Transformation Marketing Trends to Watch in 2023 by MTX
FRIDAY, JANUARY 20, 2023
Farida Waller
Marketers need to rethink about doing marketing by cooperating the Client x Technology x Creativity as a framework in designing marketing strategies.
The suggestion came from the new marketing course “MTX by RISE“.
The course was organised by Saroj Laohasiri, head of marketing transformation at Bluebik Group, Kornkanok Chaopricha, an entrepreneurial marketer, and Supachai Kid Parchariyanon, CEO and Co-Founder of RISE.
This course will focus on dismantling traditional marketing ideas with nine topics that will transform marketing thinking in every dimension – including marketing transformation, customer of the future, web3, and artificial intelligence – using experiential workshops and case studies.
More than 30 executives will give lectures.
Oliver Kittipong Veerataecha, group chief marketing officer at Dentsu Thailand, said: “It’s not about perfection but more about making the business interesting. New technologies pop up all the time, but understanding customer behaviour is still more important.”
Sutirapan Sakkawatra, head of marketing at SCB Thailand, said: “Know your business model. What can be digitised must be digitised and what can be measured can be improved and replaced.”
Suthipa Panyamahasup, chief personal and healthcare business officer at Osotspa, said: “With today’s wide data reach, you need to know what is rubbish and what is a real diamond. You need to know how to choose and prioritise your information.”
The three will be guest speakers. They will talk about the importance of critical thinking, having a clear end vision, and the necessity for corporations to not stay still if they don’t want to fall behind.
Transformation in the organisation needs to be done before any recession to defend against loss. Cutting unnecessary expenses and increasing efficiency is one form of transformation, Suthipa said.
At the end of the day, it is about capturing the consumer’s attention and generating revenue, Sakkawatra and Veerataecha agreed.
“MTX by RISE” is a 10-week course starting on February 28 and running till May 18. Further information is available at mtx.riseaccel.com.
Courier company sees chance to increase business from live selling online
THURSDAY, JANUARY 19, 2023
Nongluck Ajanapanya
Singapore-based Ninja Van is moving to grab a bigger share of deliveries from merchants who frequently use young female models to sell low-end products live online in its six key markets in Southeast Asia.
The company released a report saying live selling has become one of the most popular e-commerce trends in the countries where it offers courier services: Thailand, Singapore, Malaysia, Indonesia, the Philippines, and Vietnam.
The report – “Live Selling in Southeast Asia (SEA)” – says it uses data gleaned from more than 1,000 of its e-commerce customers in the six countries.
Winston Seow, the company’s chief marketing officer, described live selling as “an intriguing marketing tactic” in a press release on Thursday.
“It’s the only tactic that can fast-track shoppers’ purchase journeys from awareness straight to conversion,” Seow explained. “Live selling also enables e-commerce sellers to build large-scale relationships with their customers, both new and old,” he added, without elaborating.
One in three of its e-commerce clients surveyed is now using up to six hours a week of live selling to boost sales.
Most early adopters of live selling sold clothing, beauty and personal care products, food and beverages and things for use at home, the report says.
According to the survey of 1,000 or so clients of Ninja Van, three online platforms are the most popular in the region: Shopee (27.0%), Facebook (25.5%), and TikTok (22.5%).
Seow said it was possible that e-commerce sellers might use two channels for live selling to expand their reach. In Thailand, Facebook is the most popular social media platform for live sellers, with 37.9%, followed by TikTok, with 26.9%, and Shopee, with 19.8%, according to the report.
Fashion and beauty products dominate live sales in Thailand, the report said.
The report says that online merchants can benefit from live selling, but they also face hurdles that Ninja Van can help solve.
New PTT Oil and Retail chief vows green policies for sustainable growth
THURSDAY, JANUARY 19, 2023
The new CEO of PTT Oil and Retail Business Plc (OR) on Thursday pledged to pursue a green business strategy and provide opportunities to local communities to ensure sustainable growth for the company.
