Shopping Centres in Bangkok, Thailand

[KatoeyLover69]

Report from The Nation dated Wednesday 8 March 2006 :-

Famous brand: Launch of Barbie bags and cosmetics

The makers of Barbie, the world-famous doll, yesterday announced that it would join Thailand's handbags and cosmetics market with the launch of the Barbie bag and Barbie cosmetic collections.

Barbie bags and cosmetics will be available at 40 department stores and other retail outlets by the end of this year.

Kids & Teens Co Ltd has the exclusive distribution licence for the collections from Mattel Inc of the US. General manager Sherene Thanaphathanawiboon said that the company had set up an advertising budget Bt3 million to promote the product in Thailand.

[KatoeyLover69]

Report from Bangkok Post dated Saturday 11 March 2006 :-

Thai Princess to open fashion boutique

HRH Princess Sirivannavari Nariratana, the youngest daughter of HRH Crown Prince Maha Vajiralongkorn, is planning to open her first fashion store at Siam Paragon. The Sirivannavari boutique will be on the first floor of the luxury shopping mall in central Bangkok.

''It will be opened on Jan 8 next year, which will coincide with my birthday and the brand will have an image of a peacock as its logo,'' the designer princess said at a press conference at the Fashion Trend Center at CentralWorld on Friday.

''The products will be separated into two lines, which will be haute couture and ready-to-wear,'' said the princess, who is a first-year student at the Faculty of Fine and Applied Arts at Chulalongkorn University.

Since deciding to study fashion design, Princess Sirivannavari Nariratana has taken part in a few design events, including Bangkok Fashion Week 2005.

She is currently preparing to introduce her latest autumn/winter collection, created under the ''Fly to Nouveau'' concept, on Tuesday for Bangkok Fashion City 2006 at the fashion dome in Benjakitti Park.

Items from this collection, which was inspired by the 1920s and 30s, together with those from the princess's previous collection, called Viva Victorian 2005, will be available at her boutique.

''After I did the show at Bangkok Fashion Week 2005, many people asked where could they get my designs. This prompted me to open this store,'' she said.

Apart from clothing, the store will carry a wide range of accessories. However, those who do not want to wait until the store opens can purchase the princess's accessory designs from a special booth during Bangkok Fashion Week 2006.

Some of the revenue will go to the ''Art for All'' project established by the Faculty of Fine and Applied Art, which encourages the use of art as therapy for people with disabilities, including autism.

[KatoeyLover69]

Report from The Nation dated Wednesday 15 March 2006 :-

Plenty to play with at new store

Learning Curve Toys Co Ltd yesterday announced the opening of its flagship retail store in Bangkok and plans to open franchise outlets in other parts of the country.

Located on Sukhumvit Soi 24 and covering 50 square metres of space, the new flagship store will sell a full line-up of educational toys under brands such as Lamaze Infant Development System, Thomas Wooden Railway System, and Bob the Builder.

Over the next two to three months it hopes to franchise its speciality toy store outlets in major cities and tourist destinations including Chiang Mai, Phuket, Koh Samui and Khon Kaen. It will also open a Learning Curve Toys outlet in Vietnam in the middle of next year to capture the fastest growing market in Southeast Asia.

"We are negotiating with Bumrungrat Hospital to open a second stand-alone toy shop at the hospital," said Susan Wu, marketing director of Learning Curve Toys Co Ltd.

Wu said that Learning Curve Toys started selling its products in the King Power duty free shop at Don Muang Airport at the end of last year. The company will expand its outlets through the King Power's retail network, both at its Rang Nam outlet as well as at Suvarnabhumi Airport, which is scheduled to open this year.

The company hopes to play in the domestic toy market which is expected to grow 20 per cent per annum over the next decade. Industry experts point to the increasing purchasing power of Thai parents for the expected increases. Domestic demand for wooden toys is also growing at 15-20 per cent a year.

Wu said the toy industry was valued at Bt3 billion last year, of which imported speciality premium educational products accounted for 30 per cent.

The new outlet contains over 2,000 educational toys.

As the only licensed distributor in the country for Lamaze and Thomas & Friends, Learning Curve Toys yesterday introduced its third imported educational toy brand Bob the Builder. The Bob the Builder collection will engage even the youngest children in constructive play, she said.

"At Learning Curve Toys we understand that the first years of a child's life are crucial. That is why we only provide quality, classic toys and products that are internationally-recognised and endorsed by child-development experts," she said.

"We provide educational props that enhance the value of play. It is well-documented that interactive and imaginative play is integral to a child's development - it helps them make sense of the world and aids their cognitive growth and gross motor skills," she said.

