Tag: Thailand

  • Thailand lauded for elephant conservation

    Thailand lauded for elephant conservation

    Thailand has been honoured for its Elephant conservation practices at Kuiburi National Park, with the World Wide Fund for Nature naming it one of two WWF project sites in Asia carrying out best practices for human-elephant conflict mitigation.

    Thais’ love for elephants has also been highlighted via an art project on display at several shopping centres in Bangkok and soon to be seen in Milan.

    Research data confirmed that in 2015 there has been zero elephants poached in Kuiburi, of Prachuap Khiri Khan province, and elephant deaths have declined dramatically in recent years. There have been only four deaths from 2006 until now, compared to 11 deaths from 1997 to 2005.

    Additionally, human-elephant conflict incidents have declined dramatically from 332 in 2005 to 274 in 2013 to 146 in 2014.

    The second project site highlighted by WWF for human-elephant conflict mitigation is Kaziranga National Park in Assam, India, which has had no elephant poaching from 2010 until the present.

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    The success at Kuiburi National Park has been achieved through the collaborative effort of the Department of National Parks, Wildlife and Plant Conservation, local communities, local partner organisations and WWF Thailand.

    Hundreds of joint patrols by national park staff and military and border patrol police, who are trained to use the SMART patrol system, are major reasons for this success. The WWF and park staff encouraged Karen villagers to stop forest encroachment and poaching in the core area of the park while encouraging sustainable land use planning. Habitat for elephants has been improved in key areas and local communities are now engaged as conservation partners.

    “Our goal is to reduce the likelihood of human-elephant conflict, end hunting of wild species and at the same time also work to eliminate the killing of elephants for ivory and the smuggling of baby elephants from the wild,” said Wayuphong Jitvijak, manager of the Kuiburi wildlife conservation project for WWF Thailand.

    Kuiburi National Park has an area of 969 square kilometres. The WWF, the Department of National Parks, local communities and partner organisations collaboratively work to restore natural resources and maintain a healthy ecosystem for elephants by creating salt licks and filling water holes during the dry season. This ensures that the elephants remain in the forest, thereby reducing the risk of human-elephant conflict incidents such as crop raids.

    Today, there are an estimated 20,000-25,000 Asian elephants in the world and Thailand has a population of 2,500-3,200 wild elephants. Their global numbers have shrunk by over 70 per cent in the last 30 years and they are now classified as endangered by the International Union for Conservation of Nature.

    This year is turning into a game-changing 12 months for elephants in Thailand because of the strong efforts to protect them by the government with the support of the private and public sector. This year over 1.3 million Thais showed their love for elephants by uniting against the illegal ivory trade through a social media campaign called “Chor Chang Can Save Elephants”.

    Thailand also passed the Elephant Ivory Act, the first ever piece of legislation to control the domestic ivory market while publicly destroying more than 2 tonnes of ivory to signal zero tolerance for poaching.

    “Considerable progress has been made by the government this year but there will be challenges ahead in implementing regulations, clamping down on illegal ivory traders and reducing demand,” said Janpai Ongsiriwittaya, Wildlife Trade Campaign manager for WWF Thailand.

    Additionally, Central Pattana Plc this month joined hands with Art Bridge Chiang Rai, a group of artists from northern Thailand led by the country’s leading visual artist Chalermchai Kositpipat, to create 999 papier mache elephants. The artworks were created by 999 individual artists to raise awareness of issues relating to elephant conservation in Thailand. The 999 elephants are on display at Central Bangkok, Central World, Central Chidlom and Central Embassy until next Sunday.

    “Now more than ever the public is aware of the fact that 30,000 elephants in Africa are slaughtered each year for ivory and they have called for the slaughter to end,” Janpai said. “Even Thailand’s largest retail developer and the art community have joined hands for elephants … using the power of art to communicate the importance of elephants and elephant conservation to the public.”

    The event will also showcases a 4.2-metre tall elephant painted by nine leading artists and set to be sent to Milan to link with the art community there and serve as a symbol of Thais love for elephants.

    “WWF’s goal is to reduce human-elephant conflict and wipe out the illegal ivory trade to ensure a future rich in biodiversity and a future with elephants for generations to come,” said Yowalak Thiarachow, WWF Thailand country director.

    “Every effort, however small, matters. Say no to ivory products and join us in this fight to save elephants with your support and donations. Together we will make Thailand a leader in elephant conservation.”