CEO Disathat Panyarachun said he would follow the vision of “Empowering Al towards Inclusive Growth” and will use the “Rise OR” strategy to push for sustainable growth of PTT OR. “Rise” stands for result, intelligence, synergy and entrepreneurship.
PTT OR under his leadership would push for tangible results of its operations and would make prudent decisions, embrace synergy with all agencies of PTT and would operate in a spirit of entrepreneurship, he said.
Disathat said that PTT OR under his leadership would focus on three main policies:
Synchronisation for ecosystem: The company will synchronise its energy businesses and lifestyle to strengthen the OR ecosystem.
Synergy for impact: PTT OR will have synergy with all businesses of PTT to make it more positive for all stake holders so that they can grow together.
Sustainability for the future: PTT will use three measures — “Small”, “Diversified”, and “Green” — to pursue sustainable growth.
Under “Small”, the company will provide opportunities to communities near PTT OR’s outlets to improve their quality of life, Disathat explained.
“Diversified” will explore growth opportunities, including seeking more partners and innovating new products and services.
“Green” will involve a push for low carbon business areas through all businesses of OR so that it could reach the goal of carbon neutrality by 2030 and net zero by 2050, Disathat said.
He added that PTT OR under his leadership would also develop an ecosystem for electric vehicles, which is the future trend.
Deputy director Kirati picked to take over as next AOT chief
WEDNESDAY, JANUARY 18, 2023
Airports of Thailand (AOT) Plc deputy director Kirati Kitmanawat has been selected as the new director, a source said on Wednesday.
Kirati, an AOT deputy director in charge of engineering and construction, will replace Nitinai as AOT chief when he completes his term on April 24.
The source said a subcommittee in charge of salary negotiation will negotiate with Kirati on his salary and perks before his contract is sent to the State Enterprise Policy Office for approval.
The employment contract would be signed by next month, the source added.
According to the source, Kirati was picked because he had the highest score among four candidates with 95 points, while the next best candidate had 91 points.
Kirati got his bachelor’s degree in engineering from Sirindhorn International Institute of Technology, Thammasat University. He later got his Masters and doctorate degrees in engineering from Tokyo University.
Thailand’s Horizon Plus in talks to make EVs for Chinese, European brands
TUESDAY, JANUARY 17, 2023
Horizon Plus, a joint venture between PTT subsidiary Arun Plus and Taiwan-based Hon Hai (Foxconn), has announced plans to manufacture electric vehicles (EVs) in Thailand for Chinese and European brands.
Horizon Plus’s Chonburi plant aims to open in 2024 with production capacity of 50,000 EVs per year to drive Thailand’s ambition to become an Asian hub of EV manufacturing. Capacity will rise to 150,000 EVs by 2030 to meet growing demand from Asean consumers, the company says.
On Monday, Arun Plus managing director Ekachai Yimsakul revealed Horizon Plus is currently negotiating to produce EVs for several partner brands from Europe and China.
“Deals with two partners are expected to be completed by the first quarter of this year,” he said.
China’s Hozon Auto, which makes the Neta V model, is reportedly among the EV brands planning to produce cars at the Horizon Plus plant in Rojana Nong Yai Industrial Estate, Chonburi.
Meanwhile, Horizon Plus has invested US$1 billion (36.1 billion baht) to build a full EV manufacturing cycle in Thailand, promote domestically manufactured EVs, and recruit more than 2,000 skilled workers, Ekachai said.
Developing an EV ecosystem is part of PTT’s mission to create energy sustainability in Thailand, he explained.
PTT president and CEO Auttapol Rerkpiboon said the joint venture with Foxconn will push Thailand towards becoming a low-carbon society.
“This move is also seen as an important strategy to help PTT achieve its goal of net-zero greenhouse gas emissions by 2050,” he added.
Nearly three-quarters (73%) of CEOs believe global economic growth will decline over the next 12 months, according to PwC’s 26th Annual Global CEO Survey, which polled 4,410 CEOs in 105 countries and territories in October and November 2022.
