Thailand Textile And Clothing Exports May Continue To Shrink

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According to the July 16th Research Report of the Kai Tai Research Center, although the export situation of textiles and clothing in Thailand in the first half of 2012 was not very clear, it was because it was affected by the situation.

The impact of larger products, and the competitiveness of such products in Thailand has also declined, but it is expected that its exports will be driven by exports in the second half of the year, which will help to reduce the shrinkage of textile and clothing exports in 2012, because it is the peak sales period with the largest number of orders, and some Thailand products, such as synthetic fiber, clothing and underwear, can still maintain the market share of ASEAN exports, clothing,

And household textiles can still maintain exports to the Japanese market.

Kai Tai Research Center predicts Thailand textiles and products in 2012.

The total value of exports will fall to 73-76 billion US dollars, which will shrink by 8-12% compared with that of the European market.

However, after analyzing the Asian markets such as ASEAN and Japan, it is found that its exports are on the positive growth trend. Especially after ASEAN became the largest export market and star market of Thailand's textiles and clothing in 2011, it is also expected to become the world's main production base, and thus become the initiative to promote Thailand's export of such products.

Therefore, operators in the industry should step up their export to these countries to ease the economic weakness of the main markets that rely on them, and at the same time, be ready for the completion of the unified economic market and production base of the ASEAN Economic Community (AEC) in 2015.

For the second half of 2012, Thailand

The export trend of clothing must be concerned with 2 factors, one is the foreign factors, including the concern about the impact of the euro zone crisis on consumer behavior, and the overseas target market is paying more attention to the trend of rapid response to consumer demand, which will lead importers and distributors to import to the production base with pport and speed advantages or lower labor costs.

Another factor is domestic factors, including the increase in production costs due to the rise in minimum wage standards and the shortage of labour force in the manufacturing sector, which weakens the competitiveness of products.

Kai Tai Research Center believes that the textile and garment industry may be deprived of more market share in the future, so operators should enhance their business capabilities.

For the original equipment manufacturer (OEM), it can increase competitiveness by finding cheaper production bases. The destination countries include Kampuchea, Laos, Burma and Vietnam (CLMV) and other neighboring countries.

Private label manufacturers (OBM) can produce products that can better satisfy the needs of consumers by investigating market conditions and consumer lines in target market countries.

However, in the long run, manufacturers should avoid price competition, introduce technology to increase production capacity and reduce labor costs, raise supply chain management level, and strive to establish partners or joint ventures that can help quickly respond to market demand. Through innovative research, commercial marketing will be developed to penetrate value-added markets such as industrial textiles and organic textiles to support the growth of industries such as the automotive industry, medical industry and agriculture, thereby bringing more benefits to enterprises.