Siam Paragon and The Emporium shopping complexes said sales of luxury and brand-name products fell between 5 per cent and 10 per cent in the quarter.

Versace, the luxury apparel and accessory brand, saw sales fall almost 30 per cent in the first three months of the year compared to the same period last year.

And with economic and political uncertainty expected to continue, sales of luxury and brand name products are expected to remain lacklustre for the rest of the year or even decline.

Even direct-sales titan Amway (Thailand) has been affected. It said sales were flat in the first quarter and forecast a full-year decline of between 2 per cent and 3 per cent from last year when its sales totalled Bt9.7 billion.

Its managing director, Preecha Prakobkij, has his sights set on next year. "The economic situation is not good and that is our top concern. However, we expect the economy will be better next year," he said. Diethelm said sales of its premium footwear brand Clarks fell 10 per cent in the first quarter.

"Due to economic uncertainty, Thai consumers are quite reluctant to spend money," said Chukiat Tokamolthum, manager of Diethelm's consumer products division.

The company would respond by offering a wider assortment of designs.

Chukiat said that the only positive factor for sales of imported products was the appreciation of baht, which helped absorb the rising cost of raw materials.

"The appreciation of the baht helps us to maintain the price of our imported items at the current level, and that affects consumers who are quite concerned about price at this time of economic difficulty."

Chukiat added that despite rising inflation, the price of Clarks footwear had been maintained for almost three years.

The company will hasten the launch of new footwear designs. "Four different designs of female footwear and three of male footwear will be launched locally every month," said Chukiat.

Sales of Clarks shoes are expected to accelerate in the second quarter and the company remains confident it can achieve sales growth of between 15 per cent and 20 per cent for the full year, he said.

Siam Paragon's chief of marketing Kriengsak Tantiphipop said demand for luxury products, including high-end fashion, had hit bottom due to economic and political difficulties.

"The retail and shopping complex industry in the first four months of this year was not good. Despite having customers with brand loyalty, most luxury products recorded lower sales in the first quarter due to negative economic factors and the reluctance of consumers to spend," Kriengsak said.

Siam Paragon still attracts 200,000 visitors a day thanks to its central location and it will launch an aggressive campaign to pique the interest of shoppers, he said.

"Even though the baht's appreciation makes imported items, such as jewellery, cheaper, consumers remain quite cautious and think twice before buying," Kriengsak said.

Kwanchai Rungfapaisarn,

Nitida Asawanipont

The Nation