Display mode (Doesn't show in master page preview)

18 Jan 2008

Industry

Thai Furniture and Parts: Domestic and Foreign Markets Face Negative Factors (Business Brief No.2101)

คะแนนเฉลี่ย
The situation for Thai furniture and component parts industry in 2008 will need caution; it has been found that risks are more distinctly evident than supporting factors. Interest rates, fuel prices and political stability are key variables that will affect demand for furniture domestically for the foreseeable future as consumers become increasingly concerned about consumption over the long-term, as well as durability and value. Entrepreneurs should apply the price strategies or add value to their products and services for differentiation in the market. Also, the competition has gotten tougher. In foreign markets, it is not easy to recover from a loss of market share. It is expected that growth in 2008 will be sluggish continuing from 2007, remaining static or diminishing 5 percent to an export value of around THB43,000–45,000 million.
The Thai market share in the world market is not over 2 percent, ranked at 21st-25th as a furniture exporter, because the economies of key trade partners, particularly the USA, are decelerating. Although the European market is becoming more interested in Thai products because people there are confident about its quality and safety, stagnating purchasing power there has affected the purchases of furniture quite a lot.
Despite new markets showing growth, the export value to them is not yet not high at all. Therefore, these markets cannot boost the Thai furniture industry to recovery immediately in 2008, but expansion can be seen. Entrepreneurs should continue to seek new markets in order to relieve the risk of dependency on the main markets. Also, entrepreneurs will have to stress designs that are practical, and ensure that their raw materials and quality meet the requirements of target markets.

View full article


Industry