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JBP International Paint, a coating and paint manufacturer under the JBP brand, expects to benefit from the economic slowdown as consumers may switch to using its lower-priced products.

Marketing director Sarawut Rachanakul yesterday said purchasing power had declined, because of the sluggish economy. The property sector has also been affected by the slump.

However, he said, JBP has good production management without the high marketing costs of other brands. The company can therefore price its products 7 to 8 per cent lower than other paint brands.

"We sell paint and coatings at reasonable prices. When comparing our products with other brands of the same size and type, I have a strong belief that JBP products have the lowest prices in the market. Thus, we will be the alternative choice for Thai consumers in these difficult economic times," he said.

Although the state of the Thai economy next year is expected to be worse than this year, JBP believes the company can maintain revenue growth at its average rate of 8-10 per cent, he said.

The company expects sales this year at Bt1.2 billion, up 10 per cent from last year.

Sarawut said JBP would next year continue its strategy of building strong partnerships with its 700 distributors across the country by working closely with them.

The company will also seek more openings to supply property projects.

At present, 80 per cent of JBP's revenue comes from sales through distributors, with the remaining 20 per cent contributed from property projects. It supplies all of Preuksa Real Estate's projects, as well supplying the LPN Development Group.

He said JBP might promote its products through mass media such as television advertising next year, having frozen its marketing through that particular channel for the past 20 years. It felt the large expenditure involved was not until now justified by the end results.

"JBP recently celebrated its 30th anniversary and we want to emphasise our brand in the market again after undertaking silent marketing activity for about 20 years. However, as everyone in the business knows, the net profit margin in the paint industry is not high. Therefore, we have to be careful in our investment," he said.

JBP's gross profit margin is 20 per cent.

Jongkon Ratchanakool, managing director of JBP International Paint, said on the occasion of the anniversary celebration that the company had promoted the next generation to manage the business.

His son, Sarawut, will be responsible for marketing affairs, with a new marketing campaign expected in the near future.