Learning Curve Toys sells toys that cater to children from infancy to age eight, the fundamental learning curve period of their lives, she said.

"We also plan to diversify our merchandise to natural and organic healthcare and spa products, as well as nutrition and food supplements, to serve both children and parents," said Wu.


Kwanchai Rungfapaisarn
The Nation

[KatoeyLover69]

Report from The Nation dated Wednesday 15 March 2006 :-

Dr Marten's tunes into the young set

British shoe manufacturer Dr Marten's plans to apply music marketing this year as it seeks to capture a younger segment of the market.

So far, the thick-soled shoes have mostly attracted men aged 26 and over.

Charnchant Krisadawat, marketing manager of OTT Footwear Co Ltd - Dr Marten's authorised representative in Thailand - said that since it officially entered the Thai market last September the brand had received a good response from Thai consumers although sales to the key 18-25-year-old segment had not met expectations. The company is hoping sales to this segment will account for 30 per cent of sales this year. To draw interest from younger buyers, the company will apply music marketing. Its first activity under the strategy is "Lek Chin Sod: Flure Spective", a concert by the band Flure sponsored by Dr Martens, which will be held on April 1. Every buyer of a pair of Dr Marten's shoes will be awarded two tickets to the concert. The campaign is being organised in partnership with Fat Radio.

Charnchant said that if the campaign proves to be success, the company will organise more concerts with other radio stations to capture various groups of teenagers.

Apart from the concert, the company has opened a 1460 Booth Shop at Centre Point in Siam Square to give it exposure to more teenage buyers.

Dr Marten's has been widely known among Thai consumers for over a decade as independent traders bought in bulk to retail the shoes here. OTT Footwear became the authorised representative in September.

Shoe prices range from Bt3,900 to Bt4,500.

The brand has three product lines: Casual, Classic Style and Smart Working.

Dr Marten's are currently sold at seven branches of the Central Department Stores: Central Chidlom, Lardprao, Bangna, Pinklao, Rama III, Phuket, and Zen.

This year, the company plans to open another five retail points at Siam Paragon, The Emporium, The Mall Bangkapi, Central Airport Chiang Mai, and Isetan. It also hopes to open an 80-square meter store at Siam Discovery within this year, which will require a Bt3 million to Bt4 million investment.

Another marketing campaign running from yesterday to the end of March is "Dr Marten's: Free Style in Style" selling shoes designed by Thai celebrities. Revenue gained from the sale of those shoes will be presented to the Chaipattana Foundation.

With all its marketing efforts, the company expects to sell more than 10,000 pairs of shoes worth Bt45 million. Last year, the company sold 3,000 pairs worth Bt12 million to 13 million.


Nitida Asawanipont
The Nation

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Report from Bangkok Post dated Monday 20 March 2006 :-

Proposed new shopping centre in Pattaya

'Mr Hippy' plans a Las Vegas-style shopping centre with everything to offer in North Pattaya

Veteran Thai boxing promoter Banchong Busarakamwong, known to many as "Mr Hippy", plans to spend over 500 million baht building a Las Vegas-style shopping arcade in North Pattaya.

The move comes after the successful launch of a huge sports club and resort in the popular tourist town.

Mr Banchong, the chairman and founder of Fairtex Sportclub & Resort Co, said the group had rented an eight-rai plot in North Pattaya for the project, next to its Fairtex Muay Thai sports club, which opened last month.

Half the space will be a shopping arcade and half will be a five-star condominium with room for expanding sports facilities.

Building of the low-rise retail outlet is expected to begin early next year and finish within the next two years.

"We will apply the atmosphere of shopping arcades in Las Vegas to our own complex to fulfil our services and make our sports club and resort more attractive," said Mr Banchong.

About 20% of the anchor and service providers at Fairtex Shopping Arcade would be different from the others in Pattaya, he said.

Although Mr Banchong earlier lost several hundred million baht when he went into partnership to develop Somprasong Plaza in Pattaya, he said he was still fascinated by the beachside location.

"What boxing has taught us about daring and courage has eventually become a method in running our business," he said.

The 250-million-baht Fairtex Sports Club and Resort, opened at the end of last month, was built on eight rai in North Pattaya, near the bus terminal.

It houses restaurants and several outdoor and indoor sport facilities, including: badminton, basketball and squash courts; a fitness centre; swimming pool; boxing rings; and a rock-climbing wall; as well as a five-star hotel with 60 rooms, a 50-room dormitory building and parking for 100 cars.

"Pattaya has lots of opportunities. People have high purchasing power but there are no sports clubs available. So, Fairtex was built to serve the demand of people who are looking for activities in the daytime," he said.

