With expectations high for the busiest time of year -- the upcoming festive season -- The Mall Group Co, the operator of The Mall, Emporium, EmQuatier and Siam Paragon Department Store, has increased its marketing budget by 20% to 300 million baht in an effort to spark a shopping spree during the festive period.
Voralak Tulaphorn, the company's chief marketing officer, said the company has seen spending pick up strongly in the country during the second half of this year since the Covid-19 pandemic restrictions were eased, as well as a continuous increase in the number of tourists entering the country. This week's Apec 2022 meetings provide another positive factor.
Sales in several product categories at the group's retail malls such as fashion, gifts and beauty have experienced a substantial improvement.
In addition, the time customers spend on each visit to the group's malls has increased to 1 hour and 15 minutes on average, up from less than one hour during the pandemic.
"With these factors, we believe that active shopping will be back and is to be the busiest time for shopping from late November to December after dull sentiment over the past two years,'' Ms Voralak said, adding that the last three months of the year represent the most significant time for retail businesses because sales during this festive period account for 30% of overall sales.
However, she said the pandemic triggered a drastic shift in consumer behaviour, adding that consumers have started to resume their new normal lives, but they carry out research for additional information to compare prices between those offered by physical stores and those offered by online platforms.
According to Ms Voralak, shoppers have also become less loyal. They generally try out products at physical stores but opt to make their purchases online for better value.
Moreover, they increasingly make their purchases via digital payment platforms.
