Facial-skincare Industry Report 2008

June 2008

Thailand’s Skincare market is a principal market for manufacturers. All customers are somewhat highly sensitive to price. The expansion of the market depended on the overall economic situation, expanding when times were good, contracting when the economy soured. In the highly competitive market, most manufacturers not only tried to improve product quality and develop a variety of product types, but also sought to use pricing as their principle tool for competition.

Markets for Skincare are divided into Facial-skincare 70% and Body-skincare 30% with a total market value of 15 billion baht. The total market value is expected to increase by 10 percent per year. Consequently, entering this industry appears to be a very attractive option for a number of new investors, both local and international alike.

For the most part, Thai manufacturers have focused more on natural products, while international manufacturers have their own brand name. Sampling tests have been used to spur demand in the market, especially to increase consumption among teenagers and male consumers. Key players in Facial-skincare category in Thailand are Pond’s – the flagship brand of Unilever, Oil of Olay – the flagship brand of Procter & Gamble (P&G), L’Oreal – the international beauty brand, and Smooth E – the local leading brand.

Media expenditure from 2002 to 2008 Q1

Among 100 billion baht of total annual advertising media expenditure in Thailand, Skincare category is the top media spending of 6 billion baht and this media spending is dominated by Facial–skincare at 70% or 4.2 billion baht and it continues growing at more than 10% every year from 2002 to 2007. In 2007 Facial-skincare media spending was 4.3 billion baht, and when compares 2007 Q1 to 2008 Q1, Facial-skincare category increases 10.8%.


When consider by category in Facial-skincare from 2002 to 2008 Q1, the top 3 spenders that cover 80% of spending are Facial-skincare Whitening / UV, Facial-skincare Anti-Aging, and Facial Cleanser. In 2007 Whitening / UV media spending was 1,579 million baht, Anti-Aging media spending was 1,166 million baht, and Cleanser was 776 million baht. And when compare 2007 Q1 to 2008 Q1; Whitening / UV increases 50% while Anti-Aging and Cleanser decrease 32%.



In term of spending by medium from 2002 t0 2008 Q1, TV is always the most popular medium followed by Magazines and Radio. In 2007 TV spending was 2,151 million baht, Magazines spending was 142.4 million baht and Radio spending was 45 million baht. And when compare 2007 Q1 to 2008 Q1; Only TV spending increases 25% while other mediums maintain or decrease.



Media expenditure from 2002 to 2008 Q1 by Major Brand

Major brands in term of media spending from 2002 t0 2008 Q1 are Pond’s, Oil of Olay, L’Oreal, Garnier and Smooth E. While Biore dropped out from the major brands in 2006. In 2007 Pond’s media spending was 1,019 million baht, Oil of Olay media spending was 605 million baht, L’Oreal media spending was 358 million baht, Garnier media spending was 316 million baht, and Smooth E was 243 million baht. And when compare 2007 Q1 to 2008 Q1; Only Garnier increases double while other major brands maintain or decrease.




Major brands in Whitening/UV segment from 2002 to 2008 Q1 are Pond’s followed by Oil of Olay and Garnier. In 2007 Pond’s media spending was 445 million baht, Oil of Olay media spending was 283 million baht, and Garnier media spending was 242 million baht. And when compare 2007 Q1 to 2008 Q1; all 3 major brands increase their spending; Pond’s increases 55%, Oil of Olay increases 47% and Garnier 73%. This may indicates that white facial skin is still in great demand among Thai.



Major brands in Anti-Aging segment from 2002 to 2008 Q1 are also Pond’s followed by Oil of Olay and L’Oreal. In 2007 Pond’s media spending was 396 million baht, Oil of Olay media spending was 322 million baht, and L’Oreal media spending was 207 million baht. And when compare 2007 Q1 to 2008 Q1; all 3 major brands decrease their spending; Pond’s decreases 28%, Oil of Olay decreases 59% and L’Oreal 35%. This may indicate that anti-aging facial-skincare is now less popular.



