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Wed, February 28, 2007 : Last updated 13:50 pm (Thai local time)



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Home > Business > Mall Group sports the latest in sports goods





Mall Group sports the latest in sports goods

Relocating to lower-cost countries is allowing sports-equipment manufacturers to slash production costs by between 5 per cent and 10 per cent a year, leading to lower prices for consumers.

Many big brand-name makers have factories in China, Thailand and other Southeast Asian countries.

Saridpong Rattanapote, chief merchandising officer for The Mall Department Store, said manufacturers preferred to make goods in Asia because of low-cost, skilled labour.

He said relocating to Asia had allowed manufacturers to shave between 5 per cent and 10 per cent off costs.

But innovative products still fetch top dollar and makers are spending big on research and development to grab a share of the lucrative market.

Spending on sports equipment and apparel in Thailand has reached Bt20 billion a year. The lion's share is on standard lines and the rest goes on new, groundbreaking products.

One-fifth of all sales today are over the Internet and other "modern trade" channels.

The Mall Group's sports outlets enjoyed sales of Bt1.5 billion last year - a 25-per-cent increase on 2005. The company hopes to hit Bt2 billion this year.

The company is bullish about sales growth in spite of a slowing economy and political uncertainties, Saridpong said,

People are spending more time at leisure and sport, he added.

The group will splash Bt15 million on sales promotions starting with its "Ultimate Golf World 2007", which runs until March 5.

It is a showcase of the latest in golf equipment and apparel from the world's top brands.

One of the crowd-pleasers is the latest in golf-driver technology - the "square wood". Manufacturers Callaway and Nike have versions on show.

The company spent Bt4 million on the event and hopes to realise Bt20 million in sales.

"The golf-equipment and apparel market is worth Bt3 billion and those playing have greater purchasing power, too," Saridpong said.

Golf accounts for one quarter of sports-goods sales for The Mall. The bulk - 50 per cent - is footwear and athletic clothing.

The group plans three more sales promotions this year.

Somluck Srimalee, The Nation








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