Manufacturers and importers of fashion and luxury products have felt a big impact on sales performance from the closures of major shopping malls in the area near the Rajprasong intersection, and from the resulting plunge in consumer sentiment, caused by the red shirt anti-government demonstrations, which have rocked Bangkok's major shopping district since the beginning of this month.

Many of the firms have adapted their business strategies to offer products directly to high-end shoppers.

Boonkiet Chokwatana, president and CEO of ICC International, a manufacturer of many brands of apparel and cosmetics such as Arrow, Wacoal, BSC, Elle, Essence, Lacoste and Guy Laroche, said the impact on the firm of the red-shirt demonstration in the Rajprasong area was mitigated by the fact that the company has many other retail outlets both in Bangkok and major provinces.

The major shopping complexes like CentralWorld, Gaysorn, Amarin Plaza and Siam Paragon have temporarily closed operations.

"However, the unrest, which has hit many areas of Bangkok, particularly on Silom Road, will heavily impact the sentiment of shoppers, who are not in a shopping mood," said Boonkiet.

He took a philosophical attitude towards the current political problems.

"From a business perspective, I would like to see this issue settled quickly; I cannot say what the government should or should not do to solve the problem," added Boonkiet.

"I myself strongly believe that he who has ill intentions toward the country will be doomed sooner or later. Dhamma always defeats vice," he said.

Orand Puipunthavong, vice president of PP Luxe, an importer and distributor of luxury fashion products, including Emilio Pucci and Loewe, said the two brands are only sold at retail shops in major malls in the Rajprasong intersection like CentralWorld, Gaysorn and Siam Paragon.

The closure of those shopping complexes due to the red-shirt demonstration since early April had severely impacted the company's performance, he said.

"Our sales have dropped dramatically by 80 per cent so far this month, compared to a normal sales period," said Orand.

He said the company had adapted its sales strategy by making direct approaches to regular clients, who would be presented with details of the new summer collections of luxury brands as a method of generating revenue amid the Rajprasong crisis.

At the same time, the company is also negotiating with The Mall Group to lease retail space at Emporium Department Store.

"Normally, each collection of fashion goods has a selling season of between three and four months. For example, the summer collection's selling season will end in June. After that, we have to discount the products," he said.

Orand said PP Luxe had kept the Emilio Pucci and Loewe companies updated on the situation and Thailand had requested the brands to extend their credit terms.

The company was also negotiating with them to revise downward the number of items in its orders for the coming fall and winter seasons.

PP Luxe earlier targeted its overall sales to increase by between 10 per cent and 15 per cent this year.

However, the company is not confident of achieving the target, said Orand.

Krist Chatikaratana, managing director of Cortina Watch (Thailand), the operator of Cortina Watch boutique shops, said the company had three shops - one each at the Amarin Plaza Building, CentralWorld and Siam Paragon.

So, for the time being, it cannot sell the luxury brand timepieces.

Like PP Luxe, Cortina Watch has contacted existing clients directly in an effort to generate sales amid the crisis.

He said that if the political problems continue much longer, the firm would face a cash-flow problem as the company faces expenses such as rent and salaries.

Krist added that the company planned to organise a special sales event at its shop in Siam Paragon as the leasing contract with the shopping mall expires in May this year.

Thanasut Chiu, export and marketing manager of MBP Leather Industries, the manufacturer of Albedo and Jay Chiu leather brands, said the company was lucky as it had shops in many shopping malls outside the affected area and had been able to transfer employees to other branches.

The company operates 38 shops in Bangkok and nearby provinces.

Some shops are located at CentralWorld, Central Chidlom and Siam Paragon.

He said the company's sales this month had dropped significantly by between 30 per cent and 40 per cent compared to normal months.

Sales from shops in the Rajprasong district normally account for 40 per cent of the company's total revenues.

Luckily, the firm also has a lively export business, which is still going quite well, so it still anticipates a growth in revenue this year.

Thanasut said the company was planning a promotional campaign to stimulate shoppers' spending at other branches that had not been hit by the political problems.