Throughout the year, several factors have curbed spenders' appetites. Increased interest rates and oil prices were significant, but also the political uncertainty, with a military coup, an interim government and an unelected National Legislative Assembly, commented many industry watchers.

Oil prices are fluctuating again after a period of steady decline. The three southernmost provinces - Yala, Pattani and Narathiwat - still continue to resound to bomb blasts.

The disasters have diminished somewhat but nothing can guarantee Thailand's safety as storms still whirl around neighbouring countries. Political tension could rise again as some groups have recently staged demonstrations against the interim government and the Council for National Security.

All these factors have caused a decline in spending and delayed purchasing decisions throughout the year, and the retail industry was in a state of shock for a while during the coup d'etat in September, especially in central business areas.

Many retailers had to lift their performance by arranging more campaigns with attractive prizes. For example, The Mall Group usually arranges midnight sales twice a year, but this year it added one more, in December.

Some retailers recorded a decrease in consumers' spending per shopping trip. Average spending at Robinson, which is operated by the Central Group, decreased from Bt1,100 to Bt1,000. Meanwhile, spending at Siam Discovery and Siam Centre, which are operated by Siam Piwat, also decreased by 10-15 per cent during mid-year.

These unfavourable factors have not disappeared but people seem to have become used to them. Consumer spending now tends to be back on track.

"Uncertainties still exist but the economic risk next year should be lower than this year because we already have an actual government, a fiscal budget, as well as the National Legislative Assembly," said Kobchai Chirathiwat, president and CEO of Central Pattana, part of the Central Group.

 Nevertheless, the industry can be sure of one positive factor - His Majesty the King's 80th birthday. People might again perceive an atmosphere of celebration through the whole year because many public and private organisations will arrange activities.

Natsamon Vongkittipat, chief marketing officer of The Mall Group, even foresees that the events will lead to significant temporary job creation, which will indirectly cause more spending - and the retail industry would eventually benefit from that.

The public sector's attempts to boost the economy will also help greatly. For example, the Tourism Authority of Thailand has promoted "Thailand Unforgettable" in international markets to attract foreign tourists. Foreign visitors also generate significant sales for the company, representing as many as 40 per cent of all its customers.

Retailers' strategies next year to boost sales mainly focus on marketing campaigns and activities with very creative ideas, attractive shopping prizes, and tenants that best reflect the image of certain shopping malls. Every element must fit specific target groups. After all, consumer loyalty is the main concern.

"Competition will be intense. Retailers already have the hardware - shopping complexes and department stores. Therefore, they will compete on software - shops, loyalty campaigns and marketing activities," said Mayuree Chaipromprasit, assistant to Siam Piwat's managing director of business promotion.

Siam Piwat focuses on customer relationship management and tailor-made marketing programmes for specific target groups. The company recently set clear-cut target groups for Siam Centre and Siam Discovery Centre.

Siam Centre, which focuses on teenagers, will have activities such as contests for teens to have the opportunity to become models, actors or actresses, as it knows they want to be involved in the entertainment industry. There will also be events to "meet-and-greet" favourite stars. Special privileges will be given to members of its club.

Meanwhile, Siam Discovery Centre, which focuses on working people aged 25 and up, will have activities such as art exhibitions or unique product shopping campaigns. Also, the company aims to attract adult shoppers with the launch of the Citibank Discovery Visa card.

The Central Group also plans extensive marketing campaigns. At the same time, it will create clearer images for its three Central formats - Central Festival, Central Plaza and CentralWorld - which is a similar strategy to Siam Piwat in setting separate marketing campaigns for specific customer groups and having tenants that fit the targets.

A similar approach is also followed by The Mall Group, which separates strategies for its three shopping malls. Attractive promotions and activities targeting specific groups are the main concerns of The Mall. The Emporium remains as what The Mall Group calls "the ultimate shopping complex" but will concentrate more on expatriates, particularly Japanese. At the same time, it will build a stronger foundation for Siam Paragon to achieve its expectation of being a world-class shopping mall.

Robinson's strategy, meanwhile, will focus on three areas - new house-brand fashion products at affordable prices, attractive store décor, and enhanced services.

Overall, retailers are working hard in the hope that there will be no disruptive incidents similar to this year and expect that the interim government will brighten the business atmosphere.

If everything remains on track, the retail industry next year can have high hopes for a bright future because shopping is in Thai blood. As Central Pattana's executive vice president for marketing, Nattakit Tangpoonsintana, said, "Thai people are shopping lovers."

Nitida Asawanipont

The Nation