The new sports club and resort targets A-group customers and aims for a ratio of 60% foreigners with the balance Thais. The foreign group is larger than Thais because Pattaya is home to thousands of expats from Europe, Japan, North America, Australia and Korea.

The minimum membership package costs 35,000 baht, and there are 500 members already. The company aims to have 1,000 members by the end of the year, when it expects sales to reach 100 million baht.

The company plans to serve 2,000 members and expects to see a return on investment within three to four years.

In the long term, Mr Banchong said the company planned to open at least 10 Fairtex facilities in Thailand.

Fairtex operates four Muay Thai camps in Japan and two in the United States. It plans to increase these to 20 in Japan and 10 in the US in the near future.

Locally, Fairtex has one Muay Thai camp with a gym in Bang Phli and now another in Pattaya.

Mr Banchong said Muay Thai was very popular around the world. People from the US, Japan, and Europe, all wanted to practise Thai boxing, not only to train or coach, but to protect themselves.

There are more than 10 companies in Hong Kong, Taiwan and Australia that want to go into joint ventures with the firm or franchise camps in their countries.

Mr Banchong said recognition of the Fairtex brand overseas had been very good thanks to support from Tata Young, a Thai singer who has a close relationship with his youngest son, Prem.

The company also has its own factory producing Muay Thai equipment.

[KatoeyLover69]

Report from Bangkok Post dated Tuesday 21 March 2006 :-

China beckons for Central Retail : Asian expansion picks up pace for top chain

Central Retail Corp, one of the country's largest retailers, is considering expanding into China even though its attempts to expand into Southeast Asia have yet to bear fruit.

"Department stores are where we have an opportunity to expand in such a massive market. We believe that Asian department store operators can do better than Western ones [in China]," said Tos Chirathivat, the CRC chief executive officer.

He said that CRC had successfully competed in the local market against Japanese retailers, considered to be among the best retail operators in the Chinese market.

Mr Tos said the company was studying the feasibility of establishing a retail presence in China in 10 cities, including Beijing, Nanjing, Guangzhou and Shanghai. The results could be known in two or three months.

The investment would be around one billion baht per location, with the company possibly leasing space from existing outlets or developing its own centres.

Finance would come from existing cash flow, with 10 billion baht already in hand for growth. CRC would consider a listing on the Stock Exchange of Thailand to finance overseas investments if needed.

"We consider China as an important market because the Chinese economy will overtake the US to become the world's biggest within the next 20 to 30 years," Mr Tos said.

"We believe that whoever can become number one in China will become number one in the world too."

CRC was recently named the top retailer out of 14 countries in the Asia Pacific by Retail Asia magazine and Euromonitor, a European consultancy. Criteria examined in the survey included customer service, merchandise, store operations, marketing communications and technology.

The new Chinese expansion strategy comes two years after Central announced plans to expand throughout Southeast Asia.

Negotiations between CRC and four separate Asean partners have collapsed, but a successful overseas deal was announced last week when CRC purchased a 39.1% stake in Singapore-based Page One Holdings, a bookstore operator.

Mr Tos said CRC was also negotiating two other deals worth around one billion baht that were expected to be finalised by the end of the year when it would also decide whether to pursue a venture in Vietnam.

To support its overseas expansion drive, CRC plans to launch a Central Retail Academy to train staff.

Meanwhile, CRC has budgeted 5.3 billion baht to expand and renovate its operations in Thailand, an 85% increase from 2005.

Plans include opening a new Central Food Hall at CentralWorld and launching a new Tops supermarket format called Tops Daily. It also plans to launch its 20th Robinson department store at Ayudhya Park later this year.

Also, Zen, located at CentralWorld, will close on Sunday for renovations and reopen by the end of the year.

Other speciality stores operated by CRC include B2S bookstores, Office Depot, HomeWorks, Supersports and Power Buy.

CRC projected its total outlets nationwide would grow to 400 by the end of the year from 357 at the end of 2005, despite the downturn in the economy.

"Political uncertainties will not have a significant impact on the retail sector if investors maintain their investment and consumers continue spending," Mr Tos explained.

But a protracted dispute could affect consumer confidence and ultimately CRC sales, he added.CRC projects 78 billion baht in sales this year, up 12% from 70 billion last year.

Gains would come from the positive performance of Tops, which generated an extra 500 million baht profit in 2005 for the firm. It was the first sign of a turnaround in the business after CRC took over the chain from NV Ahold.

Meanwhile, Central Plaza Hotel, another listed company under the Central Group, yesterday announced a 2005 dividend of 1.25 baht per share, payable on May 23.

[KatoeyLover69]

Report from The Nation dated Friday 24 March 2006 :-

Tops goes for rebranding, makeover

Central Food Retail Co Ltd (CFR), Central Group's supermarket operation, plans to spend Bt800 million renovating and rebranding its supermarkets this year.

