It is undeniable that Thailand's retail industry is facing its biggest challenge in years as private consumption indexes show a clear slowdown amid a sluggish economic recovery and fragile purchasing power.
This aligns with data fromthe Department of Business Development,which indicates that household income is recovering gradually, especially among low- to middle-income groups. Coupled with high debt burdens and living costs, consumers are choosing to buy cautiously, focusing on necessities and value for money.
However, amid this storm, a Thai brand, Mc Jeans, has managed to buck the trend by growing its sales nearly 12% in the second half of 2025 and continuously increasing profits. The company turned the crisis of fewer mall visitors into an opportunity for more efficient sales, despite average foot traffic dropping 13% since mid-2025.
Matthew Kitothan, Chief Executive Officer of MC Group Public Company Limited, which operates fashion and lifestyle retail under the Mc JEANS brand, said
the key secret is integrating AI as the core of managing both offline and online systems, using AI to analyze in-store customer behavior to enhance sales efficiency.
They started piloting this in four flagship stores: Fashion Island, Central Westgate, Mega Bangna, and Future Park Rangsit. The system analyzes store visit patterns and purchasing behaviors to optimize store layout and support sales staff with data-driven insights.
In just six months after implementation, the number of customers visiting stores more than doubled. With more precise product recommendations meeting customer needs, the sales closing rate improved noticeably. Currently, this AI system is used in 41 branches nationwide, with plans to expand to 100 branches by 2026.
Regarding customer relationship management, Matthew added that the company uses AI-Driven Precision CRM to manage and analyze data from about 1.8 million members to enhance personalized marketing communications and product offerings. Most in-store customers are Gen X and Y, about 74%, while Gen Z prefers online shopping.
The AI learns when each customer prefers to open messages and sends communications at those times. As a result, in fiscal year 2026, sales from the CRM member base accounted for about 60% of total sales, up from 40% in fiscal year 2025, reflecting AI's effectiveness in analyzing customer data, increasing purchase frequency, and building long-term brand loyalty.
Additionally, the company plans to launch Virtual Try-On technology for members, allowing them to use reward points to virtually try products online. Initially, customers can try two items, such as shirts and jeans, before expanding to full outfit trials in the future. This is expected to attract new members and increase purchase confidence.
The Asia-Pacific market for Virtual Try-On technology is projected to grow rapidly at an average of 23.7% annually through 2030, becoming a key element in online retail.
"The AI investment does not require a large budget since the company focuses on in-house development with internal teams building upon existing market models. Staff were onboarded and trained to collect basic digital data beforehand, allowing AI systems to be deployed and operational within six months,"
said Noppadon Tangdenchai, Chief Information Officer of MC Group Public Company Limited. He added that another important factor driving Mc Jeans' online sales growth is the efficient management of affiliates or online sales agents, using AI as a key tool to screen and match products with capable agents.
Currently, the brand has up to 130,000 agents adding Mc Jeans products to their shopping carts on TikTok and Shopee, expected to double by 2026. This strategy acts like having sales staff spread nationwide across all platforms and times, without the fixed costs of opening new stores. Mc Jeans currently has 550 sales points and 1,200 sales staff.
Mc Jeans has gone beyond traditional live streaming by creating a full Live Studio at its headquarters, expanding from 4 rooms to 11 in a short time. The most distinctive strategy is O2O (Offline to Online), turning in-store sales staff nationwide into "Live Creators."
Sales staff at Mc Jeans branches do not just wait for customers to enter (PCs) but have been trained and auditioned to appear on live broadcasts from store locations, including malls. Some smaller branches generate live stream sales equal to their regular in-store sales, doubling total branch sales. Overall, the brand streams 160–360 hours daily to ensure Mc Jeans is always visible whenever customers open platforms.
"Success online does not end with orders but with delivering products to customers. Mc Jeans prioritizes 24-hour fulfillment, with warehouse management systems capable of handling 20,000–30,000 orders daily, especially during Double Day campaigns,"
he added. At the same time, the brand pushes market expansion with Same Day Delivery service delivering products within 4–6 hours in Bangkok and nearby areas, a strategy to gain a competitive advantage through speed.
As a result of excellent warehouse management, Mc Jeans achieves a Service Level Agreement (SLA) score of 99%, higher than the market average of 80–90%, reducing cancellation rates to just 1% and building sustainable customer trust.
Thanks to store layout strategies and AI analysis of customer behavior, the average sales per transaction (Ticket Size) surprisingly rose by 5%, increasing from a baseline of 2,000 baht to 5,000 baht per bill.
In the first half of 2026, the company posted total sales revenue of 2.393 billion baht, up 215 million baht or about 10% compared to the same period last year. In the second quarter alone, revenue reached 1.492 billion baht, up 156 million baht or about 12% growth.
Overall, these results reflect the integration of AI into store management, product planning, and systematic member base expansion, enabling customers easier access to Mc JEANS products, selecting items suitable for their body shapes and lifestyles, and enjoying a truly personalized shopping experience.
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