“We are anticipating an increase in assignments from our clients that want to be a part of TV programmes as a value-added service on top of spending money on TV commercials, particularly after their businesses have been hit by economic uncertainty,” said Pawat Ruangdejworachai, vice president of Media Insight.

Media Insight is a subsidiary of Media Intelligence, a strategic partner of Japanese public relations and advertising agency Hakuhodo Inc.

Pawat said brand engagement could be done in several ways such as sponsor announcements, product tie-ins, computer graphic inserts and marketing activities.

Major broadcasters like Channel 7 and Channel 3 have welcomed this marketing strategy but apparently use this method more on non-prime-time programmes than on prime-time shows.

On “Journey the Series”, aired on Channel 3 after midnight, Media Insight is working with Toyota Motor Thailand to use its cars in the show, he said.

Toyota was among big advertisers that slashed their advertising budgets in the first quarter of this year, according to Nielsen Thailand. Toyota Motor Thailand spent Bt1.22 billion to publicise its brands and products via different media, a 17.45-per-cent decrease from Bt1.48 billion last year.

Another big corporate, Unilever (Thai) Holdings, cut its ad budget by 31.25 per cent to Bt2.43 billion, and Beiersdorf (Thailand) slashed its budget by 38.3 per cent to Bt886.7 million.

On the other hand, Pawat said new digital-TV players like Workpoint TV, One 31 and GMM 25 were aggressive in seeking advertisers that wanted to experiment on marketing efforts with them while facing a sluggish economy.

Ensemble, a branded-content development unit of IPG Mediabrands, recently announced its partnership with content producer TV Thunder to create a new talent show, “La Banda Thailand”.

Dew Intapanya, managing director of Ensemble, said “La Banda Thailand” would be the third international format airing on Channel 3 under the partnership after “Dance Your Fat Off” and “Hidden Singer Thailand”.

“Ensemble is a specialist in branded-content creation. We acknowledge the importance of unique content that is able to respond to clients’ needs and sponsors because such TV content reaches and engages directly with target customers,” she said.

GroupM is another ad-media management firm that has been actively involved with this kind of activity. It is working with top brands like Clear shampoo, Ford passenger cars, Gatsby Moving Rubber hair wax, Sofy and TMB Bank to produce the current season of “Thailand’s Got Talent” broadcast on Channel 3.

Rattakorn Surbsuk, trading partner of GroupM, said in a previous interview that advertisers needed more options to engage with target audiences.

Amid a sluggish economy, they were also looking for a value-for-money solutions.

If it meets its targets, the company will have acquired one-third of the revenue of the total market within two years.

Earlier True Corp group chief executive Suphachai Chearavanont said True Move H was hopeful of becoming the No 2 player by the end of this year in terms of revenue share.

True is expected to announce the second quarter’s financial results early next month.

As of the first quarter of this year, the largest cellular operator in terms of subscription base, Advanced Info Service (AIS), earned 50 per cent of the total revenue in the market, Total Access Communication (DTAC) secured 27.5 per cent, and True Move H had 22 per cent.

“Our [revenue] growth this year will be above the market’s. The market is expected to see revenue growth of only 3-4 per cent,” Kittinut said.

“True Move H has posted double-digit revenue growth for many years. In 2014 its revenue grew 18 per cent, while last year it grew by 20 per cent.”

He said the main reasons for the expected revenue growth included its expanding share of the post-paid subscription market and the continued expansion of its cellular network’s coverage.

True group holds licences to telecom bandwidth on the 900-megahertz, 1,800MHz and 2.1-gigahertz spectra. It also provides service on the 850MHz band on a retail basis for CAT Telecom.

True earlier announced it would spend Bt58 billion on network expansion over the next two years.

“By the end of this year our 2G, 3G and 4G networks will cover 98 per cent of the population,” Kittinut said.

He added that True’s acquisition late last year of a licence to the 900MHz band would enable the company to acquire additional subscribers by tapping the second-, third- and fourth-generation wireless markets currently dominated by AIS.