Major brands in Facial cleanser segment from 2002 to 2008 Q1 are also Pond’s followed by Neutrogena and Smooth E while Biore was slowdown and dropped out from major brand in term of media spending since 2007. In 2007 Pond’s media spending was 168 million baht, Neutrogena media spending was 156 million baht, Smooth E media spending was 130 million baht, while both Biore and Johnson’s Clear & Clean spent 70 million baht. And when compare 2007 Q1 to 2008 Q1; Only Smooth E increases slightly while other major brands decrease. This also indicates less popular of cleanser.



In conclusion, Facial-skincare category is a very potential market and has a stable growth in term of media spending. Facial skincare whitening/UV is the biggest segment then followed by facial skincare anti-aging and facial cleanser. Pond’s is the top spending brand in every segment followed by Oil of Olay.

The Big Move in Facial-skincare in 2008

Pond’s elevates its worldwide brand image using unrivaled technologies to meet all facial - skincare needs regardless of age or purchasing power


In the first half of this year, Pond’s will shake the Thai market with the launch of three product groups that better meet the needs of Thai women. The innovative products include: 1) New Pond’s Age Miracle, 2) New Pond’s White Beauty and 3) New Pond’s Foam.

In the first half of this year, Pond’s will shake the Thai market with the launch of three product groups that better meet the facial care needs of Thai women. The innovative products include: 1) New Pond’s Age Miracle, 2) New Pond’s White Beauty and 3) New Pond’s Foam.
Pond’s by Unilever Thai Trading Limited has announced a worldwide total brand re-launch by strategically setting up a new platform to attract affluent customers to its masstige (mass + prestige) product lines as well as encouraging non-skincare product users to try mass market brands. The total brand re-launch is believed to enable Pond’s to beat its rivals and retain its leadership in the 9.9 billion baht-in-value facial-skincare market which Pond’s is a strong market leader.

This total brand re-launch marks a major change in Pond’s worldwide brand. Thailand is the first market in Asia to implement these important changes that will delight consumers with a prestige beautifying experience. The change includes:
State-of-the-art technology for facial - skincare - Exclusively researched and developed by the Pond’s Institute, the unique beauty technology provides proven results for facial care and nourishment

New and modern packaging – New Pond’s comes in new proprietary packages and is also available in vacuum tubes that completely ensure product efficacy
Prestige In-Store Experience – With remodeled shelf designs at every Pond’s booth nationwide and professional consultation by Pond’s Beauty Advisors, trained by Strafford and Chan Private Ltd who is the training consultant for Singapore Airlines, the shopping experience will be more special than ever.

With the major total brand re-launch, Pond’s will be the only brand in the Thai mass facial - skincare segment to deliver a comprehensive range of products covering all steps in skin cleansing and nourishment. These include moisturizers, lightening and anti-aging products for all skin types and levels of consumer affluence.

“Though Pond’s new platform will categorize products into mass and masstige groups; there will be no cannibalization or confusion as to each group’s roles. The mass category includes New Pond’s White Beauty, Pond’s Perfect Result and Pond’s Lighten and Re-new and is designed to draw non-facial-care users into the market, creating more product penetration across the category; while the Pond’s Flawless White and Pond’s Age Miracle are intended to encourage regular facial - skincare users to upgrade to masstige product lines offering increased efficacy at premium pricing. The market segmentation by New Pond’s will drive growth in the overall facial skin care segment,” said Market Development Director, Unilever Thai Trading Ltd and added that “More than 700 million baht will be injected into the campaign with 360-degree marketing communications designed to communicate Pond’s advanced skincare technologies and money back guarantee as well as encourage consumer product trials. Also, Pond’s has given a major face-lift for its merchandising displays nationwide, as studies have indicated that over 70% of shoppers look for beautiful shelf displays, point of purchase trials and professional consultation and services in their shopping experience.”

