The export value of Thai furniture and parts to the Indian market has been relatively modest in comparison to other established export markets including the US, European Union and Japan. However, with their 1,100 million-strong population, high economic growth averaging 8.3 percent through 2004-2006, and foreign investors' continued interest in India, particularly toward the construction and decorating industries that have been growing in line with soaring housing demand there, as well as mushrooming hotels and resorts, bright prospects seem to lie ahead for furniture and parts. Demand for this product category comes from both Indians and expatriates and has posted healthy growth over the past several years. During the period 2003-2005, imports of furniture and parts into India grew in excess of 50 percent per annum. This bodes well for Thai exports into the Indian market. KASIKORN RESEARCH CENTER (KResearch) takes the view that exports of Thai-made furniture and parts into India in 2007 may grow at least 20 percent to top USD10 million.
Still, their complex tariff structures and legal system that differ from state to state, plus stiff competition in the medium-to-low end markets where China and Malaysia are quite active are regarded as major threats for Thai furniture toward increasing their presence in the Indian market. If Thai entrepreneurs want to invest in India, they should study local laws and demand there in detail. Moreover, they should select their target customer groups prudently in order to devise effective marketing strategies. Marketing strategies for India require that entrepreneurs use not only a single strategy for all markets in the country, but strategies tailored for each region. Hence, entrepreneurs have to specify marketing strategies best suited for each region or state. Meanwhile, entrepreneurs will have to continuously develop their products and production. Although price is the main factor for the Indian market, Indians still place value on exceptional workmanship that deserves the price placed on it.
In addition, Thai entrepreneurs should use the services of distributors in India or find trustworthy alliances to assist in market penetration, with whose help they can coordinate with government agencies there to ensure that their business runs smoothly. Aside from penetrating the Indian market, Thai exporters should think of India as a gateway to the Middle East market and neighboring countries such as Bangladesh and Pakistan, through which they could gain the benefit of tax exemptions available on trade between countries in that region. As a result, the prices of Thai furniture would become more affordable. This would be a way to create new opportunities for Thai furniture and parts. Thai entrepreneurs would thus be able to expand into this market even though the competition is getting tougher respectively.
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