Jas Mobile Broadband

True and Jasmine International’s subsidiary Jas Mobile Broadband each won a 900MHz licence at an auction last December. However, the National Broadcasting and Telecommunications Commission later re-auctioned Jas’s licence, after the company’s failure to fulfil the initial licence-payment conditions. Consequently AIS grabbed the licence at the new auction this May.

Kittinut said that this year more and more mobile-phone users would turn from basic 2G phones to 3G and 4G smartphones, for which the prices are falling.

The market for mobile data has also surged. The telecom companies will compete to offer competitive prices for targeted users, but those with the best network will secure more users.

According to a report last week by Fitch Ratings, DTAC faced a major challenge to regain market share and stabilise earnings, weighing on its credit profile in the medium term.

Fitch expects DTAC’s service revenue to drop by 1.5-2.0 per cent in 2016 as the company continues to lose market share because of intense competition. Fitch does not expect DTAC’s market position to improve significantly because of the tough operating environment, as its competitors are likely to maintain aggressive marketing strategies to increase their market shares.

AIS ‘to regain share’

The ratings firm expects AIS to regain revenue market share to around 52 per cent after it fell to around 50 per cent in the first quarter. Fitch expects True to continue acquiring market share as it aims to become the second-largest operator.

However, Fitch does not expect DTAC’s weakening market position to affect its ratings immediately, as it has a sufficient buffer against lower earnings and negative free cash flow in the short-term thanks to its strong financial position.

DTAC posted second-quarter net profit of Bt141 million, declining 90 per cent year on year, mainly due to higher depreciation and amortisation, lower earnings before interest, taxes, depreciation and amortisation (EBITDA), and a one-time restructuring cost of Bt394 million.

Since the establishment of the CP Fresh Mart chain 12 years ago to offer buyers fresh food as well as ready-to-eat products more conveniently, CP Fresh Mart has redefined the modern home-meal solution concept.

Now, CPF is launching its new concept store called Magnet Semi Wholesale by CP, enhancing its value chain and supply chain to consumers.

The company held the grand opening of the first store in Chiang Mai‘s San Khampaeng district last Saturday as a role model for further expansion.

Adirek Sripratak, president and chief executive officer of CPF, said it was a growing trend for fewer hyper-discount stores because consumers want stores near to their community rather than big stores in town requiring longer travel. “If the first outlet is successful, we will promptly consider expanding in other locations with a target of 10 outlets by next year.

“Besides our own investment, the company will also expand through franchising. “Basically, each store requires 300 square metres and a Bt3 million-Bt5 million investment depending on the location,” he said.

Magnet Semi Wholesale stocks over 2,000 items of fresh food and consumer products, with half of them coming from CP or CPF.

Consumers will buy retail products while grocers can get wholesale prices for buying boxes or crates of products.

Another trend is e-commerce. It would be easy and convenient for small outlets to deliver products to consumers located within five kilometres.

Thanks to the rapid growth in online shoppers, Magnet Semi Wholesale stores are also expected to provide an online shopping service in the near future. Russell Leigh Berman, president of CP Fresh Mart, said the concept of the Magnet Semi Wholesale stores is proximity, discounting and key CP products. It is designed particularly as an upcountry channel.

It is not a competitor of Makro, a wholesale centre for grocers. They complement each other. It is a true wholesaler for both consumers and grocers in the communities with the idea “save money and save time”.

It delivers quality products at the lowest price possible and with the most efficient shopping experience possible. “Today, we’re testing the concept before moving forward. Like the successful Aldi and Lidl discount stores across Europe, we’re confident that Thailand is ready for this concept with a huge opportunity to grow,” he said.

Uraiporn Cholsirirungskul, chief executive officer and digital transformation consultant at Mirum (Thailand), said SMEs could be affected by major social media platform operators like Facebook, Twitter, Instagram and Line always updating their engagement systems to stimulate the participation of their subscribers.

This is particularly the case for SMEs that relied on social network as key platforms to communicate with customers, she said.

Uraiporn pointed to Facebook’s Bot for the Messenger, a micro-application in a main application that offered benefits while using the main application. She said the new feature allowed a business to be exposed to targeted consumers.

She stressed that getting a consumer to make a purchase was not enough. E-commerce was used as a tool to get people to repurchase and to cross-sell.