  • Sequoia-backed marketplace wants to bring Thai retailers online

    Sequoia-backed marketplace wants to bring Thai retailers online

    When I first visited Thailand not too long ago, one of the first things that hit me were the numerous open-air markets – like the huge Chatuchak market in Bangkok. Shops and market stalls of all shapes and sizes peddled a huge variety of goods, from clothes to trinkets to household items.

    Thailand’s retail sector is expected to hit US$179.2 billion in 2016. Despite growing smartphone and credit card usage in the country, however, a lot of retailers haven’t jumped on the ecommerce bandwagon yet, leaving a lot of opportunity on the table.

    The founding duo of Thailand-based Zilingo, Ankiti Bose and Dhruv Kapoor, saw that opportunity for themselves when they visited the country on vacation. Ankiti is an ex-McKinsey consultant from Mumbai, India, who later worked for global venture capital firm Sequoia. Together with IIT (Indian Institute of Technology) graduate Dhruv, they decided to create a way for these retailers to find new customers online.

    Ankiti, the startup’s CEO, was always fascinated by the startup side of the VC business, she tells Tech in Asia. After that Thailand trip, she was convinced it was time to cross over to being an entrepreneur.

    Zilingo is a mobile-first online marketplace that allows merchants to list their inventory, set their prices, and fulfill online orders. Users can browse through available stores and products, then order and pay with their credit card.

    Zilingo screenshots

    Zilingo’s services include shipping, packaging, payment options, an analytics dashboard for mobile, order tracking, refund and cancellation options, and consultation on pricing strategy. The app also provides chat, through which a customer can get directly in touch with a merchant.

    The startup doesn’t charge merchants for listing, or any other fees, providing most of its services for free. It only takes a cut out of successful sales, wanting to encourage adoption and to “only charge for things that actually add value to the [merchants’] business.”

    Zilingo has only recently gone live, and is available to buyers and merchants across Thailand. Within November 2015, buyers from Singapore, Indonesia, and Hong Kong will also have access to the platform’s Thai sellers. Other Southeast Asian countries will follow, according to the startup. There are currently over 300 sellers on the site, Ankiti says.

    The company has already raised external funding, to the tune of US$1.88 million. The funding comes from Sequoia India, Teru Sato of Beenext, and Freecharge’s Kunal Shah and Sandeep Tandon.

    “We are delighted to back Ankiti and Dhruv, a highly talented and committed founding team, in their efforts to build a mobile-first marketplace for Thailand,” says Shailendra Singh, managing director at Sequoia India. “We liked the team and their mobile-first product so much, that we agreed to invest at the concept stage. It’s early days for the company, but we’re excited about the prospects for Zilingo.”

    Are you eager to shop from Thai retailers online? Do you think Zilingo has found a good way to digitize Thailand’s merchants?

  • Five Manchester City online stores launched in Asia

    Five Manchester City online stores launched in Asia

    English Premier League club Manchester City has partnered with EZ Shopnet to launch five online stores serving Asian fans.

    Manchester City online stores will be launched for customers in China, Hong Kong, Japan, Korea andSoutheast Asia.

    As the club’s new online retail partner for Asia Pacific, Hong Kong-based EZ Shopnet will help to meet fast growing demand across Asia Pacific for official Club merchandise. Each of the five stores operates in local languages and currencies, with local customer support enabling the club to get official merchandise to its fans quickly and cost effectively.

    Manchester City is following the lead of rivals Manchester United and Chelsea in cashing in on the growing fan base for EPL across broader Asia. It recently opened a regional management office in Singapore.

    Omar Berrada, group commercial director for City Football Marketing, which brokers Manchester City’s commercial partnerships and manages all of its retail and licensing, said that through EZ Shopnet, the club can get even closer to its growing fan base across Asia Pacific and deliver them a better and quicker service.

    “We have seen an enormous growth in our followers in the region and we are extremely happy that they will have easier access to official City kits and our wide range of merchandise than ever before.”

  • Siam Center fashion pop up Asian labels

    Siam Center fashion pop up Asian labels

    ‘A-very-wear’ – a new exclusive multi-label Siam Center fashion pop-up store – aims to showcase Asian designers in Thailand.

    Located in the Ideapolis A-very-wear, bears the motto of “A piece that is very you to wear” on the Siam Center’s first floor.

    Parisa Chatnilbandhu, group senior VP – retail business development of Siam Piwat says fashion plays a major role in youngsters’ lifestyle, especially in Asia.

    “As we can see, the Fashion Week in each season in Korea, Japan and Singapore attracts hipsters from around the world, including Thai celebrities who fly to these countries just to bring the fashion items back.”

    A-very-wear 5

    Responding to the trend, Siam Center has created A-very-wear as a first exclusive multi-label fashion pop-up store of Asian designers, to “bring the ultimate Asian fashion experience to Thailand”.

