Thailand Furnishings Market: Zero Import Duty

December 5, 2013

Bangkok, Thailand — Over two decades ago the Thai textile Industry had very limited production where even towels and bed sheeting were imported. However now a wide range of apparel fabrics are manufactured and exported. There are few handful of home furnishing producers too that also export but the majority of furnishing fabrics are imported. According to industry sources the government has limited influence in encouraging textile manufacturing as minimum wage at $11 a day makes it less competitive than its neighbors such as India, China and Indonesia. According to industry sources new production facilities for textiles will remain subdued unless government steps encourages with incentives  and as of now there are no indications that government will intervene.  Since 2 years Thailand market has turned not only competitive but the wholesalers apart from catering domestic market have begun exporting to neighboring ASEAN countries.” This is an important development from the year 2011 as imports within ASEAN countries are not subject to import duty enabling re-exports easier and has become an important contributor to our business kitty”, said Pranee Nagasiri, Director, VC Fabrics  Bangkok, Thailand. V. C Fabrics, the largest distributor is 36 years old and caters to 1000 retailers with 30 marketing staff, 300 staff and has embarked on exports within ASEAN countries, Australia, Japan and would like to expand to South East Asian countries soon. “Apart domestic market we are now exporting to Myanmar, Cambodia & Vietnam and others and 11% percent of our business is derived from exports but is soon targeting other countries in South Asia”, added Viboon Woraditkittikul, Managing Director, also brother of Pranee. Pranee who looks after purchase observes that doing collections 3 or 4 times a year is challenging and she has to keep aside her own preferences. “Personnel choice in terms of color, trends and other aesthetics are kept aside when I choose the collections as they should meet my consumer tastes and we lead in understanding markets”, recalled Pranee. VC. Fabrics imports include prints from UK, furnishing fabrics from India, EU, Indonesia, and sheers from Turkey & often visits International trade shows to make selections from a new wider range of collections. According VC. Fabrics, Thailand has strong sun and sun protection fabrics have ever green demand while basic design sell fast as Thai consumers are not very colorful by choice. Pranee Nagasiri, Director, VC Fabrics  Bangkok, Thailand & Viboon Woraditkittikul, Managing DirectorPranee Nagasiri, Director, VC Fabrics Bangkok, Thailand & Viboon Woraditkittikul, Managing Director

Nitas Tessile started furnishing business from their home 20 years ago and now occupies a large office space cum warehouse spread over 5 floors in Bangkok city. “We, Nitas grew in mid 2000 and were primarily distributing Satin Textile’s furnishings fabrics and recently added others too: Today we have over 1000 dealer net-work with 15 sales staff to do sales and service”, informed Tanya Trugkabunchar (Bon), owners son. Residential furnishings is Nitas main stay followed by outdoor fabrics and contract business is turning highly competitive as hotels tend do contact suppliers directly to save whatever they can on their purchases. Nitas stocks Thai collections as well imports from Turkey, Indonesia and India as well holds a wide range of ready stocks of Velvets, Damasks, Curtains & outdoor fabrics from Europe. “Managing stocks, after sales service is crucial and this will drive our future business growth: Currently we re-visiting the existing practices and will introduce additional efficient management systems soon”, said Bon. Importantly, Nitas export business is on a upswing and exports to Japan, Taiwan and host of South East Asian countries including Philippines. Nitas believes that stocking to cater to its dealers is becoming more challenging and warehouse full of collections sometimes fall short of target as consumers wants to see more variety, added Bon.

Thailand attracted over 22 million tourists in 2012 where resorts and hotels are important, which is the key to the furnishing business.  Who decorates Thailand royal palaces, high end hotels and resorts? Charoen Decor International Ltd, Bangkok leads in contract segment catering to high-end decoration of furnishings, furniture and decorative wall papers. Spread over 5 floors, each 350 square meters, Charoen Decor show cases high-end furnishing fabrics, furniture, artifacts and decorative accessories including wall papers. “We hold exclusive line of collections from over 20 global brands and decorate palaces, hotels and classy residential homes”, said Sutharak Soonthornpusit, Managing Director, Charoen Decor International Ltd, Bangkok. Highly passionate of her decoration strengths, started her business in 1983.” We have decorated pricy properties  in Thailand as well as overseas including in Vienna, Dubai, Myanmar and other countries: Designers and specifiers find almost all  decorative element  with us,”’ informed, Sutharak. “Few years ago sourcing was an issue but now every item as desired can be procured and we work on exclusive basis since our customers are also exclusive in their demand”, she added. The company doesn’t stock as fashion changes fast but goods are available on ordering except special custom made products. “We have exclusivity for many international brands like JAB, Armani Casa, Zaffany, ADO, Houles..just to name few and has decorated hotels such as Kempanski, Dubai, St Regis, The Shangri-la, Bangkok and others in a list of 70 Plus names apart from palaces in Thailand. Having expertise in decorating palaces brings regular assignments overseas too and her team of 12 designers interacts with top 50 designers & customers on a regular basis. “Our reputation is built on our customer satisfaction that is delivered by dedicated design team & we are looking for a steady growth in future too”, said Sutharak.      

 



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