On its website, Facebook states that bots can provide anything from automated subscription content like weather and traffic updates, to customised communications like receipts, shipping notifications and live automated messages – all by interacting directly with the people who want to get them.

Apple and Line are also developing similar tools to encourage business transactions via their platforms and devices.

“It is very important that Thai SMEs quickly adopt new technology which will be introduced in the near future,” Uraiporn said. “On top of that, to spread risk from this rapid change, they should have their own online store while using the main platforms to interact with consumers.”

She also said businesses must analyse their strengths and support digital innovation to create more opportunities.

She said mobile phone users were now more interested in using their phones for accessing data, entertainment and financial applications than for making calls. Businesses should be aware of digital lifestyles that shape consumer behaviour.

“Data analytics is also important so all businesses including SMEs to understand the changes in consumer behaviour so they can listen to what consumers want as well as whether they talked about their brand either positively or negatively,” she added.

WITH 10 YEARS OF EXPERIENCE IN ORGANISING EXHIBITIONS IN VIETNAM, HOW DO YOU SEE THE POTENTIAL OF THE VIETNAMESE MARKET?

According to the ranking of the best countries for investment by the World Bank, after India and Singapore, Vietnam is considered the best to invest in 2016. Vietnam has a favourable geographical location right at the heart of East Asia, which is home to a number of large and vibrant economies.

With increasing disposable incomes, rapid urbanisation and rising living standards, Vietnam is one of the most dynamic emerging economies in the Southeast Asian region. Retailers, in particular, have also been drawn by its relatively young population of consumers – of whom 70 per cent are aged between 15 and 64 – who promise to be a key driver of market growth.

Additionally, the education system is in a transitional period and is utilising international curriculums to train the new generation of human resources for the future.

With more than 16,300 active FDI [foreign direct investment] projects that have collectively pulled in a total of US$238 billion (Bt8.3 trillion], Vietnam has become a destination of choice for foreign investors. Given the positive prospects for both global and regional economies, Vietnam is expected to see more growth of small and medium investment projects to support the main stream of these FDI projects by meeting their demand for parts locally without having to import from overseas.

WHAT CHANGES DO YOU SEE IN VIETNAMESE COMPANIES WHEN THEY COME TO SOURCE PRODUCTS AND TECHNOLOGIES AT EXHIBITIONS?

Manufacturers are investing more in long-term production lines by importing more equipment and machinery, and manufacturing is growing by 10.6 per cent a year.

Indeed, the use of quality machinery and equipment makes it possible for products to meet higher standards and larger demand, and create confidence and trust among partners and investors, enabling long-term ties. Reed Tradex intends to expand in terms of both scale and content specialised manufacturing exhibitions like Metalex and Nepcon. By bringing a range of global brands from around the world to one event, we aim to provide more options, offer more choices to Vietnamese firms.

Local industrialists can overcome the problems of time and geography and make contact with international partners. At the same time, they can also introduce their manufacturing capabilities, products and components to potential customers from Vietnam and overseas.

LOOKING FORWARD, WHAT ARE REED TRADEX’S PLANS IN VIETNAM?

Rising incomes and an emerging middle class are generating growth in consumer-driven sectors in Vietnam.

There is considerable demand for high-quality as well as lifestyle-oriented products and services. Particularly in urban areas, consumer demand is surging for higher quality products and services that cannot be satisfied by local production.

In future, moving beyond specialised exhibitions involving manufacturing, Reed Tradex is planning to reach out to the field of lifestyle exhibitions and events to better serve the Vietnam market.

CAN YOU TELL US A BIT MORE ABOUT METALEX VIETNAM 2016?

This year, the 10th edition international exhibitions on machine tools and metalworking solutions for production upgrade – Metalex Vietnam – will return to HCM City’s Saigon Exhibition and Convention Centre from October 6 to 8.

The Metalex Vietnam 2016 will be more specialised and focused to bring together local manufacturers and their counterparts from Asean and Asean+6. There will be seven international pavilions set up by Japan, Singapore, Korea, India, Thailand, Taiwan and China, and, in all, over 500 brands from 25 countries.

