Thailand Business Guide - UK Trade & Investment

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MARKET ENTRY ESTABLISHING A PRESENCE Although you may be approached directly by Thai companies interested in purchasing your products on a non-regular basis, it is generally advisable to establish an in-country presence in order to gain a foothold in Thailand. Most UK companies successfully doing business in Thailand have local representation either by establishing their own offices or by appointing agents/ distributors. Such a presence shows that companies are serious about the market and willing to provide local technical support to partners and customers. After pricing, technical support is the most important issue for prospective Thai buyers. UK companies looking to trade with Thailand should also be aware that many Thai businesspeople are likely to base decisions as much on perceptions as they would on objective consideration of business information. Agents and distributors An agent is a company’s direct representative in a market and is paid commission, whereas a distributor buys products from the manufacturer and sells them on to customers. The difference between the cost of purchasing products and selling them on (the profit) forms the distributor’s income. 18 Entering a market by working with an agent or distributor can have several advantages. It reduces time and costs, and companies gain the local knowledge and networks of the agent. However, there are some drawbacks, too. Employing a third party results in an additional cost to your products and you may also lose some control and visibility over sales/ marketing. It also has implications for intellectual property rights protection, increasing the risk of your product being copied or counterfeited. Your local UKTI office will advise you on how to commission a tailored report for your specific needs and can also provide a list of the best potential partners. A visit to Thailand will enable you to meet some of them and appoint a local contact. Suggested questions to ask agents/ distributors are listed below. You should also conduct due diligence to verify this information. Given these considerations, companies need to select agents and distributors carefully. Some of the frequently asked questions are in the following checklist. You should also conduct due diligence to verify this information.
Background • Company size, history and ownership (private or state owned) • Quality and quantity of the sales force • Customer feedback and trade/bank references Distribution channels • Regional coverage • Types of outlets covered and frequency of calling • Transportation and warehousing facilities Are they right for you? • Does the agent/distributor have a genuine interest in representing your product? • Can they benefit from actively promoting your interests (is it a win-win)? • Do they also represent any competing companies/products? • Can you communicate effectively with your counterpart? Once a working relationship is established, the agent/distributor needs to be managed actively by: • Visiting as regularly as is practicable at a senior management level. This shows interest in and commitment to the agent and the market. It will also provide you with an opportunity to learn about conditions in the market and see how your products are faring. • Working closely with the agent to show them how they can profit from your products. • Helping to prepare marketing and sales plans for the agent. • Providing regular training for the sales staff and after-sales training for the technical staff in the UK. • Linking performance to incentives and agreeing milestone targets. There is additional guidance on working with Thai partners in later sections of this Thailand Business Guide. 19
Page 1 and 2: HELPING YOUR BUSINESS GROW INTERNAT
Page 3 and 4: CONTENTS INTRODUCTION Why Thailand?
Page 5 and 6: Economic leader Thailand is one of
Page 7 and 8: Thai consumers are also creating op
Page 9 and 10: PRIORITY SECTORS The following sect
Page 12 and 13: RESEARCHING THE MARKET WHERE TO BEG
Page 14 and 15: Key questions • What are the uniq
Page 16 and 17: RESEARCHING THE MARKET HOW UKTI CAN
Page 20 and 21: MARKET ENTRY ESTABLISHING A PRESENC
Page 22 and 23: MARKET ENTRY GETTING TO THAILAND Vi
Page 24 and 25: GETTING STARTED FINDING A CUSTOMER
Page 26 and 27: GETTING STARTED EMPLOYING STAFF Rec
Page 29 and 30: GETTING STARTED LANGUAGE Communicat
Page 31 and 32: GETTING STARTED DAY-TO-DAY COMMUNIC
Page 33: • Speak clearly and evenly with r
Page 36 and 37: BUSINESS ISSUES AND CONSIDERATIONS
Page 43 and 44: • Businesspeople relocating to Th
Page 45 and 46: • The place of manufacture or the
Page 49 and 50: BUSINESS CULTURE In a highly compet
Page 51 and 52: BUSINESS CULTURE INTRODUCTIONS AND
Page 53 and 54: BUSINESS CULTURE BODY LANGUAGE AND
Page 55 and 56: UK SUCCESS STORIES BG Group: has a
Page 57 and 58: RESOURCES/USEFUL LINKS Country info
Page 60: HELPING YOUR BUSINESS GROW INTERNAT

Thailand Business Guide - UK Trade & Investment

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