It will be difficult for Thailand’s textile and clothing exports to recover in the second half
Although the situation of Thailand’s textile and clothing exports in the first half of 2012 is not clear because they are products that have been greatly affected by the euro zone crisis, and the competitiveness of Thailand’s products has also declined, it is expected that its exports will gain momentum in the second half of the year. The boost in exports will help narrow the contraction in the value of textile and clothing exports this year, as it is the peak sales period when orders are highest, and some Thai products such as man-made fibers, clothing and underwear can still maintain their market share in exports to ASEAN, and Clothing, underwear and home textiles can still maintain exports to the Japanese market.
Thailand’s Kasikorn Research Center predicts that the total value of Thailand’s textile and clothing exports will drop to US$7.3-7.6 billion in 2012, a year-on-year shrinkage of 8.0-12.0%. There is still a risk that the European and American markets may continue to shrink significantly. . However, after analyzing Asian markets such as ASEAN and Japan, it can be found that exports to them are showing a positive growth trend. In particular, ASEAN is expected to become the world’s major production base after becoming the largest export market and star market for Thai textiles and clothing last year. , will become the main driving force to promote the export of such products from Thailand. Therefore, industry operators should step up efforts to expand exports to the markets of these countries to alleviate the impact of the weak economic status of the major markets they rely on, and at the same time prepare for the establishment of a unified market and production base for the ASEAN Economic Community in 2015.
Regarding the export trend of Thai textiles and clothing in the second half of 2012, we must pay attention to two factors. One is foreign factors, including concerns about the impact of the Eurozone crisis on consumer behavior, and foreign target markets are paying more attention to rapid response. The trend of consumer demand has led importers and distributors to shift the source of imports to production bases with transportation and speed advantages, or lower labor costs. Another factor is domestic factors, including the significant increase in production costs due to the increase in the minimum wage standard and the impact of labor shortages in the manufacturing industry, which weakens product competitiveness.
Kasikorn Research Center believes that the textile and clothing industry is likely to lose more market share in the future, so operators should enhance their operating capabilities. For original equipment manufacturers (OEMs), competitiveness can be increased by finding lower-cost production bases, including neighboring countries such as Cambodia, Laos, Myanmar and Vietnam (CLMV). For private label manufacturers (OBM), they can produce products that better meet consumer needs by investigating the market conditions and consumer behavior in the target market countries. However, in the long term, manufacturers should avoid price competition, introduce technology to increase production capacity and reduce labor costs, improve supply chain management, and strive to establish partnerships or joint ventures that can help produce products that can respond quickly to market demand. etc., conduct commercial marketing through R&D innovation, and explore and penetrate value-added markets such as industrial textiles and organic textiles to support the growth of various industries such as the automotive industry, medical industry, and agriculture, thereby bringing more benefits to enterprises.
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