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   BUSINESS NEWS

HEADLINES [click on headline to view story]:
BEC raises its TV commercial rates

Microsoft Thailand to launch Windows 2000

HP waits to launch new home PCs

BMW sees significant sales in Thailand

Jetro confident better Japanese economy will result in higher

KFC steps back from E-commerce

CP develops Thai fast food franchise to hit international market

BEC raises its TV commercial rates

Joins with TVB Hong Kong to expand to ASEAN market

Chatchai Tiamtong, the Finance Director of BEC World, or TV3, said this year TV3 will change its price structure and increase normal time TV commercial rates by 25% - from 160,000 baht per minute to 200,000 baht. Commercials during prime time will cost 10% more, from 300,000 baht per minute to 330,000 baht. The move is in response to the recovering economy in Thailand.

According to market research on TV media, TV3 is the country’s most popular public TV channel, with an average 40% share of the audience, or about 20 million people out of 55 million countrywide. The total value of the public TV industry is about 20,000 million baht. TV3’s share of the revenue is 3,000-4,000 million baht.

Chatchai continued, saying that, “at the moment TV3 is studying the possibility and feasibility of expanding our TV business into Vietnam, Myanmar and Cambodia by making a joint venture with TVB Hong Kong.” First investment has been made in Myanmar.

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Microsoft Thailand to launch Windows 2000

Peerapong Ersoontornwatta, Managing Director of Microsoft Thailand, announced Microsoft is ready to launch Windows2000 in Thailand. The grand opening is scheduled for 25 February at the Sirikit National Convention Center.

Microsoft says that the new Windows2000 operating system will ensure users the highest security, as the new system complies with the US government’s encryption regulations.

Windows2000’s new security system will support e-commerce safety through the use of SmartCard technology.

“Microsoft intends to provide the highest security to users. As we become more involved with e-commerce development, we become more concerned with increasing the security of our consumers’ data,” Peerapong said.

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HP waits to launch new home PCs

Waiting for Windows 2000 to become widely used

Prasert Jaroonpaisarn, Marketing Manager and Retailing Products Manager of Hewlett Packard Thailand, said this year is not the right time to launch new marketing plans for home-use PCs, due to a “localization” problem in pre-installed programs which need to be changed into the local language.

“The market for home PCs this year is still uncertain. We expect next year will be the right time to jump into the market. The main reason to wait is the localization problem. However, the newly launched Windows 2000 will solve this problem because by then all PCs will have the same language standard,” Prasert said.

The official release of Windows 2000 will be on the 25th of February at Sirikit National Convention Center. “I believe that Windows 2000 will become very popular among PC users by the end of this year. In the future, all PCs will be shipped with Windows 2000 pre installed, just like Windows 95 and 98,” Prasert added.

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BMW sees significant sales in Thailand

BMW’s international marketing management said sales will significantly increase this year in Thailand, from over 1,300 to almost 2,000 cars, and in South Korea from a little over 350 to over 1,000 cars.

BMW’s Marketing Management strongly believes that BMW’s sales in Asia will increase this year, recovering from the sharp drop experienced during the economic crisis over the last 2 years.

Asia is the highest-growth automobile market in the world, and BMW’s sales in Asia are 10% of its worldwide sales.

BMW has invested USD25 million in its first Asian car assembling factory in Thailand, which has an annual production capacity of 10,000 cars.

BMW foresees an even larger market expansion in SE Asia after AFTA is fully activated in 2018.

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Jetro confident better Japanese economy will result in higher exports from Thailand

Takachi Tsuchiya, Jetro President, said the Japanese economic situation is on its way to recovery as a result of financial support from the Japanese government. “It is a good opportunity for Thai exporters to gain more export values to Japan, but products must meet with Japanese standards,” Takachi said.

Thailand’s Department of Export Promotion said Thai products being exported to Japan are both increasing and decreasing. Products showing an increase are computer parts, automobiles, construction materials, furniture and costumes. Products with decreasing export value are garments, sugar, chemical products, watches and gypsum.

Thai exporters are advised to focus on quality products to meet with Japanese standards, lower costs, and on-time delivery. Knowledge of the Japanese language is crucial, as is knowledge of Japanese culture.

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KFC steps back from E-commerce

KFC International Thailand launched its on-line delivery site in October 1999. However, the site didn’t draw sufficient on-line orders to meet with its sales target, so KFC finally closed down its on-line restaurant in December last year after only 3 months of operation.

“We found that most of the Internet users got connected from their office, school or Internet caf้,” said Suwanna Ussanajit, Marketing Manager of KFC International Thailand. “Order and delivery places were normally different places. It was difficult for us to make delivery and collect the bills. However, we could say that KFC was successful, in a way, as to study this consumer group.”

Last year, KFC Delivery had growth rate of 7-10%. It is estimated that the growth rate will reach 10% this year due to the many new competitors entering into the market resulting in a larger consumer base.

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CP develops Thai fast food franchise to hit international market

The food products policy of Charoen Poakaphan from now on will focus on developing Thai franchise brand names to meet with international standards and promote them into the world market in the near future.

Presently, CP is marketing Chester Grill Fried Chicken and planing to expand locally from 65 chains to 100 chains in the near future. CP has received many contacts from foreign businesses showing interest in buying franchises to operate in their countries. Countries showing high potential are Malaysia, Singapore, Bangladesh and North Africa. CP has already set up its chain restaurant in China.

CP is at the same time on the way to develop another 2 franchise restaurants. One is a Thai restaurant called Bua Barn (blossom lotus) and another new franchise is under research and development.

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Updated by Chinnaporn Sangwanlek, assisted by Boonsiri Suansuk.