The company will rename its three supermarket brands from Tops Supermarket, Market Place, and City Market to Tops Super, Tops Market and Central Food Hall respectively, said Ian Pye, president.

Tops Super will target middle-class customers, Tops Market high-end customers and Central Food Hall the creme de la creme. The makeover of its stores will be completed in 2009.

The company also will launch a new convenience store, Tops Daily, which will have between 300sqm and 500sqm of retail space and will target the middle-class.

Unlike Tesco Express and Seven-11 Tops Daily will sell fresh food.

Pye said that the company planned to open five Tops Daily branches this year and a further 15 in 2007.

The first Tops Daily branch will be located in Angthong province.

The company also plans to open 10 other stores under the Tops Market, Tops Super and Central Food Hall brands during the course of this year.

The company has 88 stores, including 75 Tops Supermarkets, one City Market at Central Chidlom and 12 Market Places.

The company also will open a second Central Food Hall in Central World Plaza this August at a cost of Bt350 million.

After it completes the makeover of its stores, the company expects its sales to double to Bt30 billion in 2010 from an estimated Bt15 billion last year.

The company reported a profit before interest and tax of Bt500 million last year, its first year in the black since 2000, Pye said.


Somluck Srimalee
The Nation

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Report from The Nation dated Wednesday 29 March 2006 :-

Political paradox at Siam Paragon

Shoppers who visit Siam Paragon are often amazed at the stupendous size of the place. It can take a visitor all day or more to stroll through all far-flung corners of the luxury mall.

Though not the only shopping palace in Bangkok that flogs foreign brand-name products, Siam Paragon is the biggest, touting every chic shop from Mikimoto to Hermes. The mall's temperature is always cool, the ceilings tall, the bathrooms spacious and clean - all to match the champagne taste of its customers.

Alas, these fascinating scenes will vanish when anti-Thaksin protesters arrive to camp out in front of Siam Paragon this afternoon.

All three malls that line the left side of the bustling shopping boulevard - including Siam Centre and Siam Discovery Centre - have decided to close down today and tomorrow to avoid the headache.

It is quite a good decision as chaos spurred by rally could be unpredictable. What if people walk in and out of the mall to use the fancy toilets or break into Mikimoto and snap up a pricey pearl necklace? Nobody would be clearly held responsible - just as in the case on Sunday of a car owner whose vehicle was scratched by a protester's flagstick. Who's to blame?

The People's Alliance for Democracy is not going to the swank Siam Paragon area to shop but to woo middle-class dissidents. So closing the mall poses no trouble. There's still the worry about restrooms for the huge number of protesters, but the Bangkok Metropolitan Administration should stand ready to supply mobile toilets, as always.

[KatoeyLover69]

Report from Bangkok Post dated Friday 7 April 2006 :-

Boots Thailand plans to open 40 new stores

Boots, a British retailer of health and personal-care products, plans to open 20 new outlets in Thailand this fiscal year, starting this month and ending in March 2007. Another 20 stores or more would open over the company's next fiscal year, according to Ian Hunter, new managing director of Boots Retail (Thailand) Ltd, a subsidiary of Boots in the UK.

''Our parent firm has continuously invested and expanded business in Thailand because it is the biggest market for Boots International,'' Mr Hunter said.

He said that if the business plan could be achieved, the total number of Boots outlets in the Thai market would reach 138, up from the 98 recorded for the 2005 fiscal year that ended in March 2006.

Most of the new outlets will be in Bangkok, with products aimed at women over age 25.

The company projected that investment per store would be between three million and five million baht for outlets with retail space of between 70 and 100 square metres.

The company has opened six new stores since January: four in Bangkok and one each in Koh Samui and Hua Hin. It will open its 100th outlet at the Q House Building Lumpini in May.

Apart from outlet expansion, Boots' parent firm plans to support its Thai operation with an IT system and new Boots brands. By the end of 2006, more than 400 items will have been introduced to Boots shops.

As Thai people are becoming more concerned about their health, the company sees huge market potential for its personal and health-care products in the Kingdom.

Mr Hunter has three years' marketing experience with Boots International and plans to implement company best practices in Thailand. He aims to get more people to visit Boots outlets and increase their shopping frequency each month.

According to a survey conducted by a market research firm, customers visited Boots once a month to buy products.

Recently, the company launched a 10-million-baht health campaign titled ''Change Just 1 Thing'', aimed at reinforcing its position as a personal health-care and beauty specialist. It was also expected to generate double-digit growth in health-care sales for 2006.