    Siam Center has carefully selected a wide variety of well-designed products and introduces Absolute Siam items, which are exclusively available at Siam Center, to help the fashionistas make the style statement of their own under the motto of “ A piece that is very you to wear”, Parisa said.

    A-very-wear 4

    A-very-wear carries apparel, accessories, including eyeglasses, watches and more, from 15 renowned Asian fashion brands from six countries: Korea, Japan, Singapore, Hong Kong, Indonesia and Taiwan.

    “Each designer is very popular on social media, with many followers on Facebook and Instagram. During the first six months, the hipsters can update the trend from four countries, namely Korea, Japan, Singapore and Taiwan, while the other two, Hong Kong and Indonesia, will join in the next six months.”

    For its opening, A-very-wear introduces six well-known Korean brands:

    • Fleamadonna, launched in 2007, has bold style and unique characteristic. It was well received by fashionistas and celebrity fans including Pink, Paris Hilton, Miranda Kerr and Girl’s Generation girl band.

    Fleamadonna- A-very-wearFleamadonna3-A-very-wear

    • Low Classic by Lee Myoung Shin presents the simple and classic ready-to-wear perfect for any occasion.

    Low Classic-A-very-wearLow Classic 2-A-very-wear

    • Drink Beer Save Water is originated from the fun idea of the designer Jim Park, who thought “Why don’t we drink beer to save the water?” From this extreme idea, he presents the unisex collection under the same name as his brand, which has been growing both male and female fan base. The clothes reflect their true personality, having fun dressing.

    Drink Beer Save Water- A-Very-wear

    • Rocket x Lunch is a woman’s fashion brand designed by the talented Jin Won Woo. The brand is popular among hipsters for its minimalist style that can be worn on any occasion. It also showcased its creation in “Who’s Next in Paris 2015 Spring Summer” in France.

    Rocket x Lunch - A-very-wearjpgRocket x Lunch A-very-wear

    • A.Bell Korean accessory brand was established in 2010. It includes bag decorations, necklaces and bangles to create a glamorous, trendy look.

    A.Bell 1- A-very-wear
    A.Bell- A-very-wear

    • Minuit Moins Sept, another chic Korean accessory brand, has the French name means ‘seven minutes to midnight.’ It indicates the beginning of a new day when good things are about to happen. Popular among male and female wearers, the simple yet elegant geometric design are made of silver 925 as the key material, with the key shade of gold, silver, dark blue, red and white.

    31.Minuit Moins SeptMinuit Moins Sept 1- A-very-wear

    Singaporean fashion labels include:

    • Mash-up, popular among fashion-forward people in Singapore, is the brainchild of three talented designers; a street fashion brand which incorporates inspiration from music, movies and the designers’ travelling experience.

    Mash ñ up-A-very-wear

    • Yesah, established by Linda Hao, a Chinese Singaporean-born designer, who combines her experience in modelling and an education in fashion. In 2013, she launched the brand with distinctive characteristic, to serve the lifestyle of confident ladies who enjoy life.

    Taiwanese brands include:

    • Momo’s March by Christina Lu, a Taiwanese American-born designer, who put together a range of materials, such as Russian diamond, brass, seashell, pearl and gemstones, into exquisite accessories under the concept of “Wearable thought,” practical for any time of day.

    Momoís march -A-very-wear

    • YU Square by Ringo Yu is famous for its sewing technique, which integrates the embroidery into the design. Furthermore, the fashionistas can mix and match its colorful blouses, skirts and socks to suit each occasion.

    YU Square A-very-wear

    From Japan:

    • Normal Timepieces, a minimalist-style Japanese watch brand, was brought to life by American designer Ross McBride. Having spent years in Japan, he was influenced by Japanese culture and incorporates it into his creation, which projects simplicity with a great sense of style.

    Normal Timepieces A-very-wear

  • Thai events organiser taps into Myanmar’s showbiz potential

    Thai events organiser taps into Myanmar’s showbiz potential

    Co-chief executive officer Kriangkrai Kanjanapokin said yesterday Myanmar was transforming into a new era of development that needed infrastructure, real-estate projects, accommodation and transport.

    This presented a huge opportunity for foreign investors, including Thai enterprises.

    Through its joint-venture company ICVeX based in Yangon, Index Creative Village will next year hold “Myanmar FoodBev” and “Myanmar Retail Expo” from August 18-20 and the third edition of “Myanmar Build and Decor”, from October 6-8 at Myanmar Event Park, which is owned and managed by business partner Forever Group.

