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

11 Nov 2005

Industry

Thai Furniture and Parts: New Markets Needed To Spur Exports

คะแนนเฉลี่ย

Over the past four to five years, new markets for Thai furniture and parts have collectively accounted for less than 10 percent of the country's overall exports of these products, annually. Among them were China, India, South Africa, the Middle East, Australia and New Zealand, as well as such marketplaces as Russia, Latin America, South Asia and Africa where the government had launched serious campaigns to penetrate markets. However, it is of particular note that exports to these markets have exhibited steady growth.

Over the first nine months of this year, exports of Thai furniture and parts to the new markets accounted for only 8.31 percent of total exports of this product category. However, their proportion has risen steadily over the year before. During the same period, exports of furniture and parts to the new markets also posted higher growth of 18.29 percent, over-year. Meanwhile, established markets, i.e., the US, Japan and the European Union ? representing 80.84 percent of Thailand's overall exports of these products ? have grown only 7.32 percent, year-on-year.

In the midst of heightened competition, particularly, in the traditional markets, Kasikorn Research Center (KResearch) takes the view that it's high time for Thai businesspersons to adopt aggressive strategies to penetrate new markets. In so doing, Thai businesses will not only be able to diversify their risks of being heavily reliant upon traditional markets amid stiff competition, but will also boost their export-related income in the prevailing environment of free trade. What's more, they will be better prepared for the looming bilateral free trade agreements that are set to increase.

KResearch views that, in 2005, overall exports of Thai furniture and parts to new markets such as China, South Asia, Middle East, Russia, Latin America, Africa including Australia and New Zealand ? where the government is expediting market penetration ? should create income to Thailand of around USD100 million, or growing more than 27 percent. This is because demand is trending better, particularly in the markets of Australia, New Zealand and the Middle East. For Latin America, there are four major targeted countries, including Brazil, Chile, Argentina and Uruguay. The South Asian market consists of eight countries, including India, Bangladesh, Sri Lanka, Bhutan, Nepal, Sikkim, Pakistan and the Maldives, plus the Africa; a new trade partner that should become more important to Thailand's overall international trade, and not only for furniture and parts. It is also a new market that Thai entrepreneurs should not miss because, apart from some African countries being potentially trade gateways to access other markets for Thai furniture and parts, the export growth of these goods to Africa is also rises quite significantly. However, Thai entrepreneurs should survey and study market channels in clearer detail for each country before making any decision to enter these new markets, thus to achieve optimum benefits for Thai furniture and parts.

Industry

Furniture