''We expect the campaign to encourage higher health awareness among Thai people and to respond to rising demand from health-conscious people,'' said Mr Hunter.

The company also aims to lift recognition of the Boots brand in terms of quality at good prices. If people think about health care, it wants Boots to be at the top of their mind.

A free 24-hour pharmacy hotline is part of the initiative.

[KatoeyLover69]

Report from The Nation dated Friday 7 April 2006 :-

Toys 'R' Us has big Asian ambitions

After it opens a 2,300-square metre Toys "R" Us store at Central World Plaza this summer, Toys Retailing (Thailand) plans to open at least two more branches in Bangkok before 2007.

That would bring to five the number of stores the company operates in Thailand.

However that is but a small part of the company's plans. The company aims to have more than 50 stores in operation in Asia, not including Japan, by the end of next year. The next store will open in the Philippines in two months.

Li and Fung (Retailing) owns Toys Retailing and the licence to operate Toys "R" Us stores in Asia except in Japan. The company currently operates 36 Toys "R" Us stores in Hong Kong, Taiwan, Malaysia and Singapore. Thailand is the fifth country in the region to receive one of the giant toy shops.

Manit Lertsakornsiri, country manager of Toys Retailing (Thailand), said the company expected to achieve sales of between Bt300 million and Bt400 million this year.

It opened the first local outlet, a 2,000-square metre store, on the sixth floor of Central City Bang Na shopping complex last December, followed by the 1,100-square metre store at Carrefour on Rama IV.

"We had a good welcome from Thai shoppers and expatriates, especially during the school holidays. Each store is attracting thousands of shoppers a day. Both branches are expected to break even within two years," said Manit.

Opening stores in Bangkok costs between Bt40 million and Bt50 million each.

Manit said that its retail partners, Central and Carrefour, had offered space in their shopping complexes in north and western Bangkok.


Kwanchai Rungfapaisarn
The Nation

[KatoeyLover69]

Report from The Nation dated Saturday 15 April 2006 :-

Hypermarkets scale down, go upcountry

A new battle between the hypermarket chains is under way - not in the capital, but upcountry.

Tesco Lotus, Carrefour and Big C have all modified their store formats to meet local regulations, smaller communities and different consumers' requirements, and they are spreading into the provinces.

The first player, Tesco Lotus, has spent the past two years diversifying its retail formats to serve different locations and shoppers' demands.

It began by launching its Tesco Lotus Express stores, about the size of convenience stores. The first Express stores were located at petrol stations, but the company has since expanded to shop-house locations.

The company has opened 135 Express outlets so far, and plans to open another 100 this year.

Another of Tesco Lotus's new retail formats - "Talad Lotus" - is still on trial. It was developed to serve smaller communities both in Bangkok and upcountry.

The new stores offer a full range of both fresh food and dry grocery items at Tesco lotus hypermarket prices.

Stores in the trial programme have opened at Maha Sarakham, Pinklao and Chinatown and an existing Tesco Lotus supermarket at Phongphet will be converted to a Talad Lotus store by July.

"We are very excited about this new Talad Lotus concept," said Tesco Lotus chief executive Jeff Adams.

"Customers told us they wanted a more conveniently located food store with a full range of food products. We will keep the same low prices as our hypermarkets."

Talad Lotus stores will vary between 700 and 1,500 square metres in size, and will carry a range of 6,000 to 9,000 fresh food, dry grocery, and daily household items.

Adams said Tesco Lotus had also successfully introduced a new compact format called "Khum Kha" stores in upcountry communities. About 14 Khum Kha stores have been opened so far.

In addition, Tesco Lotus has 55 standard-format hypermarkets in major cities throughout the country.

The French hypermarket chain Carrefour recently announced a new smaller-store format to help the company speed up its up-country presence. Carrefour currently has 23 hypermarkets.

Most of them are in Bangkok, but the most recently opened are in Hat Yai and Chachoengsao.

Carrefour Thailand managing director Luc Dayot said the company wanted to open smaller hypermarket stores, with retail space of between 4,000 and 6,000sqm, particularly upcountry.

The smaller format will comply with local retail zoning regulations in the provinces, which prohibit the opening of large-scale complexes.

"We plan to open three or four smaller stores this year at Chon Buri, Phuket and Chiang Mai," Dayot said, adding that the smaller outlets will take about six months to build, compared to between eight and 12 months for conventional hypermarkets.

"The new smaller stores will serve communities with fewer than 50,000 households," he said.

"Our hypermarkets serve communities of not fewer than 150,000 households."

Dayot said the investment required for a smaller outlet was about Bt300 million, compared to Bt1 billion for a 10,000-sqm hypermarket.

