JUNGCEYLON BATTLES THE DOWNTURN BLUES

The number of foreigners visiting Jungceylon has dropped by between 10 and 15 per cent since the recent weeklong closure of Bangkok's main airports.

CEO Pravit Janyasithikul yesterday said the company would next year focus on local shoppers - locals and expatriates living in Phuket - in an attempt to avoid a major impact from the global economic difficulties and domestic problems.

"We have revised the proportion of foreign tourists visiting the Jungceylon shopping complex from 70 per cent this year to about 60 per cent next year. Similarly, 60 per cent of our marketing budget next year will be spent on events that are specially targeted at local shoppers," said Pravit.

He added that many on-site activities such as Junior Soccer and the Four Angies Show would be among the highlight events to be created next year targeting local shoppers. Events such as the International Dance Festival will be also held to attract expat shoppers.

He said Jungceylon would invest Bt35 million in on-site activities, down from this year's Bt42 million.

"Our marketing campaigns and events next year will be more focused on specific targets of customers. It will make our marketing expenditure more efficient than this year, when we have spent our money on relatively massive campaigns," said Pravit.

He added that Jungceylon would next year launch a new marketing strategy called 'retail entertainment', set to encourage a new fun and colourful shopping experience for its shoppers.

A major campaign called "Sunshine Smiling at Jungceylon" will run throughout the year, aimed at encouraging shoppers to smile about such things as the complex's prices and service. The campaign has been inspired by the new government's policy of promoting Thailand as a 'smiling country'.

"Our business strategy next year will focus on stimulating people's shopping mood and spending, as well as raising the confidence of our retail tenants," said Pravit.

With the new government, he said, the overall economic situation, including the number of tourists and the confidence of consumers, would improve in the second quarter of next year.

Jungceylon shopping complex attracts between 20,000 and 25,000 visitors a day during the low season. For the high season from November to April, the mall can attract between 35,000 and 40,000 shoppers a day.

Phuket Square expects to achieve more than Bt400 million from the rent of retail space at Jungceylon this year, up 33 per cent over Bt300 million last year.

The company expects to achieve rental income that is 5 to 10 per cent higher next year, due to larger number of tenants opening outlets in the complex.

Jungceylon shopping complex has more than 65,000 square metres of retail space, with over 300 stores giving it a 90-per-cent occupancy rate.