Chief executive officer Sermkhun Kunawong said yesterday that to be ready for the challenges ahead, the company had prepared three main strategies.

The first strategy involves CMO retaining its position as a leading event-management company by strengthening its competitiveness and manpower in line with new technology and more sophisticated clients, particularly in the sport and music industries.

CMO anticipates new requirements from clients wanting high technology for light and sound to support their sport events such as Thai Fight and concerts run by BEC-Tero Entertainment.

Second, the company is expanding its tourist business. Under this business arm, it operates a contemporary cultural show called “Himmapan Avatar” at the Show DC mega-complex on Rama IV Road, and the “Imaginia Playland” theme park and learning centre for kids. It plans to expand to two more locations.

The third strategy relates to its entertainment- and lifestyle-related business serving the increasing demand of customers keen on arts, fashion and partying.

Under this business arm, the company has two subsidiaries, Muse Corporation and Momentum S.

In a bid to achieve the Bt2 billion revenue target by 2018, CMO will invest Bt300 million.

Of the projected revenue, the event business is forecast to generate 70 per cent.

Sermkhun acknowledged that the event industry this year had been stagnant, with growth of less than 5 per cent. But he believes that in the remaining months of the year, the industry will pick up major corporates in the automotive and real-estate sectors that are expected to launch marketing campaigns and events.

CMO is confident it will book at least Bt1.4 billion in revenue this year.

The official opening of the new route took place in Vientiane on Friday.

The event was attended by Thailand’s Ambassador to Laos Mr Noppadon Theppitak, Minister Counselor (commercial) to Laos Ms Pimol Pongkongkaew, Director General of Laos’ Department of Civil Aviation, Mr Vanhpheng Chanthaphone, and Director of Vientiane’s Information, Culture and Tourism Department, Mr Khampadith Khemmanith.

Air ticketing agencies in Laos were also represented at the inauguration.

Speaking at a press conference on the occasion, Thai AirAsia CEO Mr Tassapon Bijleveld said the new route would help to stimulate both tourism and investment in Vientiane and build on the already strong relationship between Laos and Thailand while offering more opportunities for the two neighbours to strengthen their ties.

“To mark the inauguration of the Vientiane-Bangkok route we are offering a special promotional fare starting at only US$35 per trip, available for booking July 1-3, 2016, for travel from July 1-November 30, 2016,” he added.

“We are confident that both Lao and Thai nationals will see that this route offers great travel opportunities by saving them both time and money,” Mr Tassapon said.

“We plan to actively promote this route to both Thai and foreign travellers so that they can come to Vientiane to support its business sector. We are proud to be able to contribute to enhancing Laos’ economy while also building on ties between Thailand and Laos,” he added.

AirAsia currently serves three routes from Laos with AirAsia Bhd. (code AK) flying from Vientiane to Kuala Lumpur three times a week and Thai AirAsia (code FD) flying from Luang Prabang to Bangkok daily (starting March 24, 2016), and now Vientiane to Bangkok daily.

These routes not only provide more convenient travel between Laos and Thailand but also help to bridge the nations of Asean.

Each year, the number of passengers using AirAsia’s services increases by about 15-20 percent, of which some are in Asean countries, Mr Tassapon said.

The decision to allow Thai AirAsia to fly to Vientiane will give the airline cover in all neighbouringMekong region countries, namely Cambodia, Laos, Myanmar and Vietnam.

Meanwhile Lao Airlines is improving its service standards to differentiate itself from low cost airlines as well as increasing the number of flights to other countries to give it a competitive edge.

Salinla Seehaphan, corporate affairs director at Tesco Lotus, said that using customer insight has been integral to the success and improvements of Tesco Lotus’s stamp-collection programmes since its launch in early 2015.

She said the most recent stamp programme, “Snoopy”, saw customers collecting more than 4 million stamps per day. More than 1.6 million pieces of premiums have been redeemed.

“From our data, almost 70 per cent of customers who shop at Tesco Lotus Express, collect stamps. The two most important factors that influence their decision are: the quality and design of the premiums, and, extra stamps promotions that help ease and speed up the collection process,” said Salinla.

“This is why Tesco Lotus focuses on both of these aspects. Extensive customer research on focus groups are conducted before deciding on the character of the stamp campaign, as well as the designs and functionality of the premiums,” she added.

For extra stamp promotions, Tesco Lotus works very closely with its suppliers to offer highlight products with extra stamps to help customers collect and redeem faster. Clubcard members also get extra privileges that help them collect and redeem faster and more easily.

For every Bt50 spent at Tesco Lotus Express, customers receive one stamp. Tesco Lotus will be launching a new stamp-collection programme in this month.

Meanwhile, Big C Supercenter, a subsidiary of Berli Jucker Group (BJC), continues to launch its promotion campaigns to drive home its “Thai retailer with customers at the heart” policy by unveiling its newest stamp-collection campaign.

The launch of new stamp collection has been combined with Big C’s first stamp collection mobile application called “Big C Big Stamp”, aimed at drawing digital-age customers and smart shoppers.

The company expects 10-per-cent growth in overall sales during this campaign.