Big C Supercentre will invest Bt2 billion to open four new outlets this year. Two of them will be of a compact size.

New Big C stores will open in Phrae and Ratchaburi in the middle of the year and two more, also upcountry, by the end of the year.

The Phrae store will be a compact model with retail space of 5,800sqm, while Ratchaburi will follow a standard format with 9,000 to 10,000sqm.

Big C operates 45 hypermarkets across the country.

Twenty-four of them are in Bangkok.

[KatoeyLover69]

Report from Bangkok Post dated Sunday 16 April 2006 :-

On the bread line:
What's so special about a simple bun that makes people queue for hours?

On a corner of Siam Square, a couple of guys wandering around with bakery bags are trying to sell freshly-baked buns for 30 to 35 baht. Their daily routine might not seem unusual if you don't know that just around the block, some 60 people were queueing for the same type of bread - a plain-looking yet very aromatic and scrumptious creation which the entrepreneur who brought it to popular success refers to it as "god given".

To put it simply, those street sellers are part of the black market, buying the buns from the shop and re-sellling them at 10 to 15 baht higher. The customers willing to stand in line for hours are either die-hard bread fans, or serious trend-catchers. And the man who started this bakery shop known as Rotiboy Bakeshoppe is a Malaysian economics lecturer-turned-baker and franchise master who is now looking at 100 percent business growth each month. He, and his copycats, have brought to the city a three-month-old phenomenon that revolves around little more than a rotund bun.

"The demand that we are looking at is way above what we can produce in one outlet," says Rotiboy's founder, Hiro Tan. "If we are talking about the queue relative to whether or not there is a queue, let's put it this way: even when we sold 10,000 buns per day, the queue was still long. It's the capacity of the oven that causes the waiting. We have no intention to let people wait that long. Our main objective all the time is no queue. We want our customers to come and get hot buns and go, but because the demand is so great these queues become normal."

The Rotiboy master insists that he would do anything to shorten the queues. In the past, when each outlet only had two ovens, they produced 720 buns an hour and the longest time customers have ever waited was two and a half hours. But the company has just added another oven at the Siam Square branch so they are able to produce 1,400 buns every hour with the expectation that the queue at the Siam outlet will come down.

"People think no queue means no business, which is not true. It depends on how efficient you are. If you have a very small oven, a queue doesn't meant you have a lot of business - it really depends. The capacity of the oven is very important. Even now at our new branch in Central Lat Phrao we have no queue but we are still selling well. Why? Because if people see no queue they will come and buy and in that sense the selling will still be ongoing and that's what we want," he said.

For many office workers in and around the Siam Square and Silom areas where the first two Rotiboy outlets are located, it has become the norm to hire messengers to queue for the buns - colleagues share the expenses as well as the buns. At one insurance company, the Rotiboy bun has become a marketing tool: the firm gives the buns to customers to express their thanks.

Following Rotiboy's fortune, several brands have been established simply to offer the same kind of bun: the warm and fragrant coffee-cream coated bun with buttery filling. Taking Bangkok by storm are Mr Bun, Baker's Boy, Coffee Dome and Papa Roti. Of course, they all have long queues, too.

According to Vilawan Limprana, PR and outlet planning director of Coffee Dome, the only Thai-owned company to jump on the bandwagon in February this year, the success was far beyond the company's expection. Each outlet of Coffee Dome sells around 3,000 buns a day. And Vilawan insists that they've never wanted customers to wait for long. "We are not creating the marketing strategy with a pause in the selling," she said. "We have even come up with a new service system: customers can order and pay in advance and come back with the receipt to pick up their orders within 10 minutes."

With outlets in Carrefour Rama 4 and The Mall Bang Khae, the company plans to open eight more outlets within the next four months to create a total of 20 by the end of the year.

Coffee Dome is not the only brand that has plans for a great expansion. With four existing outlets at various branches of The Mall, the Malaysian brand Baker's Boy, which arrived in Bangkok three months ago, is set to launch 20 more shops in Thailand before the end of 2006. Meanwhile the Bangkok-based, Singaporean-own Mr Bun is looking at as many as 50 outlets within the year.

Mr Bun is another interesting brand to be noted. It was the first shop to introduce the so-called Mexican bun to Thailand last year. Besides the classic coffee bun, there are also strawberry and coconut flavours available. The size of the buns are smaller compared to the typical "rotiboy" bun and the price is 10 baht per piece. Right now there are 13 branches dotting Bangkok's outskirts and even at branches in a lower-end mall like Zeer Rangsit, queues of 20 to 30 people are usual. While at more busy outlets like at Central Rama 3 and Seacon Square, it is normal for customers to wait for an hour on a weekend when the shops each sell more than 10,000 buns a day.

