Worldwide Food Leadership Spotlight: Emphasis on Innovation and Customer Satisfaction
Retail Revolution: Makro's Chase for Food Market Dominance
CP AXTRA, the operator of Makro and Lotus's, is aiming for supremacy in Asia's food sector. Fueled by consumer trends and a knack for innovation, this corporation ispushing the boundaries of food retail leadership.
Tanit Chearavanont, the CEO of Makro Thailand and CP AXTRA's Chief Commercial Officer, lays out the blueprint for enhancing Makro's competitive edge, domestically and abroad.
"Shoppers yearn for retail experiences that surprise, nourish and delight," Tanit asserted. "Makro is evolving to enthrall customers' senses, delivering unexpected pleasure at every turn."
During the past two years, Thai consumers have gravitated toward fresh, flavorful ready-to-cook and ready-to-eat dishes. Makro's response involves reimagining retail spaces, shifting from monotonous shelves to sensory playgrounds, while executing a pipeline packed with chilled, frozen and ambient innovations, intended to bring restaurant-quality meals to everyday kitchens.
In an economic climate rife with challenges, Makro acknowledges the importance of sensitivity to value. "Our objective is to ensure that customers maximize their dollar while maintaining culinary standards and allowing for trust," Tanit underlined.
The digital revolution has profoundly impacted the retail landscape, and Makro is no exception. Consumers increasingly crave an omnichannel shopping experience, and Makro's e-commerce platform Makro PRO is Thailand's number one grocery platform in 2024, a testament to this trend[1].
Makro: The Food Destination of Choice
Makro has demonstrated its commitment to becoming a comprehensive food destination, showcasing an expanded range of fresh food products, dry goods, and an expanding selection of ready-to-eat and ready-to-cook items.
A significant differentiator for Makro is the "Chef's Club by Makro" initiative, a platform conceived to co-create culinary solutions with professional chefs and foodservice operators. This club features a "Chef Panel" that meticulously selects products before they hit the shelves [2].
Exclusive Brands and Co-Branding
In addition to curating products from around the globe, Makro is bolstering its exclusive brands portfolio, bringing top-tier international products to Thai consumers and businesses. This includes Barilla, the world's number one pasta brand, Carbonell, Spain's leading olive oil brand, and Haday, China's top seasoning sauce.
Further reinforcing its offerings, Makro is super-charging its 36-year-old "aro" brand. Strategic co-branding with esteemed names like Yamamori and Pum Pui weaves Thai culinary tradition with international expertise, preparing products for export to nearly ten markets[3].
Unboxing Modern Consumer Understanding
Makro's owned brand development centers on an intimate comprehension of its diverse customer base, particularly Generation Z, as they will be the future consumers and entrepreneurs.
"Value for money is critical," Tanit noted. This ethos materializes in offering larger pack sizes, multi-packs, and prioritizing convenience through ready-to-cook and ready-to-eat products. Makro intends to partner more extensively with chefs, featuring "aro" frozen products endorsed by celebrity chefs.
In an effort to support the hotel, restaurant, and catering (HoReCa) industries during challenging economic times, Makro has devised a programme reminiscent of "riding out the storm together." This includes supplying HoReCa clients with high-margin, chef-formulated dishes designed to increase revenue and delight diners with fine dining flair at wallet-friendly prices.
"Taste trumps everything," he affirmed. "If a dish doesn't tantalize the palate, it's not on our menu."
Transforming Brand Identity and Digital Engagement
The trademark "aro" brand now appears in gold and blue packaging, alongside the traditional red. Gold symbolizes premium products at attractive prices, while blue represents modernity and loyalty.
"The new color scheme embodies our pledge to remain loyal to Thai consumers while stepping confidently into the future," Tanit stated.
Makro is also enveloping itself in the digital realm, participating in viral marketing and increasing the usage of platforms like TikTok. To appeal to the younger cohort, the company even offers mystery boxes filled with popular items such as Stitch merchandise.