The bleak CEO outlook is the most pessimistic CEOs have been regarding global economic growth since we began asking this question 12 years ago and is a significant departure from the optimistic outlooks of 2021 and 2022, when more than three-quarters (76% and 77%, respectively) thought economic growth would improve.
Nearly 40% of CEOs think their organisations will not be economically viable in a decade
In addition to a challenging environment, nearly 40% of CEOs think their organisations will not be economically viable in a decade if they continue on their current path. The pattern is consistent across a range of sectors, including telecommunications (46%), manufacturing (43%), healthcare (42%) and technology (41%). CEO confidence in their own company’s growth prospects also declined dramatically since last year (-26%), the biggest drop since the 2008-2009 financial crisis when a 58% decline was recorded.
Globally, business confidence around economic growth varies starkly, with G7 economies, including France (70% v 63%), Germany (94% v 82%) and the United Kingdom (84% v 71%) – all weighed down by an ongoing energy crisis – more pessimistic about their domestic growth prospects than they are about global growth.
CEOs are also seeing multiple direct challenges to profitability within their own industries over the next 10 years. More than half (56%) believe changing customer demand/preferences will impact profitability, followed by changes in regulation (53%), labour/skills shortages (52%), and technology disruptions (49%).
Inflation, macroeconomic volatility and geopolitical conflict are top CEOs’ concerns
While cyber and health risks were the top concerns a year ago, the impact of the economic downturn is top-of-mind for CEOs this year, with inflation (40%) and macroeconomic volatility (31%) leading the risks weighing on CEOs in the short-term – the next 12 months – and over the next five years. Close behind, 25% of CEOs also feel financially exposed to geopolitical conflict risks, whereas cyber risks (20%) and climate change (14%) have fallen in relative terms.
The war in Ukraine and growing concern about geopolitical flashpoints in other parts of the world have caused CEOs to rethink aspects of their business models, with almost half of the respondents that are exposed to geopolitical conflict integrating a wider range of disruptions into scenario planning and corporate operating models either by increasing investments in cybersecurity or data privacy (48%), adjusting supply chains (46%), re-evaluating market presence or expanding into new markets (46%), or diversifying their product/service offering (41%).
CEOs are cutting costs but not headcount or compensation
In response to the current economic climate, CEOs are looking to cut costs and spur revenue growth. 52% of CEOs report reducing operating costs, while 51% report raising prices and 48% diversify product and service offerings. However, more than half – 60% – say they do not plan to reduce the size of their workforce in the next 12 months. A vast majority – 80% – indicate they do not plan to reduce staff remuneration in order to retain talent and mitigate workforce attrition rates.
Bob Moritz, Global Chairman, PwC, said: “A volatile economy, decades-high inflation, and geopolitical conflict have contributed to a level of CEO pessimism not seen in over a decade. CEOs globally are consequently re-evaluating their operating models and cutting costs, yet despite these pressures, they are continuing to put their people front and centre as they look to retain talent in the wake of the ‘Great Resignation.’ The world continues to change at a relentless pace, and the risks facing organisations, people – and the planet – will only continue to rise. If organisations are not only to thrive – but survive the next few years – they must carefully balance the dual imperative of mitigating short-term risks and operational demands with long-term outcomes – as businesses that don’t transform, won’t be viable.”
Managing climate risk is a growing priority for businesses
While climate risk did not feature as prominently as a short-term risk over the next 12 months relative to other global risks, CEOs still see climate risk impacting their cost profiles (50%), supply chains (42%) and physical assets (24%) from a moderate to a very large extent. CEOs in China feel particularly exposed, with 65% seeing the potential for impacting their cost profiles, 71% to supply chains, and 56% to physical assets. Recognising the impact climate change will have on business and society over the long-term, a majority of CEOs have already implemented – or are in the process of implementing – initiatives to reduce their companies’ emissions (65%), in addition to innovating new, climate-friendly products and processes (61%), or developing a data-driven, enterprise-level strategy for reducing emissions and mitigating climate risks (58%).