So what is so special about the bun?

Each Rotiboy Bakeshoppe sells approximately 10,000 buns each day and the longest time people have ever queued for the buns was two and a half hours.

"It's the whole combination: the taste is exceptional, the aroma is great and the price is reasonable," said Rotiboy's Tan. "The generic name for the bun is Mexican bun and I'm not the one who created it. The recipe was already there. It's a common recipe that you can get from cookbooks or the internet. It's not Western, I believe it's Oriental bread. My sister once made this bun for her employer a long time ago. Then I took it and simply modified it a little. We are the first one to sell it that way."

Tan firmly believes that there will never be another bun like this. "This is god given - the only one of its kind. We are not even confident of making another bun that suits people's sense like this one. It is something special that comes once in a long while. No bun can create such a response from people, not even 50 percent of this, whether in Malaysia, Singapore or Indonesia. The response has been tremendous."

Tan said at the end of this year, he is looking at 300 to 350 million baht turnover with six to seven more outlets to be opened by the end of June - at Ramkhamhaeng (adjacent to Big C), Central World Plaza, Victory Monument, Bang Kapi (near Tawanna), MBK and Kasetsart University. And at the MBK outlet, 15 extra items will be featured and Tan's most recommended are Oriental pizza, garlic bread and cream roll.

And tips for those who need to keep the Rotiboy buns overnight?

"Generally we don't encourage people to buy a lot and keep them over too many days. If it's necessary you can store the bun in its bag in the freezer - not the chiller compartment. The next day put it in the oven at about 150 degrees for a couple of minutes. This product is best when it's warm."

From today until April 16, Rotiboy fans might be suffering, not from the heat, but from craving, because the Silom and in Siam Square outlets will be closed for a few days so that staff can go home for Songkran. But there's still be some good news: the Central Lat Phrao branch will still operate during the festival. Meanwhile, the Silom branch customers can call to place their orders in advance, and they are planning to offer a delivery service in the near future.

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[KatoeyLover69]

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Report from Bangkok Post dated Sunday 16 April 2006 :-


IS IT WORTH THE WAIT?

- Montrinee Trichatchawanwong, 21, university student

"I kind of like it but not that much. But more importantly, having tried the [Rotiboy] bun made me feel like I'm in the trend whenever people ask if I've tried it yet."

- Suttipong Jarulnamsiri, 27, office worker

"The first time I saw the long queue I didn't know exactly what the bun was like but I decided to get in the line anyway because the aroma was so tempting that I really wanted to give it a try. Yes, it was absolutely worth the 40-minute wait. The second time I decided to be at the shop 10 minutes before it opened but there were people queueing already, and it took around 20 minutes for me to get the buns. Even though I only want a couple of buns, I always buy 10 pieces just to make the wait more worthwhile."

- Hatairat Saengwattana, 34, business owner

"Someone bought the buns for me and I admit that they were delicious even after I kept them overnight and reheated them. But am I patient enough to stand in line for hours for just bread? Absolutely not."

- Tanuntiya Thidhaphan, 36, housewife

"When I first saw the queue I thought those people were trying to apply for a visa. But when I learnt that it was a bread shop they were lining for, I felt that the owners of the shop must have done something really really good in their previous lives and god has now rewarded them with such a successful business."

- Nipaphan Singhabandhu, 37, university lecturer

"Yes I have tried the bun and I enjoyed it. But, personally, I would feel too embarrased to queue for a bun. It seems like a craze. Management wise, doesn't a long queue mean a failing operation system?"

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HUMBLE BEGINNINGS

The Rotiboy Bakeshoppe opened in Penang, Malaysia in 1998 selling a variety of breads and cakes. In 2002, with more outlets opening, it experienced a phenomenal growth in the sales of its Mexican bun, which was later been renamed the Rotiboy bun. Within a couple of years, and with the opening of more branches in Malaysia, Singapore and

Indonesia that only sell this unique bun, several copycat shops sprung up to tap into this highly lucrative market.

[KatoeyLover69]

Report from Bangkok Post dated Thursday 20 April 2006 :-

TAKING THE STING OUT OF HIDE : Labrador Factory stands out with its high quality leather, unique designs, and unusual affordability

Anek Kulthaveesup and his friend Supreeya Udonchai had no idea that one day they would be able to turn their passions into a flourishing venture.

But two years ago, Labrador Factory emerged as a manufacturer of leather stationery and furniture. What makes this company different is its unique design and the high quality of its leather.

Mr Anek, a 29-year-old interior designer who has expanded his skills into furniture and stationery, said the company was based on the firm belief that following one's passions in life would eventually lead to job satisfaction and success in business.

