July 09, 2008


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Sector overview: The fashion industry in Thailand
Source  : Royal Danish Embassy - Bangkok Danish Trade Council

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The major import countries within garments is China, Hong Kong, Italy, Spain, Japan, within fabrics; China, Taiwan, Japan, Hong Kong, South Korea and within fibre import it is Australia, USA, India, Japan and Mali.



2.2: Market size


The fashion industry is a major contributor to the Thai economy, accounting for approximately 17 percent of total GDP. It is the largest manufacturing industry in Thailand, with more than 4,500 factories employing more than one million people, roughly 20 % of total employment in manufacturing.


In addition, with annual exports of more than US$ 6 billion (DKK 35.68 billion) per year, textiles and garments rank as one of the nations leading export industry, with garment exports accounting for 60 % of total export. In 2003 Thailand ranked as the 13th largest exporter of garments, with a 2 % share of the global export market.


Analysts expect the industry to enjoy continuous growth, despite of the rising fuel prices, which have affected production cost. Additionally most producers and exporters work on gradually improving product quality in order to meet the requirements of the international market.


As much as 50% of the earnings from Thailand's fashion houses come from tourists, who have been surprised by the Thai fashion industry with its abundance and small fashion houses. The former governments focus on this industry has helped it grow into twice as many local brands from the total two decades ago, as well as penetration on the international market. Five Thai design firms were in 2005 invited to join the White' trade fair, an annual international fashion showcase held in Milan.


Furthermore Thais are very fashion conscious which make a demanding home market. Still the 10 million tourists arriving in Thailand every year helps spark new ideas and provide a ready supply of customers for Thailand's fashion industry. The ancient appreciation of beauty, a modern sense of style and decades of production experience make Thailand an obvious location for foreign fashion business.


 

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