Makro Eye Global Food Leadership with Focus on Innovation and Customer Experience

 

CP AXTRA Public Company, an operator of leading wholesaler and retailer “Makro” and “Lotus’s”, is setting its sights on becoming a food leader in Asia.

 

Fuelled by razor-sharp insights into ever-shifting consumer appetites and an unwavering passion for inventive thinking, the company is rewriting what it means to leading in modern food retail.

 

Tanit Chearavanont, CEO of Makro Thailand and Chief Commercial Officer of CP AXTRA, has unveiled a sweeping blueprint designed to turbo-charge Makro's competitiveness, both at home and internationally.

 

“Shoppers no longer tolerate ‘good enough’,” Tanit said. “They demand retail moments that surprise, nourish and delight, whether they’re browsing a vibrant produce aisle or tapping ‘buy now’ at midnight. Makro is transforming itself to meet that hunger for discovery at every turn.”

 

Over the past two years, Thai consumers flocked to fresh, flavor-packed ready-to-cook (RTC) and ready-to-eat (RTE) dishes.

 

Makro’s response is a wave of store revamps that swap transactional shelves for sensory playgrounds, while a chef-driven pipeline of chilled, frozen and ambient innovations brings restaurant-quality convenience to every kitchen.

 

Economic headwinds have only heightened shoppers’ value consciousness.

 

“Our job is to ensure that customers’ money stretches further that it did before, without every compromising taste or trust,” Tanit said.

 

A notable acceleration in online shopping among Thai consumers, faster than some ASEAN counterparts, has also shaped Makro's strategy.

 

"Thai customers nowadays are truly omnichannel, buying both online and offline," Tanit explained.

 

 

This understanding underpins Makro PRO's success, which, as confirmed by Euromonitor International, became Thailand's number one grocery e-commerce platform in 2024.

 

 

Highlighting Makro’s Ambition to Become a Food Destination

Makro reaffirms its commitment to becoming a comprehensive food destination, showcasing an expanded range of fresh food products, dry goods, and a growing selection of RTE and RTC items.

 

A key differentiator for Makro is its "Chef’s Club by Makro" initiative, a platform designed to co-create culinary solutions with professional chefs and foodservice operators.

 

This club features a "Chef Panel" which rigorously vets nearly every product before it's selected for sale.

 

"If we don't have a Chef Panel or real chefs helping us select products, it's like we don't truly understand the reality of HoReCa," Tanit emphasised, underscoring their dedication to meeting the needs of the hotel, restaurant, and catering industry, as well as consumers.

 

 

 

Exclusive Brands and Co-Branding for Elevated Offerings

Makro is also expanding its portfolio of exclusive brands, bringing top-tier international products to Thai consumers and businesses.

 

This includes Barilla from Italy, the world's number one pasta brand; Carbonell, Spain’s leading olive oil brand; and Haday, China's top seasoning sauce. 

 

"We’re curators as much as retailers,” Tanit said. “Every label we bring in must raise the bar for flavor, authenticity and value.”

 

Further enhancing its offerings, Makro is super-charging its 36-year-old ‘aro’ brand. Strategic co-branding with trail-blazing names like Yamamori and Pum Pui fuses Thai culinary DNA with international know-how, creating products primed for export to nearly 10 markets.

 

 

"The 'aro' brand has been with Thai society for a long time,” said Tanit. “Today we’re giving it wings to carry Thai taste around the globe.”

 

 

Owned Brand Strategy: Understanding the Modern Consumer and Driving Value

Makro's owned brand development revolves around a deep understanding of its diverse customer base, including a stronger focus on the younger generation.

 

"We need to truly understand what Gen Z wants, because in the future, Gen Z will be both consumers and new entrepreneurs," Tanit explained.

 

Value for money is another critical aspect, especially given the current economic climate. This translates into offering larger pack sizes or multi-packs to ensure customers feel they are getting true value.

 

Convenience, particularly in RTC and RTE products across chilled, frozen, and dry categories, is also a significant driver. Makro plans to collaborate more extensively with chefs, even featuring 'aro' frozen products endorsed by celebrity chefs.

 

In a move to support the food service and HoReCa industries during challenging economic times, Makro is developing a programme akin to "riding out the economic storm together" – supplying HoReCa clients with high-margin, chef-formulated dishes that drive traffic and revenue, while delighting diners with fine-dining flair at accessible prices.

