Paithoon Sathainpapayut, group product manager of Moong Pattana, said yesterday the company was studying consumer behaviour and the market potential of the two industries and expected to know in one year which industry to enter first - and how much to invest.

The steady decline in the birth rate, which has occurred globally and in Thailand since 2002 when the government encouraged more attention to birth control, is a major concern for the company. A decline directly affects sales for all its 10 major products.

Thailand's birth rate has declined from 2 per cent of the population to 1.2 per cent to 0.8 per cent last year. There were 660,000 babies born last year.

The company has been in Thailand for 33 years and has 600-700 products. Strong products in the Thai market include feeding bottles, nipples, wipes, and cleansers for babies as well as breast pads for mothers.

Parents aged 24-32 years old are the company's main target group. This group is always willing to pay higher prices to get high-quality products that are safe for their children, said Paithoon.

He said the company's strong brand awareness and market share in those categories would help it build awareness in the garment and food markets over a short time. The company emphasises good quality and multi-function products.

The parent company has manufactured and sold middle- to high-end product lines in those industries for decades in Japan, which are ready for the company to import.

While waiting for the feasibility study to be completed, Moong Pattana this year plans to emphasise strengthening its brand awareness by focusing on entering speciality shops and developing the provincial market.

The company has allocated a marketing budget of Bt25 million and will devote 30 per cent of the budget to the provincial market.

Niramai Laksananunt, vice president for marketing and sales of Moong Pattana, said Pigeon already had strong brand awareness in the market but there was still room for more.

It will focus mainly on big provinces that have a substantial population such as Nakhon Ratchasima, Khon Kaen, and Udon Thani. Only below-the-line activities including activities at its point-of-sale locations will be conducted in the market as people in those areas have access to its advertising through television and radio.

The company also plans to open a flagship store in downtown Bangkok either late this year or early next with an investment of Bt4 million-Bt5 million to showcase its products.

Last year, the market for baby products and accessories grew 10 per cent to Bt570 million, of which 45 per cent was the premium market worth Bt225 million, 26 per cent was the middle market worth Bt148 million, and 25 per cent was the low-end market worth Bt167 million.

The premium segment grew from a year before due to the entry of many new players, while the low-end market dropped as players focused on price wars.

The company claims to be a market leader with a 38-per-cent market share and a 54-per-cent share when its middle- to high-end markets are included.

This year, the company expects to see 10-15 per cent sales growth from Bt215 million last year, which will be the same rate as last year. However, Paithoon does not think the overall market will perform as well as last year, growing at only 10 per cent.The uncertain political situation does not worry the company or its parent.

Nitida Asawanipont

The Nation