3: Market trends

The Thai fashion industry has been heavily promoted within the last couple of years. The government seeks to secure 1.2 million jobs within the industry, as well as educating 6,000 'fashion people', consisting of designers, merchandisers, and production specialists. This should mainly be done through the "Bangkok Fashion City" project. It involves the improvement of the overall quality of design, marketing and manufacturing. Further, the project is going to help achieve an even higher level of skilled labour. Additionally, the project is concerned with the education of designers. The New York based "Fashion Institute of Technology" has expressed interest in establishing a fashion university in Thailand and a fashion school run by the Italian "Accademia Italiana Design Institute" is already present in Bangkok.

The Thai government has worked through several projects and work programs to establish Thailand as a competitive country in the region. The objective is to facilitate trade and investment, as well as to promote sustainable growth.

Thailand's garment industry has been one of the country's top export earners since 1985, placing the textile industry second in the top 10 export ranking. While Thai craftspeople are well respected for their artisanship, inward FDI (Foreign Direct Investments) will bring in an augmentation of product design improvement and a more solid establishment of Thai brands and products. Research and development to upgrade design and branding, technology and machinery modernization will be encouraged so that the industry can be transformed from being highly labour intensive to one that is highly innovative.

Nevertheless the latest few years have become tougher for Thailand in terms of competitiveness because the countries that produces cheaper textile products, especially China have taken the position as market leader and hereby have the main market share in Asian, EU and US markets. Nevertheless the export of high quality garment has been increasing and offering the opportunity for Thailand to compete in the global market of textiles. The Thai government's support through the Bangkok Fashion City project will help increase the textile and clothing's trade competitiveness in developing the quality of Thai products to be well accepted and competitive.

Meanwhile, Thai businessmen have begun to focus on better production and marketing, as well as gearing up for new markets, with continual efforts to penetrate these new territories. In addition, the public sector has increased its role in supporting the local fashion and jewellery industry.

4: Market assessment

The range of products and services that Thai companies can offer Danish companies are viewed as promising. First, the quality of fabrics are generally high, especially the quality of Thai silk. Secondly, there are benefits to be reaped from the skilled workforce, which are experienced in producing garments requiring complex constructions or detailed sewing. Furthermore, the continuous education of Thai designers helps to ensure a high level of design all the way around. "The Bangkok Fashion City" project supports further development of a skilled workforce and the education of designers.

Given the existing level of high quality fabrics and the development of Bangkok into a regional and world fashion city, makes the Thai market interesting for Danish companies to invest in production facility in Thailand. It is easy and cheap to get clothes sewed and designed in Thailand. The labour costs in Thailand are relatively cheap and Danish companies can benefit from the good quality.

Although a number of quality enhancing initiatives have been implanted in the Thai fashion industry, there are several areas were specialized technology and expertise is required, offering prospects for Danish investors. Some of the most important are: State-of-the-art printing technology, advanced dyeing and finishing technology, R&D activities and technology for fibres and textiles, and supply chain management technology and expertise in fashion branding and marketing.

According to Thailand Board of Investment the following opportunities are present on the Thai market. Within the respectively sub industries there are different opportunities, but overall there is a need for marketing and expertise and innovative thinking within the industry.