Sales of consumer products increased between 6 per cent and 10 per cent in the first five months of last year, said Thailand managing director Parinda Hasdarngkul.

"However, we saw a slowdown in the final quarter of last year as well as the first quarter of this year - which witnessed growth of between 3 per cent and 4 per cent only compared with the same period last year," she said.

"Consumers began to spend more cautiously and are taking a pessimistic view of the economic situation this year," Parinda said.

P&G sells fabric cleaners and softeners, hair and skin care, razors, soaps and other cleaning products in the Bt100 billion-a-year market. The company estimates the  consumer- product market would grow by about 5 per cent this year.

"Our key strategy to counter the recession is to launch new products developed by sophisticated market research," Parinda said.

She added that more than 30 new products would hit shelves this year sporting the company's "flagship brand names". Last year there were 25 new products or "product innovations", she added.

P&G yesterday reported double-digit growth last year, driven by "integration of Gillette razors and Fab laundry detergent".

"P&G Thailand has enjoyed another year of continued success by understanding what consumers want and meeting their needs through a growing range of innovative products and excellent execution," Parinda said.

She said buying the Gillette  and Fab brands was a "highlight". The company now sells 19 brands.

Gillette razor sales were growing at "double-digit pace because of product innovation and expanded distribution". It now accounts 70 per cent of the razor market.

The company said Fab's fortunes were on the "upswing after years of decline". The company launched a new jasmine-scented version of the detergent, which appealed to consumers in Thailand because of the "respectful tradition of presenting jasmine garlands to parents".

"Around the world P&G is the leader in detergent and we have brought this expertise to Fab in Thailand," she said.

"We focus on understanding what Thai consumers want and we are delivering it with a locally customised product that makes clothes cleaner and brighter," she added.

Parinda said P&G in Thailand could increase its exports this year by Bt4 billion, to Bt14 billion. It exports to 20 countries."In the economic downturn and political uncertainty we will maintain investment in Thailand," she said.

The company has said it will spend Bt3.5 billion building factories and distribution facilities over the coming three years and on staff training.

It holds more than 90 training courses every year and for new recruits, and as much as 40 per cent of their first year is spent in "professional development courses and activities".

Kwanchai Rungfapaisarn

The Nation