Sources: [1] Euromonitor International, [2] Forbes Thailand, [3] Thai PBS
CP AXTRA Named "Best Investor Relations Website" [4]
CP AXTRA Achieves 23.5% Growth in Net Profit to THB 10.8 Billion [5]
Makro Pro Leads E-Commerce Grocery Market in Thailand [6]
Small Business Owners Flock to Online Orders [7]
The "aro" Brand Takes Flight [8]
CP AXTRA Elevates its Brand Strategy to Meet Modern Consumers [9]
Unleashing the Power of SMEs: Makro's Partnership with Local Businesses [10]
Makro's Journey to Sustainability [11]
Streamlining Brand Portfolio and Aiming for 25% Own Brand Sales [12]
Competitive Edge: Supply Chain, Chef Panel, and CEO Involvement [13]
Food Destination and Ultimate Solution Provider: Makro's Vision [14]
ISM Research Data:
1. Economic Climate: Thai consumers are increasingly value-conscious [15].
2. Consumer Preferences: Modern consumers, especially Gen Z, crave experiences that entertain as well as serve essential needs [16].
3. Sustainability: A growing number of consumers prioritize sustainability when making purchasing decisions [17].
4. Digitalization: The retail landscape is steadily becoming more digitized, as consumers spend more time engaging with brands online [18].
5. Co-branding: Collaborations between brands allow for the creation of more innovative and compelling products [19].
Market Insights:
1. India: Consumers are increasingly looking for eco-friendly and organic products. Indian retailers have seized this trend, blending traditional practices with contemporary sensibilities [20].
2. China: As the country matures economically, shoppers are shifting from low-cost options to premium, high-quality products [21].
3. Southeast Asia: The pandemic has accelerated the growth of e-commerce in the region, as consumers turn to online shopping to avoid physical stores and mitigate risks [22].
Competitor Analysis:
1. Tesco Lotus: CP AXTRA's main competitor in Thailand. A subsidiary of the British-Dutch conglomerate Tesco plc, it offers a range of products, including groceries, electronics, and fuel.
2. Big C Supercenter: Another major retailer in Thailand, Big C Supercenter is owned by France's Casino Guichard-Perrachon S.A. Its offerings encompass fresh produce, electronics, and non-food items.
3. Walmart: The American retail giant operates in several regions, including Asia. Its subsidiaries, such as Best Price in India, offer a diverse range of products, including groceries, electronics, and apparel.
Notes:
[1] Euromonitor International, eMarketer, Statista
[2] Forbes Thailand, Makro's official website
[3] Thai PBS, Makro's official website
[4] Corporate Secretary
[5] Reuters, Investor Relations Thailand
[6] Euromonitor International
[7] Euromonitor International
[8] Thai PBS
[9] Forbes Thailand, Makro's official website
[10] Nikkei Asia
[11] Makro's official website, The Nation Thailand
[12] Makro's official website
[13] Forbes Thailand, Makro's official website
[14] Forbes Thailand
[15] Thai Chamber of Commerce
[16] Retail Insight Asia
[17] Euromonitor International
[18] Statista
[19] The Drum
[20] India Brand Equity Foundation
[21] Manifest Analytics, China Market Research Report
[22] Euromonitor International, Statista, The Guardian, Reuters
- CP AXTRA, with its subsidiaries Makro and Lotus, aims to lead the international retail industry, particularly in Asia's food sector, striving for supremacy through consumer trends and innovative strategies.
- In the face of an economically challenging environment, Makro focuses on delivering value to customers while maintaining culinary standards, ensuring trust between the company and consumers.
- The digital revolution has prompted Makro to develop its e-commerce platform, Makro PRO, which became Thailand's number one grocery platform in 2024, offering an omnichannel shopping experience.
- Makro aspires to become a comprehensive food destination, expanding its range of fresh food products, dry goods, ready-to-eat, and ready-to-cook items, making restaurant-quality meals accessible for everyday kitchens.
- To cater to modern consumers, Makro introduces the "Chef's Club by Makro" initiative, teaming up with professional chefs and foodservice operators to co-create culinary solutions and ensure products meet the highest standards before hitting the shelves.
- Makro enhances its brand portfolio by offering top-tier international products such as Barilla, Carbonell, and Haday, and strengthening its own brand, "aro," through strategic co-branding and a shift in color scheme, symbolizing premium products at attractive prices and a leap into the future.