Despite an increasing number of countries now having some form of carbon pricing, a majority of respondents (54%) still do not plan to apply an internal price on carbon in decision-making, and over a third (36%) don’t plan to implement initiatives to protect their company’s physical assets and/or workforce from the impact of climate risk.
The continued importance of trust and transformation in generating long-term value
CEOs noted the need to collaborate with a wide range of stakeholders to build trust and deliver sustained outcomes if they are to generate long-term societal value. The survey found that when organisations partner with non-business entities, it is to address sustainable development (54%), diversity, equity, and inclusion (49%), and education (49%).
If organisations are to remain viable in the near and long-term, they must also invest in their people and technological transformation agendas to empower their workforces. Technologically, nearly three-quarters (76%) of organisations say they are investing in automating processes and systems, implementing systems to upskill workforces in priority areas (72%), and deploying technology such as the cloud, AI and other advanced technology (69%).
However, many CEOs question whether critical preconditions for organisational empowerment and entrepreneurship – such as alignment to company values and leaders’ encouragement of dissent and debate – are present in their companies to tackle the increasingly complex risks organisations face. For example, only 23% of CEOs say leaders in their company often/usually make strategic decisions for their function without consulting the CEO. Further, only 46% of CEOs say leaders in their company tolerate small-scale failures often/usually. However, more optimistically, nearly 9 in 10 (85%) respondents say the behaviours of employees are often or usually aligned with their companies’ values and direction.
Torn between the demands of short-termism and long-term transformation, CEOs say they are primarily consumed with driving current operating performance (53%), rather than evolving the business and its strategy to meet future demands (47%). If they could redesign their schedules, CEOs say they would spend more time on the latter (57%).
Bob Moritz, Global Chairman, PwC, concludes: “The risks facing organisations and society today cannot be addressed alone and in isolation. CEOs must therefore continue to collaborate with a wide range of public and private sector stakeholders to effectively mitigate those risks, build trust and generate long-term value – for their businesses, society and the planet.”
About the data: PwC surveyed 4,410 CEOs in October and November of 2022. The global and regional figures in the report are weighted proportionally to the country or regional nominal GDP to ensure that CEOs’ views are representative across all major regions. The industry and country-level figures are based on unweighted data from the full sample of 4,410 CEOs. Interviews were conducted with CEOs from three global regions (North America, Western Europe and Asia-Pacific).
Future shines bright for Thai jewellery sector through new MoU with Shenzhen
MONDAY, JANUARY 16, 2023
Chanapat Komlongharn
After a long hiatus due to the pandemic, Thailand’s jewellery makers can now return to China and make the most of the opportunities offered by a new memorandum of understanding (MoU).
The Asean Gems and Jewellery Association (AGJA) signed an MoU with the Jewellery Museum of Shenzhen on Thursday at the “China-Thailand Modern Fashion (Gold and Jewellery Cooperation” meeting in Bangkok.
Present at the event were top executives from leading organisations of both countries, including Yang Qing, first secretary at the Chinese embassy; Zuo Jinping, executive deputy head of Shenzhen’s Luohu district; Sitthichai Parinyanusorn, deputy director of the Gem and Jewellery Institute of Thailand (GIT); and Boonlert Siripatvanich, advisory chairman of the Thai Goldsmith Association.
The pact aims to drive the gems and jewellery industries in both countries, as well as foster cooperation, tighten ties and boost trade, a Facebook post from AGJA said.
Suttipong Damrongsakul, president of the Thai Gem and Jewellery Traders Association, said he strongly believes all sides will benefit from this collaboration as most economies are in recovery mode.
Meanwhile, Zuo Jinping said Thailand has been trading with Luohu – a major diamond producer – for a while now, and with this link, both countries can work more effectively together.
“The era of rejuvenation has arrived and the door for Thais to invest in China has opened,” he added.
Suttipong Damrongsakul (Left) and Wang Zhen (The Curator of Jewellery Museum of Shenzhen) (Right)were signing MoU.
