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Retail competition in eastern Bangkok will grow more intense this year with major new marketing strategies by three giant retailers aimed at capturing demand and rising purchasing power in the area.
Siam Piwat Co, operator of the Paradise Park shopping complex on Srinakarin Road, has earmarked 50 million baht to spur demand at the retail complex with a special midnight sale from Jan 28-30.
Customers can receive discounts of 30-90% from 700 tenants.
The company is also arranging Chinese New Year campaigns at its two inner-city malls - Siam Discovery and Siam Center.
The combined campaigns are expected to see 4 billion baht circulate.
Chadatip Chutrakul, Siam Piwat's chief executive, said the purchasing power at Paradise Park has steadily risen in the five months since its opening. Spending per bill now stands at about 4,000 baht, nearly the levels seen at Siam Discovery and Siam Center.
Overall purchasing power has grown by 20% to date, while the number of foreign tourists visiting the two inner-city complexes represent 30% of the total, up from 22% during the political unrest last April and May, she said. The pre-unrest level was 35%.
"This year, we plan to develop two new shopping complexes in suburban Bangkok," said Ms Chadatip.
Siam Piwat has set an overall marketing budget of 300-350 million baht this year, of which about 100 million baht will be used at the three shopping complexes.
Meanwhile, Paradise Park arch-rival Seacon Square has doubled this year's marketing budget to 2 billion baht, in part to accommodate its Chinese New Year campaign.
Charun Poopat, Seacon Square's vice-president for marketing communications, said 2,000 square metres of the ground floor of the mall will be decorated under the theme of "Chinese Walking Street".
Products from China including apparel, ceramics, foods and ornaments will be on offer.
Mr Charun said Seacon Square is seeing improved purchasing power from this time last year, with 53% of visitors buying items, up from 50%.
Meanwhile, Piyawan Leelasompop, Central Department Store's vice-president for marketing, said the company is renovating the fifth floor of Central Department Store Bang Na, turning it into a food destination for area residents.
She admitted competition in the area had grown more intense due to new players, but the Bang Na branch has not been affected.
Company research shows the level of loyal customers at the Bang Na store remains at 90%.