IMPACT OF RECESSION ON FIRMS NOT UNFORM

       A look at the expansion plans of two Thai companies demonstrates the varying effects that the recession has had in the Kingdom.
       Better Vision Group, operator of the Hawman chain of optical-goods shops, has been forced to scale back its investment plans, said managing director Pakee Pracharktam.
       The perception of eyeglasses as a necessity for those with vision problems is still largely limited to the Kingdom's large urban areas, Pakee said. Much like books and computers, rural Thais still do not perceive glasses as a necessity, he said. This reality has made the recession particularly difficult for the firm.
       "We opened five or six Hawwan shops in 2007 in line with the rapid expansion of hypermarkets. However, several of these stores, especially those in rural towns, did not see good sales," Pakee said. The company has more than 80 stores at shopping malls and hypermarket branches nationwide.
       After it started experiencing cash-flow problems last year, the compaby decided to delay new investments to focus on existing branches, Pakee said.
       The company has shut down several shops that showed little promise, including outlets in Ratchaburi and Prachin Buri, and some smaller outlets in Bangkok.
       "We have tried to improve the performance of our stores by launching more promotions and staff-development initiatives," said Pakee.
       Under the adjusted-growth plan, the company will only open two or three new stores per year, he said.
       "We will evaluate all investment possibilities, however," he said.
       Pakee said 2009 had brought many negatives, including the continuing of the political unrest from last year and the deadly type A (H1N1) influenza otubreak.
       In stark contrast to the Hawwan chain's experience, Nitipon Group, a leading beauty-clinic operator, is going full steam ahead with its growth plans, setting its sights on the upcountry market, said managing director Nitipon Chaisakulchai.
       "Our Nitipon clinics already cover all prime locations in Bangkok. What we want to do next is to expand the retail network upcountry," he said.
       "We currently operate 37 Nitipon clinics, seven of which were opened in the first half of this year. We see great opportunities to expand our network in the provinces," Nitipon said.
       The expansion of Central Plaza shopping malls into the Northeast, especially in Khon Kaen and Udon Thani, would create new business opportunities for retail tenants in Bangkok-including Nitipon-that want to open upcountry outlets, he said.
       Unlike other businesses, Nitipon said, beauty clinics had proven to be "recession-proof."
       "Amid the economic slowdown, we have not seen any significant drop in demand for beauty clinics' services. Beauty clinics are a part of Thai consumers' lifestyles today, and Thais are still highly concerned about their appearance," Nitipon said.
       The company recently launched several clinics under a new brand, Retouch Laser Centre by Nitipon Clinic. Retouch Laser Centres have opened at The Mall Bangkapi, Future Park Rangsit, Seacon Square and Fashion Island.