Thailand Shoe Industry Is Beset By Many Unfavorable Factors.

According to the Research Report of Thailand Taihua farmers' research center, shoes are indispensable to people's daily necessities, which are divided into sandals, sports shoes and leather shoes to meet people's requirements for different purposes and occasions. Footwear industry has a long history in Thailand's economy, and has developed into an export oriented industry. Shoe exports have brought considerable foreign exchange earnings to Thailand. However, at present, the footwear industry in Thailand is beset with many unfavorable factors, including the competitive edge of China, Vietnam and Indonesia. These countries not only have the competitive advantage of low production cost, but also have the support of their respective governments, as well as the external factors such as the adjustment of the Thai baht, the adjustment of joining the international free economic system, market risks, production and design problems, and so on, which directly affect the footwear industry. The footwear industry in Thailand is a labor-intensive industry. Most of the shoes produced by Thailand shoe factories are supplied to the middle and low market, but the sports shoes are mainly used for export, and most of the sports shoe factories are large scale production enterprises, with complete spare parts industry chain and support industry chain. In the first 3 quarters of 2007, the production index of Thailand footwear industry was 149.7, an increase of 3.1% over the 2006 production index of 145.2. Of the shoe products produced in Thailand, 30% are used for domestic market sales, most of which are 70% for export. In the domestic low and medium shoe market, Thailand shoes have encountered competition from low price imports from China and ASEAN countries, resulting in small and medium sized manufacturers having to shift their target customers to customers with high consumption. They emphasize the importance of unique design and fashionable product styles, and strive to reduce production costs. In terms of import of shoes products, the import volume of shoes and shoes accessories in Thailand has been increasing year by year. The total import of shoes and footwear accessories in 2006 increased from $58 million 100 thousand in 2005 and $14 million in 2005 to $66 million 700 thousand and $27 million 200 thousand respectively. In the first 10 months of 2007, the import of shoes and shoes and accessories reached US $76 million 100 thousand and US $51 million 500 thousand respectively. At present, the top 5 import sources of Thailand shoe products are China, Vietnam, Malaysia, Italy and Indonesia in succession. Among them, Chinese shoes and shoes spare parts occupy the largest proportion in total import volume, accounting for more than 50%, most of which are low price products. In the export market, Thailand's footwear exports continued to grow. Sports shoes are the main export products, which account for 60% of the export of shoes, followed by 25% percentage of leather shoes. These two kinds of shoes are mainly used for export, while the exports of slippers and other shoes are not large. Most of the export sports shoes are manufactured by foreign famous brands, and production orders from abroad, especially the United States and the European Union, are continuous. However, the Thailand shoe factory, which is produced by OEM, is also facing fierce competition from China and Vietnam. It is necessary to improve product quality and delivery standards so as to increase competitiveness. Most of the exported leather shoes are used to supply the middle and low market abroad. At present, they are faced with fierce competition in price, quality, technology, machinery, design, labor cost, and the shortage of raw materials in China. However, Thailand shoe factory has excellent labor resources and good management advantages. The main export markets for leather shoes in Thailand include the United States, the European Union and some Asian countries. In recent years, they have also received preferential tariff treatment from the European Union. On the whole, the production, import and export of footwear industry in Thailand is still increasing, but there are also some disadvantages, including product design improvement, backward production technology and labor cost than competitors. Therefore, Thailand shoe factories must actively improve the competitiveness of domestic and foreign markets so as to meet the growing market demand.