I.C.C. International Plc, a distributor of fashion and consumer goods under Saha Group, says it is difficult to predict the economic outlook for the second half of the year due to rapid market changes.
The company anticipates intense competition in the consumer goods sector.
Thamarat Chokwatana, president and executive chairman of I.C.C. International, said for 3-4 months forecasting has become challenging.
The retail industry is likely to mirror the broader Thai economy in the second half of the year, with both facing uncertainty.
Heightened retail competition is expected, though sales growth is possible thanks to promotional strategies, an expansion of the customer base, and the introduction of innovative products.
Prasert Suruttanamethakul, managing director of Lion Corporation (Thailand) Co Ltd, a fast-moving consumer goods (FMCG) producer for brands such as Shokubutsu Monogatari and Systema, said uncertainty is a challenge for all business operators, including in the FMCG sector.
This unpredictable environment is affecting consumer sentiment, making them more cautious with their spending, he noted.
Although global tensions appear to have eased, the company's raw material costs remain 30% higher than before the war, said Mr Prasert.
While consumer purchasing power may recover in the second half of this year or next year, he said it is difficult to predict due to the constantly changing outlook.
Business operators should focus on improving efficiency and managing costs, said Mr Prasert.
"There are no positive signs for the second half of this year," Mr Prasert said.
Thai businesses including Lion have absorbed these higher costs instead of passing them on to customers, he noted.
Personal care products such as soap are expected to be more resilient than other household goods during challenging times, said Mr Prasert.
Emotional factors continue to influence purchasing decisions, as consumers may not necessarily opt for the cheapest option, but instead choose products they feel comfortable with, he noted.
Mr Prasert urged the government to restore consumer and investor confidence through both short-term and long-term measures.
For the long term, the government should invest in transport infrastructure, such as developing the train network to facilitate the movement of people and goods at lower costs.