Somying Songsermswasdi, director of loyalty marketing and customer relations management of Big C Supercenter, said that Big C has experienced enormous success in its stamp-collection campaign over the past five years and the number of participating customers has grown continuously.

“We always select high-quality international-standard kitchenware for the campaign, as this campaign has been very popular among smart shoppers who are looking for redeemable gifts that they can fully utilise,” she said.

To cater to this popular demand, Big C launched its latest stamp-collection campaign on June 28, expiring on October 31 this year, to enable customers to collect stamps and redeem premium “Vivo” German-standard high-quality knife sets at only Bt1 a piece. The redemption will last until November 14 this year. The stamp-collection campaign applies to all store branches nationwide – Big C Supercenter, Big C Extra, Big C Jumbo, Big C Market and Mini Big C.

“This year’s campaign has a number of major developments. First, we have made it easier for customers to collect stamps and quicker to reach collection targets. Customers will earn one stamp for every Bt300 spent [compared to Bt500 in previous campaigns]. We expect this campaign to increase spending and shopping frequency throughout the campaign duration. We expect a 10-per-cent sales growth from last year.

“Second, to cater to the need of digital-age consumers, we will launch the ‘Big C Big Stamp’ mobile stamp-collection application – the first app of its kind by a hypermarket in Thailand. We will also continuously launch a variety of promotional campaigns and enhance our services to support our goal of being the ‘Thai retailer with customers at the heart’,” Somying said.

This is one of the innovative initiatives implemented by PTT Exploration and Production (PTTEP) which, like oil and gas exploration firms across the world, has been under huge pressure from a sharp decline in oil prices.

“Innovation has been an integral part of our vision, aside from green practices, as we strive to be a good corporate citizen,” said Kanit Sangwongwanich, executive vice president for the company’s Engineering and Development Group. “Our goal is to stay firmly in the business for the long term.”

The Sirikit oil field in Kamphaeng Phet province was selected as the pilot project for increased oil recovery. If the innovation is successful, it will be replicated at other production sites, which last year produced 373,830 barrels of oil equivalent per day.

The move is also under a study to reduce the construction cost of drilling platforms, preferably to an average of US$20 million (Bt702 million) from $25-$30 million on average at present.

Another area concerns seismic data processing – enhancing the success of exploration.

Kanit said PTTEP had over the past five years been committed to advanced technology and spent roughly 3 per cent of its annual revenue on research and development.

The focus has become clearer in the past two years after oil prices nose-dived from a peak of $148 per barrel in 2008. In the interconnected world oil prices are influenced by a range of factors.

Last week, a stronger dollar and uncertainty over Britain’s vote to leave the EU troubled traders, pushing the price below $50 a barrel and further squeezing margins. At PTTEP, the average production cost is $34 per barrel on average.

“For sustainable operations, we need to be competitive. Oil prices are unlikely to stay as high as before. Now, it is the lower-for-longer era,” he said.

Innovation can be home-grown or through acquisition, he added. Self-developed innovations are shared with other players for social benefit. And with hundreds of engineers, PTTEP is earmarked to enhance its production efficiency, as well as place a greater focus on safety, health and environment.

It is also collaborating with local universities like Chulalongkorn, Chiang Mai and Kasetsart, as well as local organisations like the National Science and Technology Development Agency. A research centre is planned that will focus on the upstream petroleum business.

Some of the technology will be exhibited at the 10th International Petroleum Technology Conference. Kanit’s is the event’s programme committee co-chairman.

Hundreds of studies will be discussed at the conference in November, which seeks to promote knowledge sharing and scientific and technology dissemination on a global scale.

“Innovation is a key factor to survival. The key is all knowledge must be integrated to answer the corporate goal and we need to share the knowledge with others to uplift the industry. We cannot survive alone,” he said.

TOT senior executive vice president Morakot Thienmontree said TOT |told AIS to wrap up talks |on the matter within seven |days.

The rental fee relates to TOT’s telecom towers and network equipment from October until last month.

The state agency informed AWN on the backdated payment last week after they reached agreement that AWN will pay TOT a rental fee of Bt466.67 million (excluding VAT) per month for the towers and equipment, starting this month.

TOT requires AWN to pay the monthly fee in advance.

Last week AWN paid the July fee – Bt485.33 million (including VAT) – to TOT.

Big payments

This payment is part of the main contract that AWN will have to pay to TOT for renting space on the telecom towers and the network equipment – Bt3.6 billion and Bt2 billion per year respectively. However, both parties have yet to sign the main contract.

AWN needs TOT’s infrastructure to continue serving around six million users of its 2G service on its 3G/4G network.

AIS had utilised the assets |to provide a 2G service under |a TOT concession before handing them over to TOT after |its concession expired last September. The concession expiration prompted AWN |to rush to rent the infrastructure.

The partners also hosted a “Thai SMEs Spring Up to Industry 4.0” seminar to create a cooperative network in advancing Thai industry through sustainability.

Since 2011, the Dow Chemical for Sustainable Industry programme has been organised by Dow Thailand Group and partners including public, private, non-profit, and international organisations to upgrade Thai industrial standards by providing knowledge and consultation to small and medium-sized enterprises on “lean management for the environment”.