    Kriangkrai said the construction industry in Myanmar was growing fast, with a compound average growth rate of 20 per cent. The residential and infrastructure sectors comprise almost 80 per cent of the industry, especially residential projects, which account for 49 per cent of investment value.

    According to the Myanmar Department of Human Settlement and Housing Development, only 7,000 houses are currently being constructed but annual demand appears to be around 20,000 units. The government has indicated its willingness to cooperate with the private sector in the construction industry in key cities such as Yangon and Mandalay while carrying out construction in other areas of the country using government loans.

    “We hope that ‘Myanmar Build and Decor’ will be a platform that enables Thai companies related to the construction industry to meet local developers for greater cooperation,” Kriangkrai said.

    He also said there were lots of opportunities for retail business, which was being transformed from traditional to modern trade.

    To cash in on this transformation, major retailer Siam Makro is reportedly keen on expanding its business in Myanmar.

    However, Kriangkrai believes that traditional shops will also look at improving their service with new equipment and management systems from Thai companies on display at Myanmar FoodBev and Myanmar Retail Expo.

    Apart from trade fairs, the company has also formed a joint venture with Suravath Pinsuwanbutr, the owner of Myanmar Alliance Travel and Tours, to offer marketing service for brands and products.

    This service includes organising direct marketing, product demonstrations at points of sale, on-the-ground event and lucky draws.

    Suravath said that after operating for two months, the JV had secured seven or eight projects. The tourism business is another area that Index Creative Village wants to focus on in the near future.

    After entering a partnership with Bagan Myanmar, a travel and hotel operator, the company invested Bt50 million on light and sound equipment for the “Dandaree” cultural show. Kriangkrai hopes the show will hit break-even point within four or five years. Next year, he plans to introduce this show to international tourism operators at the “Asia Tourism Forum” in the Philippines, “ITB Berlin” in Germany and “World Travel Market” in Britain.

    He said he was in talks with another company based in Yangon that is keen on a similar cultural show.

  • Lazada’s Marketplace offers merchants a wide one-stop retail gateway

    Lazada’s Marketplace offers merchants a wide one-stop retail gateway

    Lazada Marketplace in the region accounted for 80 per cent of the company’s Gross Merchandise Value (GMV) or overall sales as at the end of August 2015.

    Alessandro Piscini, CEO of Lazada Thailand, said Lazada Marketplace was the engine of the company’s growth, attracting local merchants who were reaping the rewards of partnering with Lazada.

    “We can fulfil all customer shopping needs effortlessly on their behalf, and added to our committed investments in logistics, tech development and payment solutions, no other eCommerce player can offer a similar one-stop retail gateway to Thai merchants,” said Piscini.

    As e-commerce continues to grow in Thailand, Lazada marketplace offers opportunities for both new and experienced sellers to reach new markets, benefit from Lazada’s support in advertising their goods and monitor critical data on how their store is performing. With more than 4.5 million daily visits to its sites and close to 100 per cent geographical distribution coverage, Lazada has become the clear choice for sellers throughout Southeast Asia, said Piscini.

    Since opening to local merchants, over 7,000 Thai businesses have chosen to sell their goods at Lazada Marketplace, supplementing products from established brand names such as Tesco Lotus, L’Oreal and Philips.

    Sellers are well-supported by Lazada’s end-to-end model that takes care of their needs from order to delivery, and they also benefit from having direct access to Lazada’s established customer base, infrastructure and analytics.

    The Seller Centre, for example, provides a one-stop online platform to manage inventory, pricing, promotions and orders, with a recently released Seller Centre Android app adding enhanced search, notifications of new orders and sales performance, helping marketplace sellers manage their business on-the-go.

    Small and medium business can also tap into Lazada University to equip themselves with marketing tools in order to increase their visibility online and maximise profits.

  • Thailand’s Consumer Sentiment Sees First Improvement in 10 Months in October

    Thailand’s Consumer Sentiment Sees First Improvement in 10 Months in October

    Thailand’s consumer sentiment recovered for the first time in 10 months in October, thanks to the government’s continued introduction of economic stimulus measures.

    The University of Thai Chamber of Commerce said Thursday that the consumer confidence index rose to 73.4 in October from 72.1 in September, when the index hit its lowest level in 16 months. The monthly consumer confidence report is based on a survey of 2,244 respondents.

    Thanavath Phonvichai, director of the university’s Economic and Business Forecasting Center, told a news conference that the government’s continued introduction of a series of economic stimulus packages has helped boost consumer confidence.