Pond’s is the leading skin care expert including a deep understanding of women’s emotional needs. Pond’s also believes that beautiful skin will not only make them feel complete and more confident in their appearance but will help them to find love and romance in life. This is reflected in the new communications campaign by Pond’s that beautifully integrates the “Romance Realized” in all brand elements as it evolves through different stages in life. 1) Romance Awakening for teens whose beautiful skin will open doors to wonderful dating experiences 2) Finding True Romance for women in their early 20’s who are in search for committed and true love and 3) Romance Revival for married women who long for renewed romance throughout their marriage. The touch of romance in all Pond’s communications will strategically show a deep understanding and true connection between Pond’s and women around the world. Romance will be integrated as a brand attribute, helping us stand out and be more appealing to consumers,” said Market Development Director.

OLAY will answer all skin-lover’s needs with "Love your Skin, Say Olay"


P&G Thailand jump-starts its 2008 business agenda with the latest campaign launch dubbed “Love your Skin, Say Olay” that offers an appealing all-in-one package deal of two product lines: Olay Total Effects and Olay White Radiance to consumers.

P&G Thailand jump-starts its 2008 business agenda with the latest campaign launch dubbed “Love your Skin, Say Olay” that offers an appealing all-in-one package deal of two product lines: Olay Total Effects and Olay White Radiance to consumers. Marketing Communications Manager for Procter & Gamble Trading (Thailand) Ltd., says “The campaign ‘Love your Skin, Say Olay’ is Olay’s marketing strategy to tap into the facial - skincare segment. This is the first time ever that Olay has brought together 2 skincare product lines including Olay Total Effects from the anti-ageing product range and Olay Total White Radiance from the whitening product range. The consumers can see the diversity of Olay products that cater to their needs and to everyone who look for the ideally perfect skin. It is the experience of a fair, radiant with natural and young looking complexion that makes them feel like being pampered every day in their home and fall in deeper love with Olay. This year, the 2 Olay product ranges sets to launch a new product of distinct quality which offers the latest facial - skincare technology innovation that will enhance the product performance and also will accommodate the ever-changing demand and lifestyle of consumers”, says Marcom manager.

In the beginning of this year, Olay Total Effects launch its latest product that fits present busy lifestyle of the consumers who has very little time to take care of their skin but yet need very special care. Olay Total Effects Anti-Ageing Facial Stretch Mask helps reduce the fine lines with the latest innovation of Stretch Technology, uniquely developed for Olay. Certified by dermatology experts from APCSA (Asia-Pacific Center for Skin Ageing), the product envelops facial contours to deliver 7 anti-ageing treatment benefits deep into the surface layers of the skin, leaving the skin radiant and young-looking. APCSA has conducted research on the ingredients that contribute to the anti-ageing treatment and found that ‘Niacinamide’ in Olay Total Effects has the very skincare benefit in helping reduce fine lines.

To increase market share in the whitening segment, Olay sends 2 more new products to the battlefield namely Olay White Radiance UV Blocker and Olay White Radiance Eye Brightening Serum. The 2 products help fight 5 sign of skin darkening problems such as blotches, uneven skin tone, damage from sun exposure and blemishes thanks to the concentration of vitamins for skin whitening 10 times higher. 10 beautiful women from 5 countries in Asia are brought together for the campaign ASIA’S PERFECT 10 to represent the bright skin experience. Three captivating women of refined skin from Thailand namely Natalie - Nuttinee Jirawanond, June - Sawitri Rochanapruk and Amp - Suttikan Wangjareontaweekul are chosen to represent Olay as the Masstige Brand, the quality that is recognized by women throughout Asia.

The newly-launched products of each range were developed especially for Asian women’s skin emphasizes the essence of Olay to address every specific need of the perfect skin experience ideal to women around the world. With the 360 degree marketing integration that combines above-the-line and below-the-line activities side-by-side with marketing events and PR promotional campaigns as well as the utilization of mass media i.e. TV, newspapers and other new media sources, Olay aims to create the brand experience or the ‘product trial experience’ through consumer events, allowing them to put Olay to test and develop a sense of brand loyalty in the long run. Such strategy will help P&G sustain its leadership in the facial-skincare market.

