Central Group worried consumer spending remains flat in Thailand

[webfact]

Central Group worried consumer spending remains flat in Thailand
BY LARRY BANKS


Image © Nikkei Asian Review. Central Group’s Tos Chirathivat (photo by Yumi Kotani).

BANGKOK: -- As the retail giant Central Group is suffering from a sluggish economy in Thailand, its owners, the Chirathiwat family, expressed worry that premium customers are spending overseas instead of at home.

Chief Executive Tos Chirathiwat told reporters in Bangkok that “The upper class group is still spending money. The problem is that they are spending outside of Thailand”.

In 2015, around 7 million Thais travelled abroad, an increase of 9 percent. Tos said these travellers spend around 170 billion baht ($4.76 billion) on their trips.

Full story: https://ethailand.com/business-news/central-group-flat-consumer-spending-thailand/1661/

-- eThailand 2016-03-03

[craigt3365]

Why spend your money here when you can get the same things in Hong Kong much cheaper??? The savings pays for your flight!

[ChidlomDweller]

Other than price (which to some extent is driven by import taxes, but not all) service at Central sucks. Who enjoys shopping with sales agents sticking to you like glue while staring at you like a lovelorn teenager? I do as much of my shopping in Europe as I can.

[craigt3365]

Other than price (which to some extent is driven by import taxes, but not all, service at Central sucks. Who enjoys shopping with sales agents sticking to you like glue while staring at you like a lovelorn teenager? I do as much of my shopping in Europe as I can.

It is a strange business model. Have outside vendors sell items who are just renting space. Price is terrible as is the selection and availability of sizes.

[dageurreotype]

The only good thing about Central is the TOPS food hall which is much better value and has more selection than overpriced Villa. Oh, and one measly B2S Bookstore (well, who actually reads here, right?). The rest is overpriced and terrible value for money.

[SoFarAndNear]

It is true. When I arrived in Thailand I used to shop there but if you just compare a little bit then you will quickly find out that almost everything costs more. And it is super annoying to be followed by their employees same as Home Pro...

[trogers]

These people are just landlords of commercial space. After bidding up a very high price for that embassy land near Pleonchit, they are lamenting...

[SoilSpoil]

Central? Isn't that the place where I check out branded goods and then buy them on my trips to Europe? Quality toys for my kids are about twice as expensive here as in Germany.

[selftaopath]

Many X pats are strongly repulsed by dual pricing. On principal some X pats will forgo an item rather than pay a much higher price than the apparent market value. I would not be surprised to see a drastic increase of online purchases.

Also worth noting is the scam, poor or nonexistent return policies, difficulty finding replacement parts etc. The "customer" in this country is not looked upon as in most Western countries.

[shirtless]

Maybe the changes in TATs demographic market is impacting on retail spending., Also Thailands economy is in bad shape and does not look like improving any time soon.

[JAG]

Must be a bastard, not being sure where your next 10 million is coming from!

Thank goodness I don't have that worry!

[KIWIBATCH]

Central shopping...summed up in a few words....overpriced (cheaper overseas for the same item).....staff that follow you around the shop (stuck to you like glue)....items on display NOT price tagged (the famous dual pricing trap)...staff sitting on their bums playing on their phones...and the list goes on

[trainman34014]

Better off Thai's are voting with their feet. However; i'm sure when the Big Pumpkin reads this he will be calling in all Thai's who spend abroad for 'attitude adjustment' !

[Srikcir]

Consumer confidence index rose for the third straight month in December 2015, the third straight month increase and the highest in the past seven months.

Then the House that Prayut built began tumbling down - Thai consumer confidence index fell for the first time in four months to 75.5 in January, compared with 76.1 in December.

[Redline]

Get used to it! Malaysia, Vietnam, Cambodia, Myanmar....are all adapting to world trends in education, commerce, technology....

Without the will to change, and proper guidance, (yes by foreigners, or aliens) Thailand is doomed to fall into the hub of obscurity.

[chiang mai]

Get used to it! Malaysia, Vietnam, Cambodia, Myanmar....are all adapting to world trends in education, commerce, technology....

Without the will to change, and proper guidance, (yes by foreigners, or aliens) Thailand is doomed to fall into the hub of obscurity.

"Get used to it! Malaysia, Vietnam, Cambodia, Myanmar....are all adapting to world trends in education, commerce, technology....".

For example?

[onni4me]

So he is basicly saying that people should spend in his shop instead of going abroad for shopping?

I suggest he makes his product a bargain with good service and possible replacement of damaged item?

No?

Okay, I will still keep looking elsewhere.

BTW, I am very familiar with the retail space pricing for some reasons and Central shopping centers are VERY expensive. They are more expensive than some rather nice retail rentals in Europe...that says it all, doesn't it? And to add that they hike the rent every year adds the insult to injury.

If I want brand goods I buy them from where I get them cheapest and that is not Thailand.

[ratcatcher]

Other than price (which to some extent is driven by import taxes, but not all) service at Central sucks. Who enjoys shopping with sales agents sticking to you like glue while staring at you like a lovelorn teenager? I do as much of my shopping in Europe as I can.

"Who enjoys shopping with sales agents sticking to you like glue...."

Simply turn around, give them a big smile and ask them "Do you speak English? Your problem will invariably be solved by them scurrying away in fright.

