Boots sets Bt100m plan to boost retail stores

"We have set our expansion plans in Thailand for the next two to three years and are now close to the target. However, our expansion will depend on the locations we find and how well the Thai economy performs," managing director Ian Hunter said yesterday.

While business in general would be tough in October or September due to the current economic and political difficulties, Boots would show stronger double-digit growth this year, he said.

"The market for healthcare products is expected to expand faster in the future due to people's stress and exposure to pollution in their daily lives. Consumers have to take greater care of their health," he said.

This year growth in overall demand for health and beauty products was expected to be 8-10 per cent, but pharmaceutical sales would do better at 19 per cent, he said.

Boots has 3 per cent of the health and beauty market, excluding pharmacy.

Boots yesterday relaunched its brand loyalty programme "Boots Health Club" to encourage consumers to adopt a healthcare lifestyle.

The new programme was created in partnership with leading hospitals, fitness centres and insurance companies, including Bangkok Hospital Medical Centre, Samitivej Hospital, BNH Hospital, Ayudhya Allianz CP and Fitness First. Members can enjoy many benefits and discounts.

Thailand is the second country after the UK for the loyalty health campaign, to be followed by key markets in the Middle East such as Dubai and Kuwait.

"We launched the Boots Health Club campaign in June last year and have about 15,000 members so far. We expect the relaunch of this loyalty campaign will help increase the number of members by at least threefold this year.

"The campaign will help the company to understand our customers better on what they're looking for. We are able to communicate directly with our customers via e-mail," Hunter said.

Holders of Boots Health Club cards will get a 5-per-cent discount on any purchase of health-related products at Boots. A 10-per-cent discount will be offered to cardholders aged 60 and up.

"The membership card will be swiped every time a member makes a purchase. This information will be kept and analysed for further marketing activities, particularly personalised ones," he said.

About 20 per cent of sales at Boots comes from medicine and 40 per cent from healthcare products. The rest was from skincare and cosmetics products. Customer purchases average about Bt300 per transaction.