The programme is aimed at reducing production costs while increasing the competitive advantage for the industrial sector.

This year, apart from the consultations given to participating factories within the eight-month time frame, the programme will be joined by seven universities designing a “lean management for the environment” curriculum.

“Industry 4.0” is an integration of production connected through the “Internet of Things”, allowing smart factories and logistics, and letting customers interact and share information on a real-time basis to increase management efficiency.

In Thailand, SMEs are strategic players in stimulating the country’s economy. Gross domestic product of SMEs in the first quarter of 2016 grew significantly, at 5.1 per cent. This was the seventh consecutive quarter of growth.

“We are approaching Industry 4.0 and Thailand has driven reform policies in various sectors to increase Thailand’s competitiveness and its standard, especially with SMEs as the national agenda,” said Somchai Harnhiran, permanent secretary of the Industry Ministry.

“Educational institutions must work towards industrial needs, as they will be the key driver of the economy. The Dow Chemical for Sustainable Industry programme is in line with the direction of the industrial-development policy and strategy of helping Thai SMEs to raise their standards through lean management for the environment.”

Jirasak Singmaneechai, managing director of Dow Thailand Group, said: “Throughout the years, Dow has evolved from vendors to partners who provide solutions for customers with more than 7,000 researchers in R&D centres around the globe to support our clients in various industries.

“We work closely with our clients to improve production efficiency to manage costs and resources while being environmentally friendly. We also develop new products to keep up with fast-paced market trends.”

The US-based direct-selling giant still believes in the tremendous opportunity for this type of business in the Kingdom.

Kittawat Ritteerawee, managing director of Amway (Thailand), said the nature of direct-selling business was network marketing.

The direct-selling market in Thailand was worth Bt70 billion last year, up 3 per cent over 2014. There are currently between 200 and 300 local and international direct-selling firms in the market with regular activities, of which about 50 are real active players. Amway Thailand claims to have 24 per cent share of the market.

Amway will celebrate the 30th anniversary of its Thailand subsidiary next year. Thailand is Amway’s second-oldest operation in Asean after Malaysia, where the company opened a subsidiary 39 years ago.

In Asean, Amway is currently available in Malaysia, Thailand, Singapore, Indonesia, the Philippines and Vietnam. It does not exist in Myanmar, Cambodia or Laos, as those markets are still not quite ready to enact direct-selling regulations.

“In Thailand, we have seen a significant rebound of the overall economy and consumer sentiment. Our Amway products, especially health and beauty products, have started to be effectively released from the stocks. We have clearly seen positive signs for the country and our direct-selling business,” he said.

“We got beyond the sales targets for the first half of this year, driven by our Body Key weight-management products, which grew by 30 per cent year on year in the first six months, driven by the fit-and-firm trend, in which individual consumers are more concerned about weight management. “Our nutrition brand Nutrilite saw strong growth of 17-18 per cent over the period,” Kittawat said.

He said the problems caused by UK citizens’ vote to leave the European Union would be very short-term. Both the EU and Britain have strong economic fundamentals. Thailand also allocates only 2 per cent of its total exports to the United Kingdom.

The growth strategy is based on Toto’s forecast of the company enjoying sustainable growth in those three developing markets, driven by strong domestic consumption and the expansion their economies.

Hiroyuki Suzuki, president of Toto (Thailand) Co, said that under the 2020 strategy the Thai subsidiary aimed to double its business domestically both in terms of sales and market share.

“Since the beginning of this year, we have extended our product line-up from only the super-premium segment to the upper-medium segment, allowing a greater number of potential customers to afford our Toto products,” he said.

“With such a product expansion, we aim to increase our domestic sales by between 20 and 25 per cent every year” until 2020.

He added that the retail prices of sanitary-ware products in the upper-medium segment started from Bt4,000 a piece, while super-luxury-product prices were between Bt100,000 and Bt400,000.

Toto’s current share of the Thai sanitary-ware market is 10 per cent. Its rivals Cotto and American Standard lead the market with significant shares.

Toto (Thailand) was established on November 27, 2009, with a factory at Hemaraj Saraburi Industrial Land in Nong Khae district, Saraburi.

The Bt1.6-billion factory produces two categories of Toto products: sanitary wares, including toilets and ceramic items, with annual capacity of 500,000 units per year; and sanitary fittings, including faucets, with a capacity of 115,000 units per year.

Suzuki said the company exported 70 per cent of its products, with most going to Japan (60 per cent), followed by the United States (10 per cent), Europe (10 per cent) and other destinations in Asia.

“With our 2020 plan, we want to emphasise more on the domestic market. We aim to significantly increase the ratio of our sales domestically [compared with exports] from currently only 30 per cent to 80 per cent by 2020,” he said.

The Toto group posted total sales in the fiscal year ending March 31, 2016, of 567,889 million yen (Bt194.2 million), up 4.3 per cent over the previous year.

The group operates 29 manufacturing facilities in 18 countries and territories, including Indonesia, Malaysia, Vietnam, mainland China, Taiwan and India.