NEW WORLD OF FREE TRADE

FACING A NEW YEAR, AND THE BRAVE NEW WORLD OF FREE TRADE

The Nation : Monday , January 25th, 2010

No one can claim that the year 2009 inspired confidence when it comes to doing business, or even just leading our lives.

Nevertheless, I do believe that, along with the hardship, the economic crisis taught us some lessons about how to cope, survive and adapt to unforeseen change.

Life goes on, despite the uncertainty of politics, the economy, the weather and the changing habits of consumers.

Now, I am negotiating my path - after a rough ride last year (the god of recession spares no one) - toward Valentine's Day and Chinese New Year next month.

My feelings and confidence level are positive relative to the same period last year. At least I know tune at the end of this year.

I believe Thai consumers weathered the recession well, even though we were squeezed into giving up a lot of things, but food, big screen TV, movies, smart phones and mobile services remain successful across the nation. We are still spending, albeit frugally, according to careful choices in terms of categories and brands.

Politically and economically, there is still hope, though the road ahead may be long and winding.

Perhaps this February, your Valentine's Day will be filled with romantic pink. Don't forget your red and yellow roses, though for these are the colours of happiness.

Thanks to the Asean Free Trade Agreement ( AFTA ) the difference now may be that my roses, my watched and the clothes I wear may come from Asean member countries. The grouping has some 500-million-plus inhabitants.

This year, Valentine's Day and Chinese New Year fall with the same week. I wish I had statistics to show me the total spending we can expect on roses and "ang pao" (cash-stuffed red envelopes) in Asean.

AFTA however, is little understood by many businessmen, consumers and the general public.

With its many potential upsides and downsides, AFTA will eventually shape a new era of competitiveness, thereby affecting Thai small and medium-sized enterprises in 2010 and beyond.

Now we must look at marketing and at potential nre consumers, as more brands will be geared toward these 10 markets, thus the target consumers will also be bombarded with more choices. One brand will never fit all. As a result, opportunities arises and so are the threats pertaining to image and prices.

With the Asean + 1 agreement, which brings together AFTA and China, I think the market will offer many more choices to consumers. Marketing executives at SMEs must arm themselves well with knowledge in manufacturing, market segmentation, law and technology.

Assistance from the government and educational institutions will play a major strengthening role. The stronger that Thai brands' image and quality are, the better the chances for our SMEs to not only survive the influx of foreign brands, but to thrive beyond our borders. This is something that will be vital to our economy.

Staying defensive mode will never be enough. Thai consumers have an amazing habit of changing their minds. They are image-conscious and price-sensitive.

Many organisations, particularly big corporations, have been preparing both offensive and defensive strategies for the short, medium and long terms and are making efforts to train new generations of managers and staff to be more competitive.

Needless to say, our consumers are getting smarter and wiser with the aid of technology such as mobile devices and social networking, which have become powerful tools for reaching out to new communities.

So while free trade brings more choices, new skills and technologies will help us find services, brand ratings, and country of origin information. Our brands must be reinvigorated and be at the forefront of consumers' minds.

Kitti Chambundabongse