Sony bombards electronic market

June 2008

Presenters display Sony products at the Sony’s ‘Big Screen, Big Fun’ promotion at Central World. The event is part of its marketing campaign to increase sales as much as 10 percent this year.

Sony Thailand will spend 1.3 billion baht this year on marketing its Bravia LCD TVs, Cyber-shot compact digital cameras, Alpha professional cameras and Vaio laptops to achieve sales growth of 10 percent after zero growth in its last fiscal year. The company will use "cross selling marketing" to market these four product categories, meaning it will convince customers to buy more than one product by using the Bravia LCD TVs as the main product and linking its usage to other Sony products such as Handycams, digital cameras, Blu-ray DVD players and audio systems.
Presenters display Sony products at the Sony’s ‘Big Screen, Big Fun’ promotion at Central World. The event is part of its marketing campaign to increase sales as much as 10 percent this year.Managing director of Sony Thailand said Sony was confident of achieving its growth target for its 2008 fiscal year, even with the current political instability and steep inflation, because it has already seen good performance in the first half of this year and expects the Euro 2008 soccer tournament and the Beijing Olympics to boost its performance. Sony expects to see growth in all major categories: TVs and laptops, camcorders, digital cameras and audio systems.
Sony's marketing plan for the Bravia is to attract first-time LCD TV buyers and consumers who want a separate TV in their bedroom by introducing 20-inch models in five colors, and to tempt current LCD TV owners with new 40-inch-plus models with Full High Definition (Full HD) technology.
General Manager for the consumer marketing group said smaller models still made up only a fraction of the whole LCD TV market in Thailand and no competitor had focused on these models with stylish design for personal use. Sony expects such models to make up 10 percent of Bravia's sales this fiscal year.
Meanwhile, after seeing demand for its 40-inch-plus LCD TVs, the company decided to upgrade the category by introducing Full HD technology in all such models. It expects the large TVs to increase their share of overall sales from 20 to 25 percent this fiscal year.
For other products, in the Handycam category, Sony recently launched a new model made from titanium that it claims is the slimmest, smallest and lightest in the world. Sony also plans to offer Cyber-shot digital cameras in a wider range of colors and with a new "Smile Shutter" function that works only when it spots smiling faces. As with its digital cameras, Sony's Vaio laptops will now come in a range of colors after a survey last year found that 70 percent of users preferred colored models to the traditional black.
Managing director of Sony Thailand said the 1.3-billion baht marketing budget will be spent on TV, magazine, newspaper and point-of-sale advertising, as well as joint activities with business partners and road shows. Sony will also improve the product displays at its outlets nationwide.

The battle of Fruit juice heats up

May 2008

In this hot season, almost ten new products from fruit-juice manufacturers have been launched into the market, among them are Tipco Cool Fit, San Miquel Mocktail, HAP and Malee Juice Mix Cool Max.

