, matching the growth of the real estate market.

8. Small and Medium Enterprises (SME) are turning to specialized marketing (niche markets).

9. Online Marketing will better respond to the customers who want quickness and speed in their purchases.

10. Technologies will push retail shop entrepreneurs to develop their communication to include multichannel and using many kinds of media to reach customers, but are not tied to each other.

Retailers would also employ omni channel communications, using technology to help the entrepreneur retain consumer information that is gathered from sales data, and guiding the consumers to shopping online, or at stores where retailers can analyze and offer promotions to consumers one-on-one in real time instead of online.

There are estimated 12,246 convenience stores in Thailand, based on data collected up to December 2012. The total includes stores in the following categories:

7-Eleven (6,450 stores); Tesco Express (1,060 stores); Family Mart (620 stores); TOPS Daily (130 stores); Mini Big C (111 stores); Jiffy (147 stores); CP Fresh Mart (720 stores); Tan Jai (28 stores); Tang Hua Seng (11 stores); Fuji (5 stores); misc. (2,234 stores).

For the year 2013, the following is the projected growth of Thailand’s retail industry by area: Bangkok and its vicinity (3 percent); the central region (7 percent); the East (8 percent); the Northeast (9 percent); and the South (10 percent).

Photo : Internet   Category : Society

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