Mall eyes Lunar New Year sales

But the group remains cautious about its overall revenue target for this year, which is expected to grow a modest 5 per cent from Bt43 billion last year.

Its growth in 2007 was 7 per cent higher than 2006.

"We have lowered the target to avoid applying excessive pressure to reach tough targets," the group's senior chief marketing officer Chamnarn Maytaprechakul said.

Throughout last year, retailers have suffered weak local demands amid political and economic uncertainties.

The Mall Group is expected to hold big campaigns throughout the year to boost sales.

It will incorporate marketing campaigns for its three mall brands, focus on clear target groups, strengthen business alliances and ensure cost efficiency.

Group general manager for marketing Natsamon Vongkittipat said the firm did not expect the government to specifically boost retail businesses. Instead, it expects the government will spur the economy as a whole. In so doing, it will improve consumer confidence, which in turn will increase consumption.

Chamnarn is upbeat about achieving strong sales during Chinese New Year because of good timing and the company's extended sales period for this event.

Although Chinese New Year falls on February 7, celebrations begin as early as February 5.

This period bodes well for retailers as consumers should have ample cash, having just been paid their salaries at the start of the month, he said.At the same time, the Mall will extend its Chinese New Year sales campaign to 25 days from 15 days last year.

The new campaign starts this Thursday and runs through February 17.

Kasikorn Research Centre predicted Bt6.4 billion in red packets would be distributed countrywide during this time.

These traditional bonus packages - often given to staff and their children at Sino-Thai firms together with monthly salaries - should spur shoppers to spend more during this period.

According to Chamnarn, 87 per cent of Bangkok residents will not travel upcountry but stay home during this period.

Of this amount, 75 per cent were quite likely do some of their celebrating at malls.

Consumers usually spend Bt1,000 each per outing.

The group has devised unique campaigns for its three segments of stores.

"The Mall Happy Chinese New Year" campaign will be employed at all its Mall brand outlets.

For its more upmarket brands such as Emporium and Siam Paragon, it will promote its "Dragon Sale" campaign.

Chamnarn said the company would not organise big entertainment events like it did last year. Instead, it will engage a more subdued approach.

This move was adopted out of respect for HRH Princess Galyani Vadhana, who passed away earlier this month.

 The low-key campaigns will instead offer attractive discounts of up to 50 per cent on some goods and lucky draws for customers.

He said all retailers were expected to compete for sales to maximise income during the celebrations.

As for business confidence, Chamnarn said the group was upbeat about the future. It expects this year would see a more stable economy because a better political outlook should come with the return of democratic rule.

Nitida Asawanipont

The Nation