Since early April, most fruit-juice firms have set aside marketing budgets worth 300 millions baht to launch new campaigns, products and packages. Three newcomers have also announced they are entering the arena.
The 7-billion baht fruit juice market, tough competition is expected among new players while veteran manufacturers are expected to fight for market share.
In this hot season, almost ten new products from fruit-juice manufacturers have been launched into the market, among them are Tipco Cool Fit, San Miquel Mocktail, HAP and Malee Juice Mix Cool Max.San Miguel (Thailand), a giant from the Philippines, is launching a new fruit "mocktail" called "Oops! Mocktail". It categorizes the brand as a middle-end fruit-juice product, being 15-per-cent fruit based. It will introduce four flavors: Blue Angel, Nave Green, Orange Killer and Poison Rose. The company will invest 70 millions baht to build awareness among customers aged 13 to 25 in its first year of launch. San Miguel aims to capture a 5 to 10-per-cent market share in the middle range market, which is worth 450 millions baht.
TAC Beverage, a player in the green tea market with its “Zenya” brand, has launched a 20-per-cent fruit juice called HAP, which targets teenagers. TAC has allocated 20 millions baht to market its HAP in the first year.
Launching the brand is not only a strategic play to tap health-conscious consumers but also to maintain a strong sustainable youth market. TC Pharmaceutical Industry, a major player in youth market selling “Red Bull” energy drinks and “Puriku” white tea, will be launching a 15-per-cent orange juice drink called Fit For Fun at 15 baht a bottle. The firm has imported machines from Germany to make the drink.
With the new competition, old players will need to work hard to keep away rivals. Some players are trying to use a more creative approach. Malee Drink is launching Malee Juice Mix Cool Max as a cooling drink that uses fruit juices. The brand has a 15-per-cent fruit blend and carries three flavors, Cooling Red, Cooling Blue and Cooling Orange. It also target customers aged 15 to 25. Malee has a marketing and advertising budget of 60 millions baht. It is seeking to capture 11 percent of the market or 1.3 billions baht in sales.
Tipco Foods (Thailand), the big fruit-juice brand will launch Tipco Cool Fit, which has less than 25-per-cent fruit juice content, starting with a lemon flavor drink. Its 30-million baht will spend on advertising and another 20-million baht marketing budget will target convenient store and shops.
Pepsi-Cola (Thailand) Trading will also launch a new drink with returnable bottles for its lower-than-25-per cent orange juice called Twister. Pepsi will sell Twister at 10 baht per bottle in a move to stimulate buying. It will also use a new advertising campaign called Perfect Balance, which focuses on balancing sour with sweet products. Its ad campaign will cost 40 millions baht. Pepsi's marketing director said the firm was already a major player in orange juice after entering the market two years ago. It aims to expand its market share by using distribution of Pepsi to compete against Splash, an orange juice which is backed by Coke.

Special Report: The Local Hero

April 2008

Today, the value of facial-care market in Thailand is 2,742 million baht, dominated by facial foam 95% and the rest is tonner 5%. The main segments in this market are whitening 27.1% and scrub 13.3%. The biggest share in this market belongs to Pond’s - the no.1 global facial-care brand of Unilever 39.8%. However, the second share is 18% belongs to “Smooth E” – the local brand, and followed by Nevea – the big global skincare brand, who gains 12% share and Garnier with 6% share.

The second position of Smooth E among global brands in facial-care market came from 2 outstanding campaigns; Facial Foam “Love Story” and Facial Foam Scrub “Teen Problems”, but before we discuss about these 2 campaigns, let review a strategy of Pond’s in Thai market.

Global Brand Global Strategy

“One of the most significant marketing challenges we now face is striking the right balance between the global idea and the extent to which it’s adapted to local markets,” said a Global Chief Marketing Executive (CMO) of Unilever. “We always knew that consumers were different, but we just choose to treat them the same,” said CMO.
According to Nielsen Media Research, Pond’s Facial-Skincare product was the No.1 brand in Ad spending, for the last year, Pond’s spent in both facial and skin care almost 877 million baht.


Pond’s advertising strategy always uses the superstar as its presenter and broadcasts with a heavy weight media budget.

Up to now, Pond’s always use a Global platform strategy that determining best combination of global and local activities for competitive advantage. In term of TV advertising, Pond’s also has a platform of 1-2-3 or Problem – Solution (Pond’s) – End result. And in most regional campaign, Pond’s used the same story but different talent which usually a superstar of each country.

Local Brand Strikes Back

After entered the market for 7 years and used the follower strategy with the same pattern of facial-skin care advertising which was 1-2-3 and superstar, Smooth E still followed 3-4 global brands in term of market share. Then in 2005 Smooth E decided to make a big change.

