The Hindu Business Line : Shopper’s stop

The Indo-Thai relationship goes a long way, says one promotion line. Old ties, explains another. Karmic bond, claims another one. But it’s surely the B2C platform that’s driving the newest link between the two Asian economies. Thailand is all set to tap into middle-class India’s two latest fancies: holidaying and shopping. With the launch of the Bangalore-Bangkok Nok Air’s ‘Shopper’s Airline’ flight, the first connection has been e stablished. The second comes on board Nok Air, when passengers, triggered by the new retail wave, are offered goodie bags containing discount coupons from high street brands housed at Siam Paragon, Bangkok’s ‘shopping phenomenon ’ and Asia’s largest mall.

Nok Air’s inaugural fare of Rs 9,999 (for a round ticket from Bangalore) is all it takes to walk into Bangkok and the 550,000 sq mt mall, says the airline’s enthusiastic CEO Patee Sarasin. That is, at least till October this year when the inaugural fare offer will close. Eagerness to build ties with Indian visitors is perceptible among all concerned. “Bangkok is turning to India for ‘quality tourism,” says Kriengsak Tantiphipop, Chief Marketing Officer, The Mall.

The Mall, along with Siam Piwat, are two of the most prominent real estate developers in Thailand who have jointly promoted the continent’s largest mall. It houses the world’s top-notch brands, including Hermes, Versace, Gucci, Patek Philippe, Mont Blanc and Cartier.

But how does Nok Air plan to catch travel-happy Indians after the 45-day inaugural offer fare of Rs 9,999 expires? Even after the inaugural fare offer is withdrawn, Nok Air will still be about 20 per cent less expensive than existing airlines flying to Bangkok, contends Rajiv Bhatia, General Manager India, Nok Airlines Ltd. This, he hopes, will make Bangkok and Siam Paragon top tourist destinations for Indians this year.

Patee Sarasin, CEO, Nok Air, is excited about the India entry of the airline and the positioning it has taken. “This is the first time an airline is dedicated to shoppers. This initiative not only benefits Nok Air passengers but also projects Bangkok as the world’s most popular shopping tourist destination, which is in line with the initiative of the Bangkok Metropolitan Administration.” But why Bangalore? “The city is the country’s IT capital and obviously people there have resources to spend in world-class malls,” says Patee. But of course, Nok Air, will not stop with Bangalore. Having acquired landing rights in Hyderabad, Chennai and Mumbai, Nok Air’s next hop will be to Chennai in October this year, followed by other destinations, he says.

If shoppers are the target customers, how would Bangkok compete against Dubai, traditionally India’s shopping destination? The answer comes in unison: Siam Paragon. Set in 21 acres of land in Bangkok’s main streets, Siam Paragon is a shopper’s delight, especially for travellers coming from a country on the threshold of a retail revolution: Over 300 brands of apparel, jewellery, accessories, furniture, electronic goods and even automobiles housed in six floors of luxury. Categorised into luxury, fashion, lifestyle, leisure, technology, living, divine dining and entertainment, Siam Paragon is perhaps Asia’s answer to New York’s Fifth Avenue or Bond Street. “But we’re much more than fashion and lifestyle,” emphasises Tantiphipop.

The 10,000 sq mt Ocean World at The Explorium has over 30,000 marine creatures, a rain forest, a touch pool, an ocean amphitheatre, a 4D theatre and a shark shop. Siam Paragon also has music and dance schools, language schools, sports clubs, a cookery school and a dental school. The entertainment zone has a magnificent opera with 1,600 seats, a 38-lane bowling club, the Cineplex with 14 screens, an I Max theatre, a convention hall and 12 Karaoke rooms. For holidaying foodies, the gourmet market is a delightful marketplace of exotic fruits, vegetables, meat, poultry, dairy, frozen foods and speciality shops where one can buy wines, ice-creams, tea, flowers and cigars or walk into any of the restaurants offering Thai, Chinese, Italian, fusion, Japanese, Mediterranean cuisines.

For those worried about getting lost in seven floors of glitz and glamour, Siam Paragon has ‘ambassadors’ who facilitate and guide customers while they shop.

The mall also offers an escort service to accompany visitors on a tour of the complex because it takes about four days to cover the entire mall store-by-store, explains an ambassador.

Siam Paragon records a footfall of about 100,000 people a day running up an average bill size of $500, with some of them spending close to $2,000 on top global brands. “And about 25-30 per cent of these visitors are Indians,” says Tantiphipop. Even with the retail mania catching up with Indian families, brands like Hermes, Gucci, Hugo Boss, Armani and Rolex are still outside the reach of most Indians. So how is Siam Paragon hoping to tap into Indian families travelling in a low-cost airline and staying in budget hotels? “You’d be surprised at the Indian’s shopping lists and we’re hoping the money they save on the air fare would be spent here,” quips Tantiphipop. But revenues at Siam Paragon come from other floors too, he explains. The mall has several mid-level brands too and most Indian pockets can easily afford these. “Shopping is just one aspect of the visit here,” he says, pointing to the I Max theatres, the Explorium and the food courts.

With Indian retail sector on the verge of a major revolution, will Siam Paragon consider stepping on Indian soil soon? “Not immediately,” says Tantiphipop, though some Indian real estate developers have expressed interest in a joint venture with The Mall Group. “We may give our know-how because we believe we are best at mall development,” beams Tantiphipop, as he watches hundreds of shoppers hopping onto escalators in what he calls the “Jewel of Asia.’

More Stories on : Strategy | Brands | Airlines

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Shopper’s stop

Getting inside Wal-Mart

Through the customer’s eyes

Set to smell success

Some business, more showbiz

The colour of branding

A ballet of connections