    In the past few months, the Junta-installed government has unveiled a number of short-term economic stimulus measures, including a 136 billion baht ($3. 8 billion) package aimed at low-income households, a 10 billion baht ($282 million) budget to boost the property sector and new tax incentives for the private sector to speed up or increase investments.

    Deputy Prime Minister Somkid Jatusripitak, who is in charge of the economy, said this week that the government is confident that all measures will start yielding fruit from the fourth quarter of this year.

    Mr. Thanavath of the Thai Chamber of Commerce University said falling retail oil prices and a rebound on the Thai stock market have also helped improve sentiment.

    However, he noted that while the university believes the country’s economy might have bottomed out, its growth outlook remains fragile.

    The government has forecast the Thai economy will grow between 2.7% to 3.2% in 2015.

  • Mobile commerce on rise

    Mobile commerce on rise

    Mobile commerce in Thailand has continued to cement itself as a significant online marketplace thanks to the greater availability of high-speed wireless broadband internet and affordable smartphones, say global internet and online retail companies.

    Attractive mobile commerce campaigns by e-commerce operators is also attributed to the surge in mobile commerce.

    Compared with the US, Japan and South Korea, Thailand’s online retail industry remains tiny, accounting for less than 1% of the total retail market, Lazada Thailand chief executive Alessandro Piscini told a seminar yesterday entitled “E-Commerce: The Secret Success for the Online Generation”.

    However, he said imminent fourth-generation commercial wireless broadband service was expected to boost the number of mobile internet users and lower mobile tariff rates.

    “Half of Lazada Thailand’s total online sales came from mobile phones, a five-fold increase from last year,” Mr Piscini said, adding that health and beauty products, mobile devices and fashion items were the top-three sellers.

    To further boost sales, Lazada Southeast Asia and its partners will hold its biggest sale of the year, Online Festival, from Nov 11 to Dec 12, providing up to 10 million products in 13 categories.

    Ratthasart Korrasud, senior director of the Electronic Transactions Development Agency (ETDA), said it encouraged retailers and manufacturers to comply with the UN Standard Products and Services Code, a taxonomy of products and services for use in e-commerce, for more efficient and accurate classification of products and services.

    The ETDA is also promoting the use of its online complaint centre among e-commerce users to ensure consumers’ trust and confidence in e-commerce.

    Wanna Swuddigul, director of digital and online business at Ek-Chai Distribution System, said local retailers must quickly expand to the online channel to accommodate rapidly changing consumer lifestyles.

    Thailand’s e-commerce is among Southeast Asia’s top three for growth potential thanks to its population, greater development of wireless infrastructure and Thais being highly engaged online.

    Tesco Thailand’s online sales, expected to account for less than 1% of total sales this year, are forecast to rise to 5% of the total by 2020, said Ms Wanna.

    Deepesh Trivedi, Facebook’s head of retail and e-commerce for Southeast Asia, said Thailand’s e-commerce would continue growing, driven mainly by the increasing number of mobile internet users.

  • Aeropostale inks licensing deals in Thailand

    Aeropostale inks licensing deals in Thailand

    US casual apparel retailer Aeropostale has signed two licensing deals that will see it expand in the Asia and the EMEA region, opening stores in Thailand and Egypt over the next five years.

    Through its deal with Robinson Department Store Public Company, Aeropostale plans to open 40 standalone and shop-in-shop locations in Thailand. The first will open in the Robinson Department Store in Sriracha.

    In Egypt, Aeropostale has signed a licensing agreement with Q and A Retail Company to open 40 standalone stores over the next five years.

    Aeropostale’s expansion plans in both locations are due to begin in early 2016.

    “Aeropostale’s international expansion began in Asia and the Middle East and it is with great pleasure that we announce further expansion across these key regions,” said CEO Julian Geiger. “Thailand and Egypt will be important markets as we continue to expand globally across Asia, the Middle East and Africa. We are confident that our partnerships with Robinson Department Store and Q and A Retail Company will ensure that the Aeropostale brand will continue to thrive and prosper internationally.”

  • Home-grown label M)phosis shuts stores

    Home-grown label M)phosis shuts stores

    Fashion brand M)phosis, once cited as among the more successful home-grown labels, has shut all its stores in Singapore.

    The Straits Times understands that all its outlets in Vietnam, Malaysia, the Philippines and Indonesia – more than 10 of them – are in the process of folding. Only its stores in China are still open.

    “In China, we are still in the marketplace,” the brand’s director, Mr Hensley Teh, told The Straits Times yesterday.

