Thailand fashion Industry comprises of Jewelry, leather goods and garment. Not so long ago, Thailand first apparel brand was launched in 1980. It took the country 20 years to cover all sectors; women’s men’s and children’s fashion. Nevertheless, fashion industry in Thailand is still undersized European fashion houses. Analysts expect the fashion Industry to have a constant growth, even with the ruling of gasoline prices, which have been a big impact on the production cost. This is because Thai government has also committed to promote the Thai fashion industry.
In 2004, the government has strengthened the Industry by setting up the “Bangkok Fashion City” project which would serve Bangkok as a fashion city In South East Asia. By the year 2005, the government has removed the quotas. Its goals are to promote all aspect of Thailand fashion trade on large scale and to make Bangkok as a city for fashion designs. The Thai government has decided to focus and promote fashion industry because in general Thai people are very fashion conscious.
This has already created a competitive environment for local market. And with the steady number of tourists coming In every year, It Is proven that the Industry can possibly contribute to the national earning. As a matter of fact, more than half of the transaction comes from tourists. Incoming tourists are also helping shape the idea as well as the style. B. Retail Sales In 2009, retail sales of textiles, clothing ; footwear specialists have increased by 26%. Department store also grew their share of total sales in 2009.
Thai Fashion Market Thai fashion market can be divided into five segments- Discount, Mass Market/ Moderate, Better, Contemporary/Bridge and Designer Discount: Low quality products, the products are produced from either local made and non- branded which imports from China. Some items for discount are knockoff from designer names. Discount seems to be favorable from This dues to its attractive prices. More than half of the population in Thailand who lives in poverty and earns low income mostly consumes discount. Mass Market and Moderate: Mass market and moderate are intended for broad consumption.
It targets at low to middle income earners such as high school students, university students, newly graduate students and young professional workers. These include brands like Ezra, Forever 21 and H;M and some of Thai designer boutique. Better: The higher to middle income segments comprise of brand like Esprit, Guess, Longhair, Liz Collarbone and local brands such as Soda, Sepal. Contemporary and Bridge: Contemporary implies the latest in new styling targeted for younger fashion-forward consumers. The products are known to be those high-end brands such as Betsey Johnson and Sisley.
Bridge is the gap between contemporary and designer labels, better known bridge labels are Lauren by Ralph Lauren and DENY by Donna Koran. Designer: Examples of designer are Channel and Sissy Make. Brands that includes the ART lines of haute couture designers D. Market Trends We live in dynamic world where changes follow one another at a rapid pace. This also applied to Thailand fashion industry. The notable trends are internet sales, house brand, and social networks. Though, the internet sales have not yet replaced the store channel but it has the highest growth potential.
The use of internet in Thailand grew at a rate of 20 percent every year since 2001. And in the past year, internet shopping has become very popular. According to the National Electronics and Computer Technology Center, internet users grew from 3. 6 million in 2001 to 24 million in 2010. The users are expecting to reach 36 million in 201 5, which has room Enid only air line ticket in best selling goods through internet. House brands also have great potential. House brands have picked up its pace during the recession. They are now better in both product quality and design to become global brand.
The growth rate in Thailand for house brand is over 25 percent in 2009. Their advantages are in pricing and response time. Its pricing attracts middle income consumers. However, the design, quality, and the diversity are also the influence to attract high income consumers. Social network is a new channel to communicate with consumers. Social network provide two way communications between, an exchanges f idea without a hard sell, which makes it more attractive. A statistic has shown that seven out often retailers in the world has its own page to communicate with customers. E.
Fashion Distribution Channels Thai fashion distribution channels are mostly through department store, specialty retail store, standalone store and boutique. The lists are as follows; Discount usually sells in the off price market and shopping night market. The shops are located at Quantum Night Bazaar and Chatham Weekend Market along with flea markets. Mass market and moderate are typically distributed through department stores, hopping malls, specialty retail store, and standalone store such as Central Larboard Department Stores, Robinson Department Stores, Siam Square, and Siam Centre.
Distribution channels for better also comprise of department stores, shopping malls such as Central Godchild, Paragon and Siam Discover Center. These are the place that target middle to high income shoppers. As for the designer and contemporary/bridge, most of the distribution channels are department stores and hotel shopping section in the heart of Bangkok such as Grayson Plaza, Rowan Bangkok, and The Emporium. F. Pricing Profile The price range of products showed below is classified by fashion price point categories.