According to Luohu’s Bureau of Industry and Information Technology, Shenzhen has developed 10 projects to stimulate growth in the sector.
The projects are:
• Industrial chain replenishment and extension
• Gold finance innovation
• Design creativity promotion
• Intelligent manufacturing
• Brand promotion
• Consumption expansion
• Talent cultivation
• Intellectual property rights protection and standardisation
• Internationalisation
• Environmental enhancement
Liw Chen, an official from Luohu’s Bureau of Industry and Information Technology, also believes the collaboration will be successful.
“We are working together to help Thailand break into the Chinese gems market,” he added.
Meanwhile, Sitthichai said Thailand’s gems and jewellery industry earns more than US$3 billion per year from export and local consumption.
This accounts for about 2% of the country’s gross domestic product (GDP). He pointed out that the industry has also created more than 750,000 jobs in Thailand.
Meanwhile, Shenzhen’s Luohu district is considered China’s jewellery hub, packed with local and international brands, many of whom plan to expand their investment this year.
Jakkaphong unveils strategy to grow Miss Universe brand after ‘THB1.2bn debut’
MONDAY, JANUARY 16, 2023
Nongluck Ajanapanya
The new Thai owner of Miss Universe has hailed the success of the 71st pageant after R’Bonney Gabriel of the US was crowned in New Orleans on Saturday night.
JKN Global Group CEO Jakkaphong “Anne” Jakrajutatip said revenue this year was projected at a satisfactory 1.2 billion baht after the pageant was beamed live to viewers in 121 countries around the world.
About 70% of revenue came from contest-related fees for franchises, licensing, hosting, production, broadcast, ticket sales, and sponsorship, she said.
Jakkaphong made headlines as the first transgender owner of the Miss Universe brand when JKN purchased the organisation for US$20 million (657 million baht) last October.
The remaining 30% of revenue was from non-contest-related channels such as licensing & merchandising, sales of goods or services, and copyright to produce goods or services under Miss Universe brands or trademarks, she added.
Jakkaphong was speaking at a post-pageant event in New Orleans on Saturday night (Sunday, Thai time) held to unveil JKN’s growth strategy for the brand for its franchise holders across the globe.
She revealed nine business strategies aimed at making more money from licensing & merchandising, selling products or services, and MUO copyright on consumer goods and services ranging from natural mineral water to fashion products such as bags – both of which have already been launched.
“Many more consumer and fashion items are on the way. Our goal is to increase the proportion of non-contest-related income to 35-40% of this business group’s revenue. This excludes future expansion of the spa, restaurant, academy, and hotel businesses,” she said.
Jakkaphong also expressed optimism for the upcoming 72nd Miss Universe pageant in El Salvador in December.
Esso deal took one year to close, says Bangchak CEO
SATURDAY, JANUARY 14, 2023
Bangchak Corporation Plc began planning to take over petroleum refining company Esso (Thailand) Plc four years ago, and it took one year of negotiations before the deal was sealed, said Chaiwat Kovavisarac, the Thai petroleum and energy conglomerate’s CEO and president.
On Thursday, Bangchak announced it had acquired 65.99% of Esso (Thailand)’s ordinary shares from ExxonMobil Asia Holdings Pte Ltd. The stake was valued at 55.5 billion baht. Both Bangchak and Esso (Thailand) are listed on the Stock Exchange of Thailand.
After the takeover, Chaiwat said that Bangchak began planning to acquire more petroleum refineries four years ago as part of its business expansion, as petroleum would remain the company’s major money-maker.
“We had serious negotiations with ExxonMobil for a full year,” he said, pointing out that Esso has the capacity to procure crude oil from around the world and is experienced in managing large refineries.
Under the takeover deal, Bangchak will acquire Esso refineries with a total capacity of 174,000 barrels per day, Esso’s network of petroleum warehouses, and more than 700 of its petrol stations across the country.
Bangchak will continue to employ workers at the service stations.
