Q: What is the current state of the Thai gifts industry?
A: The Thai gifts and premium industry is growing vigorously at the moment. The industry has an estimated yearly value of US$10billion with a promising growth rate of 8 – 10%, which is forecast to continue for the years to come.
In terms of the industry size, there are currently over 600 Thai manufacturers specialised in giftware, employing up to 300,000 workers. According to the TGP’s estimate, 80% of this skilled labour force is working in the nation’s small and medium enterprises (SMEs).
As for the export markets, the United States is definitely on the top of the list. Gift manufacturers prefer doing business with the US not only because of its enormous market size and growth potential, but also due to the fact that Thai gifts enjoy zero import tariff there. The second-largest market for Thai gifts is Japan, with Europe – particularly the United Kingdom and the Scandinavian countries – coming in at a close third.
Q: What are the qualities that set Thai gifts apart from other contenders in Asian region?
A: Nowadays, Asia as a whole is widely-recognised as the world’s manufacturing base. Competition from our Asian counterparts has become extremely tough. To emerge on top of the pack amid this stiff market situation, Thai gifts suppliers must take on a distinctive market positioning.
The biggest edge for Thai gifts is the blending-in of unique cultural elements in the design. Thai manufacturers are working hard to come up with distinctively unique designs by embedding Thai cultural images in gifts. In a way, Thai gifts are very much related to the country’s all-important and ever-thriving tourist industry.
Thai suppliers are dedicated to adding value to their goods. One tried and true strategy is to tell the buyers the stories behind the products. As an example, I heard a case that a Thai manufacturer specialising in bronze souvenirs have secured big orders for his products, simply by sharing vividly with the buyers about the exotic story behind the images of Thai folklore itched on that particular range of products.
Our trustworthy product quality is another recognised strength. Products made in Thailand have built up a reputation as those of high quality. Buyers are generally willing to pay a higher price for top-notch products with guaranteed quality.
The relatively smaller size of the Thai manufacturers also gives them a higher degree of flexibility. As the majority of Thai gifts makers are SMEs, they can perfectly cater for smaller orders without compromising the bottom line. It also happens that a group of SMEs come to form an alliance to work together on the same project, meeting the big buyers’ needs and gaining mutual benefits at the same time.
Q: What are the Thai government and the TGP are doing to boost the Thai gifts industry’s standing in the international market?
A: The Thai government has always given its 100% support to the local gifts industry, particularly the producers of handicrafts in the rural and remote areas. In 2000, the One Tombon One Product (OTOP) initiative was launched to offer solid help to the producers in remote areas to export their products to the world. Under OTOP, one product is selected from each village in Thailand for export to the world. Though costly, it is a resounding measure that helps build the local economies and bring over 10,000 uniquely-designed handicrafts to the world, raising the exposure of the Thai products in the global market.
To ensure long-term market success, we must continue to upgrade our gift items and offer something special to capture the buyers’ attention. Missioned to help achieve this goal, the TGP is currently running a series of workshops to assist the manufacturers to effectively market their products and add extra value to their gifts and premium products.
Furthermore, a purpose-built TGP showroom is set up at the Thailand Export Market – a special showcase for all types of Thai exports – to display the latest innovations by TGP members. International buyers can visit the downtown exhibition centre in Bangkok at any time, as the Thailand Export Market is not limited to just a few show days, like most trade fairs. The TGP displays are updated regularly to ensure the visitors always find a fresh new range of products there.
Given the growing importance of the Internet in the sourcing habits of international buyers, visitors at the Thailand Export Market showroom can also access the online database of TGP members via the PC terminals. This web-based database operates similarly to some of the online exhibitions or sourcing portal websites. Buyers can conveniently browse through the latest products and contact the manufacturers to make instant enquiries.
Finally, through the TGP’s website, http://www.thaigifts.or.th, global buyers can grasp the latest best Thai offers and to get in contact with the suppliers directly.
Q: What are the main challenges facing the Thai manufacturers?
A: I think our lifestyle and cultural habits are mixed-blessings for Thai business. While our culture has played to our advantage in terms of product design, Thai people’s care-free lifestyle and relaxing culture do not train the people to be aggressive enough in today’s highly competitive market. This will become a disadvantage to hinder the growth of the Thai gifts industry. We need a more competitive in our mind-set.
Next, as the majority of our manufacturers are SMEs, it is quite difficult for them to vest ample resources into advanced product research and development. While all Thai gifts producers hold product safety and quality to the highest regard, we must work together to share the costs and to engage in collaborative efforts to upgrade our products to win over the markets.
Finally, as long as we cannot afford to offer prices as low as some of our competitors, we must put our utmost effort in up-keeping the uniqueness of Thai products and adding product value. I see that Thai gifts have now struck the right balance between cost and quality. International buyers are getting the highly-distinguished and value-for-money gifts and premium items from Thailand.
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