The designer said he had come across several pieces of stylish leather stationery in art-supply stores overseas. However, he didn't buy them because the prices were so unreasonably high.

''So now we're making what we once couldn't afford, but at affordable prices. We know what consumers want, since we once were consumers too,'' said Ms Supreeya.

Currently the pair produce more than 30 leather items, including business-card holders, notebooks, CD organisers, document folders, vases and beanbags - prices range from 300 to 1,200 baht.

''The prices are two to three times cheaper than for imported products,'' she said.

The company's products are currently sold in various department stores such as Central, The Loft, Propaganda, and stylish shops in the Siam Center and Siam Paragon.

Initially, the company did not own a factory but produced goods under sub-contract agreements. However, difficulties in quality control and production delays led the founders to open a three-million-baht factory in Nonthaburi.

An engineer graduate from Kasetsart University, Ms Supreeya took control of the factory and production processes, leaving Mr Anek more involved in product design.

After a shaky start, the company has seen sharp growth in revenue of between 200% and 300% over the past two years. It expects similar figures this year.

Its core market is still domestic, representing 95% of total sales, leaving 5% for export, mainly to Singapore, Japan, France and Holland.

The Labrador Factory stakes its claim on its products' unique quality, design focus and services. Delivery is usually punctual and retail customers are guaranteed that if the products are found to be damaged they can be returned and changed within three months.

The company has focused on building its own brand over original equipment manufacturing (OEM). Sometimes it produces premium products tailored to customers' needs.

''The key reason is that we don't want to confuse our end customers over who is actually the owner of the designs, which can easily be mixed-up when an OEM is involved,'' Ms Supreeya explained.

For the export market, however, it relaxes the rules and takes OEM orders, but only from customers who come up with their own designs.

''We're very serious and cautious about brand building and image,'' Ms Supreeya said.

Due to its emphasis on brand building, the company's long-term goal is to build up local customers' awareness of Labrador. Customers are 40-year olds and under at the medium to high end.

The company plans to achieve this with a distribution strategy of only selling its products in stylish shops that fit the product's image, through brand positioning and advertising through magazines.

It also plans to continue making itself known at exhibitions and fairs, such as the Bangkok International Gift Fair (BIG).

In terms of short-term expansion, it plans to continue to increase its variety of product lines every six months.

The founders believe their early success has allowed the small company to manoeuvre flexibly and keep control over its production and quality, as well as maintaining direct contact with the customers.

[KatoeyLover69]

Report from Bangkok Post dated Wednesday 26 April 2006 :-

Diana cuts losses with majority sale : 75% stake goes to technology investor

After struggling for a decade, the major shareholders of SET-listed Diana Department Store Plc, led by Netr Chantrasmi, have decided to sell their 75.38% stake to Jrarat Pingclasai, an investor in technology businesses, for 40 million baht. Mr Netr and his group, composed of Thayanee Co Ltd, Phithan Panich Co Ltd, the Chantrasmi family, Pithanpanich Co, Thayanee Co and minor shareholders, agreed to sell the 9.8 million shares.

The news sent Diana shares up 30% yesterday on the Stock Exchange of Thailand. They closed at 5.20 baht, up 1.20 baht, in trade worth 23,700 baht.

Mr Netr, managing director of Diana Department Store, said the group made the decision because it would help the company to clear its 200-million-baht accumulated loss and pay off debts.

''If I do nothing, it will take 20 years to clear off the accumulated debt of 200 million, which has existed since listing on the Stock Exchange of Thailand. Moreover, the firm will be able to reduce its financial burden,'' he said.

He said the loss came from an influx of foreign retail chains to Hat Yai, fuelling market competition. However, he said he had not given up on the business.

He said Chinese products had been introduced to the garment and accessory segments as the profit margin was three times higher than on Thai-made products.

After a year-long experimental period, the store received a positive response from customers, as Chinese products matched local customer purchasing power.

In 2005, Diana posted a 13.64-million-baht loss on total sales of 574.88 million.

Mr Jrarat, a former executive of M Group and CEO of the technology company IEC, said he was interested in buying Diana shares because the business had good cash flow of up to 400 million baht a year. In the future, he said, he would become the company CEO and diversify business.

Mr Jrarat is also considering the purchase of a number of other companies similar to Diana in the near future.

The share sale includes conditions that the assets and liabilities of Diana Department Store will be transferred to a subsidiary, Diana Convenience Store, and Mr Netr will still run Diana Department Store.

The transaction is expected to be completed in June if the company's board of directors and the shareholders agree to the sale at the book value as of March 31 2006. Business operating permits will also be transferred to Diana Convenience Store.

The shareholders will meet on May 29 to approve the transaction.