Bangchak’s rebranding of the existing Esso service stations is expected to be completed within two years.
With the business merger, Bangchak will have a combined refinery capacity of 294,000 barrels per day and about 2,100 service stations throughout the country.
Esso will keep its brand for a variety of chemical and petroleum products, including lubricant oil.
Electric tuk-tuk innovator MuvMi to triple fleet as demand soars
FRIDAY, JANUARY 13, 2023
Nongluck Ajanapanya
Thai startup MuvMi will nearly triple the number of its electric tuk-tuks this year from 350 to 1,000 due to rising demand for rides in vehicles, said the CEO of its parent company, Urban Mobility Tech.
Krisada Kritayakirana, who is also the co-founder of Urban Mobility Tech, told a press conference on Friday that demand for rides in electric tuk-tuks is growing in tandem with the rising popularity of electric vehicles (EVs) in Thailand.
“Our initial goal is to provide environmentally friendly vehicles for city dwellers who struggle to find public transportation after departing skytrain, subway, and bus stations,” he said.
“The majority of our MuvMi customers are working people and university students who take tuk-tuk to and from their homes to shopping malls, offices, restaurants, and universities nearby,” he added.
Customers can book an electric tuk-tuk through the MuvMi app for 10 baht, with the price rising in tandem with travel time and distance.
Krisada said the company would increase the number of electric tuk-tuks in the first half of this year, while the second half would focus on expanding service to cover all of Bangkok and other major cities, such as Chaing Mai, and the resort island of Phuket.
“We are currently available in 12 main areas in downtown Bangkok, including Sukhumvit, Chulalongkorn University, Samyan, Silom-Sathorn, Ratchada-Rama 9, and Chidlom-Lumpini,” he said.
The company’s strength is the technology it invented and developed, Krisada said.
Krisada Kritayakirana
Krisada said the company owns the designs of the electric tuk-tuk body and the EV charging points using solar energy. Both designs are protected by patents, he said. Artificial intelligence is also used to control the current to achieve a long-term competitive advantage, Krisada said.
He said the company’s expansion plan would cost between 600 million and 700 million baht. As the company is a startup business, some funding will be from venture capital and partners.
“We expect to expand both domestically and internationally as a 100% Thai EV ride-sharing service with its own EVs and platform. We are committed to further developing our technology, ” he said.
MuvMi has had about 3.7 million passengers since its inception in 2018. However, as demand increased and some customers complained about long wait times, Krisada said the company decided it was time to expand.
Urban Mobility Tech is a success story for Thailand’s National Innovation Agency, which helped launch the company in 2016. It took nearly two years to develop and manufacture its electric tuk-tuk before launching the service five years ago.
According to Vichian Suksoir, deputy executive director at the National Innovation Agency’s Innovation Development, the agency wants MuvMi to be a role model for other Thai EV startups and related businesses, such as EV charging stations.
They can seek support from the agency, he said.
EV and related technology will be one of the six key sectors the agency will allocate funding to this year, Vichian said.
“This year, we allocated 100 million baht to support EV and EV-related technology. Interested startups must submit a business plan for our consideration. We plan to award 10-15 startup grants this year,” he said.
The National Innovation Agency’s strategy coincides with the government’s efforts to propel the growth in the digital economy. The EV industry is contributing to the effort. Currently, the Thai government is implementing a number of measures to attract investment from both foreign and domestic investors. At the same time, it is implementing measures to increase demand for EVs in the country.
According to TTB Analytics, Thailand’s EV industry continues to surge in both production and demand. The number of new EV registrations at the Department of Land Transport was 15,423 during the first 10 months of last year. The total number of EV registrations in the previous decade (2012 – 2021) was 11,749.
According to the source, Kirati was picked because he had the highest score among four candidates with 95 points, while the next best candidate had 91 points.
Suttipong Damrongsakul (Left) and Wang Zhen (The Curator of Jewellery Museum of Shenzhen) (Right)were signing MoU.
Sitthichai Parinyanusorn
Krisada Kritayakirana
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