Nay Linn, president of Myanmar Restaurants Association and the owner of a restaurant named Sein Lan So Pyay Gardens, said local players lack the capital and experience to compete with these chains. He recalled a member’s unfortunate experience in attempting to rent a building. The restaurateur lost the bid to an international player who offered double the price.

“Most local restaurants are family-owned businesses or small and medium enterprises. How can we compete with international players?” he said.

He urged the government to issue regulations demanding all new restaurants to become members of the MRA or seek the association’s recommendation, so that the MRA can standardise food safety and hygiene. He also urged the government to lease empty land plots to the MRA, which could be turned into food courts to support small members.

Established five years ago and having nearly 500 members now, the MRA aims to help its members share their knowledge and expertise as well as support them when they face difficulties. Nay Linn expects to welcome 200 more members from now until next year, thanks to the bright tourism outlook.

Nay Zaw Aung, the MRA secretary-general and owner of Dolphin restaurant, said food safety, hygiene and cleanliness standards were a priority. The standards should be set during this government’s term, he said.

“We will go about this step by step, in line with the United Nations Global Compact [UNGC]. We understand a UNGC member has committed to meet international standards in UNGC’s priority areas. The UNGC itself cannot monitor all the member’s activities. But, if the UNGC is informed of some irrelevant acts or suspicious activities by one of its members that violate the UNGC standards, it usually investigates and takes action. Likewise, we will also seek a commitment from every member to meet the MRA standard,” he said.

Nay Zaw Aung believes that such a standardisation process is needed for sustainable growth of the restaurant industry. But that needs support and expertise from several government ministries and agencies like the Health Ministry, the Food and Drug Administration, and Yangon City Development Committee.

Meanwhile, he said the acute challenge for the industry as a whole is the lack of human resources.

To address the shortage of skilled workers, the association has pinned its hope on holding seminars and training sessions to raise awareness.

The first of four events in the “Your Restaurant Tomorrow Series” was held in Yangon on May 15. The next would be held in either Bagan or Mandalay in August.

The MRA also signed memorandums of understanding with foreign organisations including Japan’s Overseas Human Resources and Industry Development Association (HIDA) and Thailand’s Bangkok Exhibition Services.

Overseas training

With HIDA’s support, the MRA has sent more than 100 Myanmar restaurant personnel to Japan for study and intensive training over the past three years. Members also visited food fairs including ones in Bangkok to learn about new developments. The MRA was also behind the successful “Myanmar Cooking Master” competition in the past few years.

Promoting traditional foods is on top of the association’s agenda, said Nay Zaw Aung.

As Thailand’s economic recovery is still uncertain and there are signs the unemployment rate might increase, the direct-selling business might be an option for self-employment opportunities to earn extra income or even the main income for better quality of life, the TDSA says.

Suchada Theeravachirakul, the association’s newly elected president, said the TDSA’s mission was to empower people to improve their lives and get proper endorsements, bringing recognition for |the direct-selling business as a respected industry in Thailand and globally.

The association says it will work continuously to ensure the growth of the direct-sales business, as well as to introduce innovative products for today’s digital era. The innovative-product categories include beauty, health, personal care, consumer products, household products, agricultural products, and educational materials.

The direct-selling market in Thailand is worth Bt70 billion a year. The TDSA says it is striving to grow the industry with its 4C strategy.

Community. Establishing the credibility of and maintaining a good perception for the direct-selling industry both domestically and internationally. Ensuring the industry has a visible imprint and provides communities with opportunities for professional and financial development.

Competitiveness. Developing higher capability and performance for member companies and independent direct sellers, in order to compete in the digital market.

Connect. Connecting people and protecting consumers’ benefits and rights by increasing public understanding of the direct-selling industry and its benefits.

Culture. Establishing an organisational culture to encompass values and behaviour for direct-selling persons with the highest standards of integrity, responsibility and ethical conduct.

“The industry might see only gradual growth during this economic situation. In the meantime, we have seen signs of rising unemployment. We think the direct-selling industry will help provide opportunities, careers, good income and a better quality of life in a sustainable society,” Suchada said.