Bangkok Danish Trade Council - Fibre2fashion

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.