CLMV markets offer huge opportunities for Thai brands
Riverorchid Group, a Thai marketing and communication agency specialising in Cambodia, Laos, Myanmar and Vietnam (CLMV), has said advertising spending in the region will continue to grow and play an increasingly important role in brand communication, part
Santiphong Pimolsaengsuriya, chief executive officer and founder of Riverorchid Group, said the combined market value of CLMV was equal to about 75 per cent of Thailand’s gross domestic product.
The annual economic growth rate of CLMV countries is at least 7 per cent, compared with Thailand’s rate of just 0.7 per cent, he added.
In terms of population, CLMV has about 165 million people, around 2.5 times Thailand’s 65 million.
CLMV middle-class consumers will be an increasingly key driver of economic growth in the future, he said, adding that the overall CLMV population would surpass 200 million in the next decade.
“With this expansion, growth in both intra-regional travel and trade is expected to follow suit,” said the CEO.
With 15 years of experience in marketing and communication in CLMV countries, he suggested that communication via television was the key channel for reaching a wider audience in each country.
Riverorchid Group estimates that advertising investment in Cambodia and Laos will see growth of around 5 per cent to 7 per cent within the next three years, while the advertising industry in Vietnam will grow by 10 per cent – and ad spending in Myanmar is expected to double.
Currently, the advertising industry in Cambodia is worth about Bt3 billion a year, while Laos’ ad spending comes in at around Bt1 billion.
Myanmar’s ad sector is estimated to be worth Bt10 billion, and Vietnam’s, Bt30 billion, according to the company.
However, the CLMV marketing expert said marketers should understand the points that were unique to each country in communicating and trading with local people.
For example, in Myanmar, locally produced goods get more privileges than imported products, such as a local brand has to pay only US$250 (Bt8,520) for a 30-minute TV commercial in a prime-time slot, while for an imported brand the cost is $1,250 to $2,500, Santiphong explained.
“Cambodia is also another free market for Thai media and communication firms. Free TV still plays a key role in Cambodian society. People in the kingdom [of Cambodia] still trust goods and products that are advertised on free-TV channels,” he added.
Established in 2000, Riverorchid Group manages 10 companies across five Indochina markets, with clients in the fields of fast-moving-consumer goods, telecommunications and food and beverage business.
The company has more than 300 staff and generates annual income of $30 million. This year, the business targets 15-per-cent growth from its operations in marketing research, media planning, online marketing and shopper marketing, said the chief executive.
