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Food Industries in Thailand Show Potential Despite Economic Downturn.
Byline: Sukanya Jitpleecheep
Oct. 3--Siam Makro, a cash and carry wholesaler, is placing greater emphasis on capturing business from restaurants and the food industry to balance its sales to grocers which may decline in the future.
President Suchada Ithijarukul said there was huge potential from customers in food and restaurant enterprises because they contributed only 10 percent to the company's sales, compared with 45 percent from grocery stores.
"The food business still has potential and it is not so badly affected by any economic downturn," said Ms Suchada, adding that some grocery stores would have to close in the future, while others would remain customers by moving into the food business.
To serve market demand, particularly the catering sector, the company has increased new product lines such as plastic packaging, freezers, tables, cooking utensils for street food vendors and small toys for traditional family-owned stores to buy for resale.
New packaging sizes have been added and the stores' display format has been rearranged to make things more convenient for customers and to save operating costs.
"If we arrange products to serve market demand and spread our concept among food and restaurant enterprises, sales per transaction will increase while the company's costs will decline with the new display format," Ms Suchada said.
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