“Our brave client, Smooth E asked us to go after a younger target audience, yet still appeal to existing customers, but not using a celebrity,” Jureeporn Thaidumrong, the founder and executive creative director of Jeh United Thailand stated and then continued that she asked herself what do teenagers and young adults in Thailand have in common? and this subject should be more interesting and convincing than a superstar. And her answer was “Love” but it was not all, she added “Decades ago before DVDs, the classic Thai selling method was free outdoor cinema that sold a product during a show and we brought that back…”

As a result, they created “The Love Story” series of 4 episodes that not only sells but also pokes fun on conventional ‘Beauty’ commercials of most global brands. And the series were promoted as if they were a feature films; one week before launching date, they painted the town with the handbills and newspaper ads promoting the 4 episodes scheduled. And they also promoted the schedule of each episode with radio spots and newspaper ads. The episodes ran in prime time (8:30 pm) on the two most popular channels in Thailand every Friday, Saturday & Sunday from June 24 to August 14, 2005.


Smooth E Facial Foam “The Love Story Series” won Gold Cannes Lions in films and also won the heart of Thai female teenagers. The series composed with 4 episodes of 90 sec. TVC that not only sells but also pokes fun a conventional 'Beauty' commercials of global brands.

After its launch, “The Love Story” series hit the record of “No. 1 Top of mind advertising recall” within 2 weeks with only a 24 million baht media budget, or half of the budget of former No.1 ad recall. Moreover, Thai female teenagers and young adults asked for “The Love Story” series VCD from Smooth E and 250,000 gift sets of product + “The Love Story” VCD were produced. They sold out in 2 weeks.


In terms of brand awareness in the facial foam category, Pond’s had been the strongest player before Smooth E released “The Love Story” in July. The result showed that Smooth E became the winner while Pond’s moved down to the first runner-up and Biore came in third. (See the green line in figure)

After the launch, Smooth E’s sales rose dramatically by 153.33%, the highest sales in its history, and they continued to rise throughout the campaign.
“The Love Story” changed the face of cosmetic advertising in Thailand. Many global brands such as Unilever and P&G were conducting research on Smooth E "Love Story" as a case study.

The Strike Back Continues

Last year, while facial care especially whitening segment was saturated with so many products and consumer confidence was low from politic uncertainty, the scrub segment was encouraged by a big campaign from Smooth E Scrub “Teen problems” under the strategy as follows:

Challenge
During the downturn, Smooth E wants to create a good mood for Thai consumers and at the same time introduce a new facial-foam scrub into the market who leaded by Pond’s and other global brands.

Solutions
Enhance Brand positioning by being a solution of both consumers’ life and facial care problems.
Create an idol of Smooth E, “Big sister - Aoi”, as consumers’ sister. Deliver a key message through a sit-com of 7 episodes with trailer that speaks to the heart of teenagers, while at the same time keeps poking fun at the conventions of standard ‘Beauty’ commercials of global brands.

The Executions


The Smooth E Scrub “Teen Problems” Campaign 2007 composes with; 1 x30 sec. Trailer of 7 episodes and 7 x45 sec. TVCs; Foam, Brand X, Daddy, Materialism, Boring Face, Everyday Use, Again and Again.

Results


During the launch, all 7 episodes were voted by consumers to be Top 10 TVCs reported by Adintrend.com June 25, 2007

• After the campaign launched, Smooth E Sales boosted up over 200%, salesperson reported that at 7-11 convenient store which is the main channel of distribution, had the orders come in daily instead of weekly or monthly as before the campaign ran.
• Consumers love them and request for a new episode, and even create some new stories and posted in consumer webboards.
• Again, “Teen Problems” campaign created “Talk of the town” effect and challenged the pattern of cosmetic advertising in Thailand.