    “We were having a severe cash flow situation. We were not able to continue, despite wanting to. We did everything we could,” he said, adding that all staff at the affected outlets have been retrenched. “We thank our customers, who have supported us all these years.”

    The last M)phosis (pronounced “emphasis”) outlet to shut here was the one in VivoCity on Aug 25, but many former customers are now angry about being unable to redeem the vouchers they bought.

    STUCK WITH VOUCHERS

    They may have already known that they were going to shut down and they still sold the vouchers.

    MS CECILIA YEO, an upset customer who has $60 worth of unused vouchers

    Ms Cecilia Yeo, 37, said she was sold vouchers in April and was a “lifetime member” of the chain.

    “I am supposed to get 10 per cent discount for a lifetime,” she said, adding that she has $60 worth of unused vouchers.

    “When I bought them, staff told me not to worry about the expiry date. They may have already known that they were going to shut down and they still sold the vouchers. That is not right,” said Ms Yeo, a sales executive.

    Mr Teh said he is “deeply sorry” that not all vouchers had been redeemed.

    The chain had tried to reach out to as many customers as they could, to ask them to make redemptions before the last outlet shut, he said, adding: “We don’t take the matter lightly. But we are not in a position now to make any promises.”

    M)phosis first opened in 1994 at Change Alley.

    Catering to women aged 18 to 35, and selling clean-cut designs in solid colours, it soon expanded to more than 10 outlets.

    By 1998, it had four stores in Jakarta and two in Kuala Lumpur. In 2009, it opened its first boutique in China. It then expanded into Dubai, Japan, Thailand, Vietnam, Australia, Hong Kong and the Philippines. The Dubai, Japan, Australia and Hong Kong stores shut several years back.

    At its peak, the brand had more than 30 outlets in total.

    Ms Sarah Lim, a senior retail lecturer at Singapore Polytechnic, said that stiff competition in the retail market was likely to blame for M)phosis’ downfall.

    “The brand sells many clothes in classic cuts and colours. But there are so many brands out there that sell the same thing.

    “Large international names, like Zara, have similar items at lower prices with better designs,” she said, adding that the firm may have spread itself too thin during the expansion phase.

    Mr Seah Seng Choon, executive director of the Consumers Association of Singapore, said that it would be difficult for customers to get refunds for unused vouchers.

    “If the shop has already shut down here, and there are no other places to redeem the vouchers, there is not much customers can do,” he said, adding that they can choose to hire a lawyer to sue the firm. “But doing this is costly and does not make sense. Also, even if they do that and win, the company may not have assets available for claiming and cannot honour the vouchers anyway.”

  • Trade between Thailand and Chile to double as FTA starts

    Trade between Thailand and Chile to double as FTA starts

    ANNUAL trade between Thailand and Chile should double to US$2 billion (Bt71 billion) in the next three to five years, thanks to the free-trade agreement (FTA) between the countries, which comes into force today.

    “Bilateral trade and investment should grow after the liberalisation of both markets, since Chile can be a gateway for Thailand to penetrate Latin American countries.

    “While it will help Thailand open opportunity to be part of the Trans-Pacific Partnership in the future, as Chile is already part of this, the world’s largest trade bloc,” Commerce Minister |Apiradi Tantraporn said yesterday.

    The free-trade pact with Chile is Thailand’s second bilateral FTA with a Latin American country – the other being with Peru – and the seventh overall, after the agreements with China, India, Japan, Australia and New Zealand.

    The pact should also help increase the Kingdom’s trading competitiveness with key rivals, including China and Vietnam, as Thailand has negotiated better benefits than those contained in Chile’s FTAs with those two countries, she said.

    Thai rice should also gain greater market access to Chile, as import tariffs for the produce will be reduced to zero within five years, she added.

    Besides the trade in goods, the FTA will also cover service-sector liberalisation, while negotiations between Thailand and Chile on investment liberalisation will be held within the next two years.

    Under the pact, tariffs for 90 per cent of trade in goods – 7,129 out of a total of 7,855 items – are being cut to zero immediately. For another 296 items, tariffs will gradually be reduced to zero over a three-year period, while those on a further 283 items will fall to zero in five |years.

    For the remaining 147 items, which are regarded as sensitive goods, import duties will be brought down to zero in eight years’ |time.

    Under service-sector liberalisation, Thai enterprises will be able to hold 100-per-cent ownership in service businesses in Chile, in sectors such as legal services, consultancy, engineering, computer services, retail and wholesale, and services related to the production sector.

    Apiradi said that Thai massage, Thai kick-boxing and other recreational services in which Thais have high expertise, should be able to open up more to businesses in Chile, thanks to the pact.