OR, you may have the delightful experience of finding someone who actually attempts to help you in English and then, if you can speak English or Thai, and I speak a little Thai, you can take it from there.

edit to add.

I am distressed that the Chirathivat family is concerned about the weakening of sales. Hard times ahead perhaps.

[DrTuner]

Good, good, now be proactive and demolish that evil building in Pattaya.

[osiboy]

I never buy anything in thailand apart from food and drink , europe is better quality and choice, and if there is a problem you can always get a refund or exchange it, customer care is non existent here , reap what you sow Mr Chirathiwat

[lkv]

Yea I think it's us the farangs that were supporting those prices in the past. I honestly don't think the Chinese tourist is coming to Thailand to purchase. Or maybe they do, it's just when they convert from baht to yuan they go like: "no...this can't be right...3,000 baht this Tshirt...no...must be 300 baht.

Lol.

[NCFC]

Everybody moaning. And on the price of alcohol thread. If it is so bad, and it is, why stay there?

[chiang mai]

Yea I think it's us the farangs that were supporting those prices in the past. I honestly don't think the Chinese tourist is coming to Thailand to purchase. Or maybe they do, it's just when they convert from baht to yuan they go like: "no...this can't be right...3,000 baht this Tshirt...no...must be 300 baht.

Lol.

You should get out more, go into the higher end shopping malls and watch the upper middle/higher class Chinese spend, watch them in the boutique shops of the six star hotels spend 300k baht of stuff and then tell the cashier to have it all shipped back to a home in China, there is some serious serious Chinese money roaming around Thailand.

[DD13]

I don't have many complaints about "Central" Beach Road......in fact I enjoy visiting it

Yes the staff act differently than in our own countries, but this is Asia.....part of the experience of living a new life style

With regard to price......we pick our moments....i.e. When the sales are on.....50-70% off.....

That will do nicely thanks.......after all, styles don't change that much...(and I am very particular with my look)

Be happy that you are no longer in the West, where you come home with chewing gum stuck to your shoes

[lkv]

Yea I think it's us the farangs that were supporting those prices in the past. I honestly don't think the Chinese tourist is coming to Thailand to purchase. Or maybe they do, it's just when they convert from baht to yuan they go like: "no...this can't be right...3,000 baht this Tshirt...no...must be 300 baht.

Lol.

You should get out more, go into the higher end shopping malls and watch the upper middle/higher class Chinese spend, watch them in the boutique shops of the six star hotels spend 300k baht of stuff and then tell the cashier to have it all shipped back to a home in China, there is some serious serious Chinese money roaming around Thailand.

Yeah that's exactly where I go out. Now for instance I'm in Central World, last night have been to Emquartier, don't really see what you're describing. To give you an example, Roberto Cavalli has an 80% sale and I was the only one in that shop 20 minutes ago. Maybe in Chiang Mai the situation is different.

[OMGImInPattaya]

Why spend your money here when you can get the same things in Hong Kong much cheaper??? The savings pays for your flight!

So one breaks even but has to go through the hassle of going to HKG to make the purchases. What's the sense in that?

As to Central's problems, maybe they should stop over-paying for embassy land and then constructing half empty ugly malls there with shops not even the Thai One-percent can afford to shop in.

[OMGImInPattaya]

Other than price (which to some extent is driven by import taxes, but not all) service at Central sucks. Who enjoys shopping with sales agents sticking to you like glue while staring at you like a lovelorn teenager? I do as much of my shopping in Europe as I can.

I've always found shopping at Central, and Thailand generally, to be a very pleasant experience. But of course, I like being waited on hand and foot (same in restos, and other service busi esses)...sorta makes me feel like one of the One-percent, which in Thailand maybe I am (or at least Ten-percent) ?

[OMGImInPattaya]

Many X pats are strongly repulsed by dual pricing. On principal some X pats will forgo an item rather than pay a much higher price than the apparent market value. I would not be surprised to see a drastic increase of online purchases.

Also worth noting is the scam, poor or nonexistent return policies, difficulty finding replacement parts etc. The "customer" in this country is not looked upon as in most Western countries.

Didn't take long for the everything's a scam post to appear. Central, in fact, has a quite reasonable return policy. It's just not as generous as many in the West have become accustomed too...like returns on worn unwashed underwear with no questions asked.

[lkv]

Im telling you, the wind is blowing inside these shops compared to how sales were a few years ago. People just don't have the apetite to spend that much and they got used to the ongoing scam of pricing a T shirt at 18,000 baht (which is three times the price in Europe) and then discounting it 80%, making the final price of that t-shirt 3,600 baht. The millions of Chinese tourists that TAT is so proud of are mostly middle class and when they convert to yuan they get a heart attack.

[OMGImInPattaya]

Im telling you, the wind is blowing inside these shops compared to how sales were a few years ago. People just don't have the apetite to spend that much and they got used to the ongoing scam of pricing a T shirt at 18,000 baht (which is three times the price in Europe) and then discounting it 80%, making the final price of that t-shirt 3,600 baht. The millions of Chinese tourists that TAT is so proud of are mostly middle class and when they convert to yuan they get a heart attack.

I really don't know what you're talking about...the most I've paid for t-shirts is maybe 300-400 baht for a three-pack. ?