The Local Hero

After these 2 outstanding campaigns, among all global brands in facial-care category, Smooth E is the only local brand that now moves up to No.2 and continues gaining more and more share everyday. The results indicate that Smooth E benefits from its higher consumer awareness than global brands do. And Smooth E enjoys a strong image of rebellion and anti-conventional global brands. In addition, it benefits more not only from customer perceptions of quality but also from perceptions of better familiarity and relationship than do global brands. However, as the global brands with much bigger budget, Pond’s and Nevea may still use their superstar strategy with their huge media budget instead of reviewing the effectiveness of their campaigns. As a result, Smooth E, in Thai consumers’ eyes, will have more clear positioning as The Local Hero with smaller budget who does the opposite and fights against Global Giants, in this scenario most consumers will cheer Smooth E and love to see it become No.1.

Higher rice prices help Thai economy

April 2008

As the world's largest rice supplier, Thailand is expected to export more than 8.75 million tonnes this year, followed by Vietnam, India, the United States and Pakistan.

So far, India has imposed a minimum export rice price of not lower than US$1000 (31,600 Baht) per tonne. Vietnam has issued an export ban due to a climate change problem. Egypt is the latest rice exporting country to suspend rice exports until October this year.
Unlike other rice exporting countries, Thailand will not face a rice shortage problem, thanks to a plentiful rice supply from three to four crops, compared to only one or two of others, said the Commerce Ministry of Thailand Secretary.
As the world's largest rice supplier, Thailand is expected to export more than 8.75 million tonnes this year, followed by Vietnam, India, the United States and Pakistan.
Though Thai consumers fear a rice supply shortage in the country caused by increasing demand in the global market, the Commerce Ministry of Thailand does not plan to raise control restrictions against exports but instead foresees that the high price environment will benefit all parties concerned.
Commerce secretary said that although consumers may shoulder higher rice prices, the price increase will benefit farmers and the overall economy. On average, consumers spend 5 baht for rice a day. Rising rice prices now should only slightly force up spending for rice to 6-7 baht a day, Secretary said.
Rice prices are predicted to climb above US$1,000 (31,594 Baht) per tonne. This presents Thailand with a new challenge. As a result, the government will closely monitor both supplies and exports to shield local consumers.
Commerce secretary suggested that rice exporters should take the opportunity to learn how to bargain for the best price. As the world's biggest rice exporting country, Thailand should create a "Rice Pool" as a cooperative measure for marketing and export. This would increase bargaining power. Currently, the market belongs to rice traders.
However, the overall economy will grow as farmers are the majority population of Thailand. Moreover, as the government has a stockpile of up to 2.1 million tonnes, the domestic market should not be affected by skyrocketing rice prices.
Asked about a pricing trend, Secretary is optimistic that rice prices should remain high and never turn low as in the past. "Inevitably, consumers may face higher rice prices because of high demand for the world's consumption. However, we should enjoy long-lasting benefits from higher rice prices as the major rice supplier," said Secretary. The world will continue to demand higher quantities of rice for consumption while rice plantation areas may be shifted to plant fuel crops. To insure sustainable development for Thailand’s rice plantations and to remain as the world's largest rice supplier, the government will continue to set strategies to increase rice yield and transfer this knowledge to farmers.

FDA warns about Baby Face treatments

March 15, 2008

Two techniques called "stem cell roller" and "derma roller" are not approved as the main devices used in such treatments are rollers equipped with needles that clinicians roll around a customer's face, the clinics require a high level of hygiene in both use of the rollers and subsequent cleaning.

