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26 Aug 2011

Industry

Home Textile Exports to ASEAN Looking Bright(Business Brief No.3163)

คะแนนเฉลี่ย

ASEAN has increasingly become an important export market for Thailand's home textiles. It is now the second largest export market for Thai home textiles with staggering 44.4 percent YoY growth recorded in 1H11, the highest growth of any traditional market, including to the US, Japan and EU.

KResearch expects that shipments of Thai home textiles to ASEAN in 2011 will surge to USD70 million, up 50 percent YoY, thanks to several favorable factors. Among these factors include duty-free status per the AFTA pact, steady growth in demand for home textiles thanks to investments in many businesses within ASEAN, rising consumer interest in home decorative products, plus few non-tariff barriers within the region. The outlook for home textiles looks rosy because the ASEAN Economic Community (AEC) to be formed in 2015 will likely attract more investment, helping to bolster the size of the single market through overall higher purchasing power.

However, Thai home textile exports in 2011 will only reach perhaps USD370 million, up 1.2 percent YoY, as the economic slowdowns in the US, Japan and EU, plus heightened competition in export markets may shave off some orders. This will accentuate ASEAN as an important market for Thai home textiles.

Thailand is said to have competitive potential vis-à-vis rivals in home textiles within ASEAN, as Thai production standards and design have earned the trust of foreign buyers. In addition, the geographical advantage of Thailand in the center of the region offers us great market access within the region. Nevertheless, ASEAN consumer behavior places great importance on product quality, practicality and pricing, so Thai home textile exporters will therefore need to improve on those factors to avoid competition with rivals. They should also focus on designs that meet the diverse needs and preferences of each market. In addition, Thai manufacturers should enhance their supply chain cooperation to facilitate demand for home textiles in the real estate, furniture, hotel, spa, restaurant and movie theater businesses within ASEAN in the future.

Industry