ly chain and surging merchandise and freight costs, it was already accelerating its stock orders at the beginning of March. The company quickly secured supply at pre-existing prices to get it through to the end of the first half without any margin squeeze and with minimal impact on customers. That isn’t the end of the story, though. At the beginning of the third quarter, it will need to review the pricing and availability of all its 25,000-plus SKUs before reordering. The company reported its first-quarter results last month, and it was largely a continuation of its steady growth story. It finished the quarter with 207 stores flung across the majority of Thailand’s 76 provinces and Greater Bangkok, 35 more than a year ago. Operating revenue for the first quarter was up 17.3 per cent year-on-year, to 982.4 million Thai baht (US$30.7 million), keeping the company roughly on track for its targeted 20 per cent growth rate. The gross profit margin rose by a full percentage point to 56.3 per cent, which the company attributed to increased penetration of higher-margin imported merchandise in the sales mix, growth in high-margin categories such as home furnishings, and appreciation of the Thai baht against the Chinese yuan. With the store fleet expanding by almost one-third over the 12 months, and gross profit growth outpacing operating cost growth, net profit rose by 22.4 per cent year-on-year to 191.0 million baht (US$6.0 million). Wholesale affected by slower foot traffic at Platinum Mall Same-store sales grew by 3.8 per cent in the first quarter against a tough base-year hurdle of 7.9 per cent. Aside from its retail stores, Moshi Moshi also has a presence in the giant Platinum Wholesale Mall in downtown Bangkok. This didn’t do so well in the first quarter: the decline in Middle Eastern tourist traffic and accessibility issues because of construction in front of the mall resulted in a 9.1 per cent decline in operating revenues from this source. Thus, wholesale penetration of revenues dropped from 13 per cent a year ago to 10 per cent now. Moshi Moshi’s store fleet expansion has been running out of headroom as it establishes a presence in most of Thailand’s high-quality regional and community malls. Its major landlords are Central Pattana, its sibling company Central Retail, and Berli Jucker’s Big C, each of which provides outstanding real estate platforms. However, there are only so many to go around, and Moshi Moshi is looking for alternatives. One of them is a standalone (non-mall) format that serves specific target markets such as university campuses. The company has gone quiet on overseas expansion, despite having made frequent references until about a year ago to exploring potential beachheads elsewhere in Southeast Asia. New product pipeline continues to gush Moshi Moshi sells lifestyle products across 13 merchandise categories – home accessories, bags, stationery, cosmetics, fashion accessories, beauty, apparel (mainly T-shirts and hoodies), snacks, toys, plush toys, IT gadgets, pet accessories and “Others”. It currently offers more than 25,000 SKUs and introduces 1,000 new ones each month. Maintaining a steady flow of new products that are design-rich but accessibly priced is a key competitive advantage. Outlook for the rest of 2026: more stores, more SKUs, younger customers Moshi Moshi’s target is to open another 35 net new stores in 2026, of which six had already opened by the end of the first quarter. At least five of the 35 will be in the freestanding format to better reach target customers in non-mall locations. Aside from the expansion, the company is upgrading existing mall stores through renovations, expanded footprints, relocations and improvements to product displays. Nearly US$7 million has been budgeted for new stores and upgrades to existing ones, and a further US$7 million has been earmarked for the construction of a second warehouse. Moshi Moshi also wants to get deeper into the pre-teen market. Its main customer age group is currently 13–35, but management wants to expand that bracket by building brand awareness among children. Since many of its products are IP-licensed, it has the merchandising weaponry to appeal to the entry-level demographic. The macro and competitive environment: not the best However, unlike a few months ago when talking to investors about its 2025 results, optimism about the external environment has largely evaporated. Three months ago, it was talking up the economy, the potential for another tourism boom and government stimulus for domestic consumption. Of these, only the last is left standing, with the tourism boom now looking more like a slump, forecasts for economic growth softening, rising costs for fuel, freight, logistics and goods, and supply chain disruptions. Moreover, the company noted that tourist arrivals are increasingly skewed towards festive occasions like Songkran, rather than the steady, year-round growth to which retailers have become accustomed in recent years. Moshi Moshi is also sounding the alarm about competitive pressures, noting that interlopers in its designer variety category are becoming more numerous. As the company’s investor presentation noted: “Thailand’s social commerce market is projected to grow by 9.6 per cent to reach 15.2 billion US dollars in 2026, with e-commerce expanding rapidly across fashion, beauty and lifestyle categories, while the government accelerated consumer protection regulations and support measures for Thai operators on online platforms.” Besides that, Chinese retailers are proliferating around Thailand, and there are interlopers from elsewhere in Moshi Moshi’s category, such as Oh! Some from Singapore, which has opened its first store in Bangkok at Samyan Mitrtown, on the fringe of the Chulalongkorn University campus. Still, Moshi Moshi’s leadership is confident it can withstand the pressure, and with more than 200 stores in high-visibility locations, it has a big head start on its competitors. Further reading: How Moshi Moshi plans to outpace rivals with new formats, faster store rollout