 

“Taste trumps everything,” he said. “It a dish doesn’t thrill the palate, you don't sell it."

 

 

Evolving Brand Identity and Digital Engagement

A bold packaging makeover now sees the 'aro' brand in gold and blue packaging in addition to the traditional red. Gold signifies premium products at good value, while blue represents modernity and loyalty.

 

"The new color scheme signals our promise to stay loyal to Thai consumers, while stepping confidently into the future,” Tanit said.

 

Makro is also embracing digital marketing, including viral marketing and increased use of platforms like TikTok, to connect with modern consumers. The company has even ventured into offering "mystery boxes" of popular items like Stitch merchandise, catering to the younger generation's preferences.

 

 

 

Popular Products and SME Partnerships

Among its efforts to improve consumer satisfaction with food experiences, Meiji Soft Serve and Rotisserie Grilled Chicken have proven enormously popular, with Meiji Soft Serve selling over 2 million cones since the beginning of the year.

 

Tanit attributes this success to the constant introduction of new products and flavours, recognising that "Thai customers get bored easily."

 

Makro is actively partnering with SMEs across Thailand, sourcing fresh food, frozen meats, fruits, and vegetables.

 

The company aims to expand these partnerships to include sourcing ingredients for RTC and RTE products, thereby adding value and increasing profits for farmers and SMEs.

 

 

 

Commitment to Sustainability

Sustainability is a core focus for Makro, viewed as a collective responsibility. The brand is collaborating with suppliers and partners to create a circular economy.

 

"I believe that Thailand needs to look at the Circular Economy now," Tanit asserted, citing examples from Japan, South Korea, and Germany. Makro is also launching sustainable products, such as those that require less natural resources.

 

 

Streamlined Owned Brand Portfolio and Ambitious Growth Targets

Including both Makro and Lotus’s own brands, the company has streamlined its owned brand portfolio from over 20 to 6 main brands:

Aro: Makro's flagship food brand encompasses an extensive portfolio spanning fresh produce, prepared meals, and grocery staples. The brand is undergoing strategic elevation through co-branding initiatives and features a premium Aro Gold product line targeting higher-end consumers.

Savepak: Savepak delivers affordable food essentials including frozen items such as chicken nuggets, French fries, and fish products, alongside select household necessities like dishwashing liquid and paper towels.

Momento: This lifestyle brand focuses on non-food merchandise, particularly homeware and textile products. Current offerings include themed items such as Disney-branded flannel blankets, indicating potential licensing partnerships.

NaxNax: Makro's dedicated snacking brand offers an extensive range of treats, from traditional Thai snacks and seafood-based options to international favorites including biscuits, wafers, and nuts.

Cute & Care: Specializing in family-focused products, this brand provides both food and non-food items specifically designed for maternal and childcare needs.

Petz Friend: A comprehensive pet care brand delivering products across all categories of pet ownership requirements.

 

By 2027, Makro aims to lift its Own Brand sales from 18.5% to 25% of total revenue, powered by domestic and international sales.

 

 

Competitive Edge: Supply Chain, Chef Panel, and CEO Involvement

In the competitive landscape of e-commerce, Tanit believes that "whoever does logistics best will win the e-commerce business." Makro is continuously improving its supply chain, utilising 24-hour temperature-controlled boxes, a patented CP AXTRA innovation.

 

A significant advantage for Makro's owned brands lies in its rigorous back-end processes, particularly the Chef Panel's involvement in product selection.

 

Tanit also highlighted the CEO's personal involvement in reviewing every product.

 

"I review every single SKU every week, over 100 SKUs. I taste every single one. If it doesn't pass, it doesn't pass," he emphasised, underlining the company's unwavering commitment to quality.

 

Unlike traditional retailers, Makro is also investing significantly in marketing for its owned brands, including co-branding with chefs, restaurants, and leading regional brands, and leveraging intellectual property.

 

 

 

Future Vision: Food Destination and Solution Provider

Tanit envisions Makro as the ultimate "food destination" where consumers think of Makro when they think of food.

 

Beyond that, he wants to inject "fun" into the shopping experience, transforming Makro stores into engaging spaces, akin to a "Disneyland in the provinces".

 

For entrepreneurs, Makro aims to be a comprehensive solution provider, offering products that simplify operations and save time.

 

"We want entrepreneurs to feel that we are creating products that meet their work needs," Tanit concluded, articulating Makro's vision for continued growth and success in the evolving food industry.