Want to have a baby face again? Planning a visit to a beauty clinic to have those wrinkles lifted? Make sure the treatments offered are not called "stem cell roller" or "derma roller", two techniques that Thai Food and Drug Administration (FDA) has not yet approved due to safety reasons.
Two techniques called "stem cell roller" and "derma roller" are not approved as the main devices used in such treatments are rollers equipped with needles that clinicians roll around a customer's face, the clinics require a high level of hygiene in both use of the rollers and subsequent cleaning. The FDA called a hurried press conference after it found that two popular beauty clinics - Nitiphon Clinic and Vuthi-Sak Clinic - have offered their customers such treatments. Deputy Secretary of the FDA, said the treatments required specific medical devices that the FDA had not yet allowed to be imported as their qualifications are still doubtful.
While the two beauty clinics advertised the techniques as wrinkle removals that boost collagen to create clear, "Baby Faces", FDA said the stem cell roller and derma roller techniques could cause dermatitis and infection on facial skin. FDA was afraid that if clinicians were not aware and hygienic enough, the treatments could spread infectious diseases.
The FDA together with the Department of Health Service Support, which oversees private hospitals and clinics, raided Nitiphon clinics as well as Vuthi-Sak Clinic's after learning that the clinics had posted advertisements about the two treatments on the Internet.
President of the Dermatological Society of Thailand, said there had been no research on the effectiveness and adverse impacts of the two treatments, even the United States FDA has not yet certified the safety of the treatments. He said he was informed that the Medical Council of Thailand had received several complaints from customers who received adverse effects from the two treatments. The president said he had alerted dermatologists who are members of the association across country not to use these medical devices on patients. He said the association would ask the medical council to consider whether or not the use of these devices was in violation of professional medical standards. If these found in violation, users would be punished according to the 2007 medical device control laws.
FDA said the clinic owners and the importers of these devices had violated the Public Health Ministry's ministerial regulations of 2006. Under the law, importers could be fined a maximum of 250,000 baht or five-years' imprisonment or both, and clinic owners could be fined a maximum of 20,000 baht and jailed for six months for falsely advertising the benefits of the medical devices.
However, the owners of the two beauty clinics said they were not informed by the FDA about the case. "Our operation always abides by the law and FDA regulations," both said.

More Consumer Confidence - But later

March 1, 2008

Thai consumers were likely to appreciate the government's tax-exemption package, but it did not mean they would immediately go out and shop. Because in the past consumers has learned to be very careful about spending. The key point is the government must be able to convince consumers to change their shopping behavior, back to their normal spending.

The 42-billion baht tax-exemption package which recently launched will boost consumer and business confidence after a long period of gloom, yet any positive results will be seen for three to six months, says a leading advertiser.
CEO of Creative Juice/G1, Thailand’s leading advertising agency, believes the government's plan will boost advertising 5 percent this year after experiencing the lowest growth in eight years. Growth registered a negative 7 percent year on year in January and February.
Thai consumers were likely to appreciate the government's tax-exemption package, but it did not mean they would immediately go out and shop. Because in the past consumers has learned to be very careful about spending. The key point is the government must be able to convince consumers to change their shopping behavior, back to their normal spending.
Advertising Association of Thailand (AAT) chairman agreed that the tax exemptions combined with the government's mega-projects would indirectly boost consumer spending. This is because enormous jobs will be started, and they do not have to pay tax at the same high level as before. That will leave more money in their pockets.
"We hope the measures will help boost consumer spending in the retail sector. Thus, competition within the industry among retail operators will be very intense, due to more advertisement and marketing activities, which in the end will have a positive effect on the advertising industry," the chairman said.
G1 CEO was even more optimistic that consumers would start to spend more. Thus, advertisers will beef up their advertising and marketing budgets as early as this month or next. "The high-season shopping period and hot season are coming in which beverages, sun-protection cream and the air-conditioning market will become fiercely competitive" he said but he also felt consumers will still want to keep money in their pockets and wait to see the government's stability and performance for a while before deciding to start spending normally again.
However, even without the economic-stimulus package, the advertising leaders have witnessed many advertisers being more active in planning their advertising and marketing strategies with advertising agencies. Both G1 CEO and ATT chairman said companies in the consumer-products sector continued to be major spenders, because they had the main products for daily life. Telecommunications is another expected top spender this year. Media channels that will certainly promise high returns will continue to be popular among advertisers. Most are still traditional media, because advertisers hesitate to use new media channels. As a result, new media channels like digital media would experience slow growth. ATT chairman saw more possibilities for advertisers to spread their spending to marketing activities instead of normal advertising, in order to ensure more impressive returns. Thus, spending will not go into the advertising industry in a normal manner.