    She also suggested that Thai businesses and investors urgently explore the Chilean market, as the country is rich in natural resources and is a trading centre in South America.

    High potential goods

    Thai goods with the highest export potential to Chile are pickup trucks, cement, electrical appliances, plastic pellets, rubber products, as well as canned and processed foods.

    Service businesses with opportunities to grow in Chile are engineering, logistics, energy, mining and retail, hotels and hospitality, sports and recreation.

    Chile is Thailand’s third-largest trading partner in Latin America, after Brazil and Argentina, while the Kingdom is Chile’s largest trading partner among Asean countries.

    Bilateral trade was worth about $960 million last year, with Thailand enjoying a surplus of about $300 million.

  • Robinson Thailand plans more border stores

    Robinson Thailand plans more border stores

    Thai department store chain Robinson says it will open outlets in planned special economic zones to encourage cross-border trading.

    The Central Retail Corporation subsidiary says it will open a new Lifestyle Centre at Mae Sot in the Tak province, on the border with Myanmar. It follows a similar store which opened in Mukdahan, on the border with Laos, last year.

    “These stores are being built to take greater advantage of cross-border trade,” CRC international business director, and Robinson president Alan Thomson said in an interview published in The Nation.

    “SEZ projects are good initiatives but will take time to develop and for us to realise any opportunities,” he said.

    CRC operates 42 department stores in Thailand; and two more in Vietnam – one in each of Ho Chi Minh City and Hanoi – which trade under the Robins brand name. Its 15 Lifestyle Centres are additional to those.

    In the interview, Thomson talks about the company’s performance in Vietnam to date, its plan to add a well known US apparel brand to its store-in-store brand portfolio next year and how the company is coping with the stagnant Thai economy.

  • 4G auctions set to generate B1.3tn

    4G auctions set to generate B1.3tn

    A woman walks past telecom and cable lines along Phahon Yothin road. The 4G auction is expected to spur huge investment in telecom lines. PATTARAPONG CHATPATTARASILL

    The imminent fourth generation (4G) spectrum auctions could stimulate direct and indirect investment valued at 1.3 trillion baht over the next five years.

    The development will also transform Thailand into an internet-empowered economy and add impetus to the country becoming an Asean digital infrastructure hub by 2020, said Takorn Tantasith, secretary-general of the National Broadcasting and Telecommunications Commission (NBTC).

    The private sector, meanwhile, believes that having faster high-speed mobile network technology will promote the country’s e-commerce.

    The NBTC expects to receive at least 73 billion baht from the 4G spectrum auctions of four licences in November. The revenue will pass directly to state coffers, Mr Takorn said at a seminar entitled ‘4G: the turning point of the country’.

    The winning bidders of the 4G auctions must roll out networks worth a combined 160 billion baht in 2016.

    An additional 260 billion baht will come from telecom-related businesses and employment in 2017, plus another 300 billion baht in 2018.

    Based on an internal estimate, Mr Takorn said all direct and indirect investment stemming from the 4G auctions would reach 1.3 trillion bay by 2020, in line with a study by the economics faculty of Chiang Mai University.

    “Thailand can no longer afford to lose this opportunity for the sake of our country and our people,” he said.

    There are 104 million mobile subscribers in Thailand, only 4 million of whom are 2G users.

    Worawoot Aunjai, chief executive of Central Online Plc, said having a 4G infrastructure would directly benefit the local e-commerce and online trading industry. It will also encourage small and medium-sized enterprises to grab a bigger slice of the e-commerce market.

    “Companies without technology will find it nearly impossible to flourish in the current business environment,” he said.

    Mr Worawoot said development of the 4G infrastructure was essential to accommodate the rapidly changing needs and growth of businesses.

    He said Thailand’s retail trade via online transactions accounted for only 1% of total retail trading value, compared with 5.8% of the average global retail market and 12% in China.

    Global online trading is expected to account for some 20% of total retail trade by 2020.

    Mr Worawoot said online trading was expected to reach 8% of the total retail trade in Thailand by 2020.

    “The growth of online trading will be in line with the quality of wireless connection and affordable mobile devices,” he said, adding that 4G service will play a crucial role in driving the local e-commerce industry.

    Mr Worawoot said Central Group’s annual retail sales were expected to reach 260 billion baht this year, half of which will be conducted via mobile devices.

    Ariya Banomyong, managing director of Line Thailand, said the quality of wireless connections and telecom infrastructure could attract foreign investment from global tech companies such as Google, Facebook, Amazon and Apple.

    “This will promote Thailand as a regional digital infrastructure hub,” he added.

