Thai Producer of Danish Brand of Shoes Predicts Even Lower Sales.

Byline: Busrin Treerapongpichit

Sep. 8--The local producer of Ecco brand footwear has said the global economic slowdown will result in its total sales falling below the low turnover target already set.

Kitti Chaiwattanatorn, deputy managing director of Ecco (Thailand), said the company had targeted sales growth of 8 percent this year, but total sales had expanded by only 2 percent since the start of the year. Sales hit 2.1 billion baht last year.

He attributed the downward revision of projected growth to the global economic slowdown particularly in the United States, the company's second-largest export destination. "Normally, our annual sales grow by 10 percent . This year, we have targetted 8 percent because the economic conditions have been unfavourable since last year." Mr Kitti said the sales target was close to that of the Ecco Group, its Danish parent, so the below-target growth applied to both firms.

The company had tried to accelerate sales since the second quarter by freezing prices while its competitors lined up to raise prices due to higher production costs, particularly for shoes made from cow leather.

He said that as sales had begun to gain momentum in the second half, he was confident that annual sales would not be too far below the target.

Mr Kitti said he did not believe the company's decision to peg product prices was a main reason behind the improved sales. "The apparent turnaround might result from the fact that people are back to spending again after the panic over economic woes early this year."He forecast the firm would return to double-digit growth next year.