    Vichai Bencharongkul, honorary president of the Telecommunications Association of Thailand, said developing an internet-based economy would essentially need a high-speed telecom infrastructure, developing knowledge workers and building organisational confidence with digital practices.

    4G service is expected to ensure wireless service continuity and provide business recovery experience, thanks to the greater speed of wireless data services, said Mr Vichai.

  • Ascend expands its Asean reach

    Ascend expands its Asean reach

    “The move is to drive Ascend, both iTrueMart and Weloveshopping, to be the e-commerce market leader in the AEC by 2018,” Punnamas Vichikulwongsa, president of Ascend Group, said yesterday.

    According to Euromonitor 2015, the report of Euromonitor International, a business-intelligence research house, the business-to-consumer e-commerce market in the AEC will grow by 20 per cent per year to US$7 billion (Bt249 billion) in 2017 from nearly $5 billion this year.

    Thailand’s e-commerce market is worth about Bt42 billion with annual growth of 20 per cent.

    The company will engage in operating, fulfilment including warehousing and logistics, and marketing actives in seven countries in the AEC – the Philippines, Indonesia, Malaysia, Vietnam, Singapore, Myanmar and Cambodia.

    It will start with the Philippines by the end of this year and follow with the other six countries in 2016.

    The AEC market should help double its sales to Bt6 billion next year from Bt3 billion this year, which all comes from the Thai market.

    E-commerce in Thailand and the AEC has high potential since it now accounts for only 1 per cent of total retail shopping. In five years, it will be about 7-8 per cent of the retail industry in Thailand.

    E-commerce makes up 9 per cent in the United States and 13 per cent in the United Kingdom.

    “E-commerce is a market for the big boys, since it needs huge capital. In each market, there are only one or two e-commerce players dominating the market. We want to be ‘top of mind’ in the e-commerce business in the region,” he said.

    The business model of iTrueMart is different from Weloveshopping. iTrueMart acts as an online shopping department while Weloveshopping serves as a e-commerce marketplace.

    Ascend claims itself as the e-commerce leader in Thailand with 14,000 orders per day, split evenly between the two websites.

    Seubsakol Sakolsatayadorm, general manager of the iTrueMart division at Ascend Commerce, said iTrueMart’s conversion rate of 4.2 per cent of visits was higher than the market average of only 2 per cent.

    At iTrueMart, information-technology gadgets and accessories are still the largest contributor at 70 per cent. Orders have gone up fivefold this year since product categories were diversified from hard lines to soft lines, such as personal care and beauty products, and home lines such as household appliances.

    “The latest is a mum-and-kids category, since it is one of the largest in e-commerce in many countries,” he said. ITrueMart has invested heavily in fulfilment, warehouses and logistics. It has more than a million products, or more than 20,000 stock-keeping units, stored in its warehouse. The company delivers products through its own distribution system in Greater Bangkok with a 20-vehicle fleet and outsourcing to logistics partners.

  • King Power duty free sales +47% in Thailand

    King Power duty free sales +47% in Thailand

    Forward bookings from airlines and indicators from leading travel agents suggest that Chinese arrivals to Thailand will reach record levels in 2015, as the King Power International Group reports sales up by 47% this year.

    Speaking to TRBusiness in a detailed interview this month, she said: “With the exception of the tragic bombing in August, 2015 to date has been a very good year for the group. Traffic to Bangkok particularly has increased very significantly.

    “Overall traffic at Suvarnabhumi is up 19.16%, to the end of August, and traffic at Don Muang is up 65%. Within those overall traffic numbers there are specific nationality changes that have generally had a very positive impact on sales.

    “Total Chinese traffic at Suvarnabhumi is up 151% to 5,651,591 passengers. Indian passengers are another very important customer group for us and the traffic with them is up by 20% – and of the other key customer groups, Korean and Japanese traffic levels are up 38% and 13.3% respectively.”

    She added that these positive increases have offset the decrease in Russian passengers (-49.8%) and Thai nationals, who are down by 14.73%. more happily she said: “Overall group sales are up 47%, versus the same period last year.”

    Whelan pointed to an outstanding +72% sales performance by the cosmetics and skincare category, followed by watches (+76.68%), Jewellery (77.05%), tobacco (+ 30.08%) and leather goods(+ 30.94%).

    She says this impressive growth has been driven by a combination of factors, including organic passenger growth and aforementioned rises in high spending overseas visitors.

    An interview with Susan Whelan appears on page 30 of the October Cannes exhibition issue of TRBusiness and also on pages 81-85 in the bonus retail section of the Top 10 International Retailers 2015.