Marketing your products and services
Market entry
The keys to Australian competing successfully in Thailand are opening local offices, or establishing agents, and the willingness to develop long-term relationships.
Developing a network of contacts with local companies and government ministries is essential.
Major telecommunication projects are currently under the responsibility of TOT Public Company Limited and the Communications Authority of Thailand (CAT). Australian companies and/or local partners need to establish good contacts with these agencies in order to facilitate bidding for projects or licenses.
Local companies are keen to work with international partners through joint venture arrangements, distributorship or as strategic partnerships, depending on the situation, and often have to seek international expertise, when working on large-scale projects.
Telecommunication equipment suppliers should factor the following information when approaching the Thai market:
- Testing and certification by local authorities is required for most equipment
- The market is price sensitive and has an expectation of high level specifications
- There are no direct sales into the public sector; purchasing is conducted by tender and suppliers will most-likely require a local partner
- A previous deployment of the equipment, to act as a reference site, will be necessary for the sales process
- Project-by-project partnership can be a better strategic approach than forming long-term exclusive arrangements
In regard to consultancy services, it is advisable to collaborate with local companies.
Software/content exporters require an appropriate local partner for technical needs such as system integration, language translation, and/or as a sales and marketing channel. It is an effective strategy to have the principal visit potential customers, possibly as part of an outward mission targeting hot sectors - wireless, e-learning, e-security, edutainment for SOHO businesses.
Involvement in trade associations and/or government-sponsored funding programs is a powerful tool for gaining access to opportunities.
Regional industry exhibitions can assist in creating brand and product awareness. For example, Austrade participates in annual events such as – CommunicAsia in Singapore.
Australian companies are encouraged to investigate the prospect of opening manufacturing facilities in Thailand in the mid-term.
The most frequent problem with introducing foreign technology into Thailand is that it is overly advanced or costly to fit the needs and financial capabilities of the country.
Information and technology products and systems marketed in Thailand should:
- Be relatively easy to install or construct
- Have low levels of ongoing maintenance
- Have minimal need for technical or professional support in operations and repair
ICT services should be of a high standard and provide on-site training for engineers/technical support personnel.
Electronic signature and online money transfers are not yet available in Thailand. You need to check that your trading partner has the equivalent facilities to support the transaction of services.
Distribution channels
Most international suppliers of equipment, service and technology enter the Thai telecommunications industry by appointing local agents/distributors.
You can gain access to established information and communications technology distribution channels by organising a seminar, for the potential partners and agents, to present your product/service and any supporting marketing collateral.
Trading online in the ICT industry is not popular in Thailand. However, some services and information including product brochures are becoming available on the Internet. Exporters are encouraged to use the Internet as an ‘online brochure’.
Transport
Most heavy equipment is shipped by sea freight. Shipping time to Thailand from Australia takes two weeks and shipping frequencies are twice weekly from major ports. However, some equipment is required to be shipped by airfreight depending on product types and requirement of users.
It is recommended that you use a customs broker or agent to clear the goods from customs. It is advisable for your local agent or distributor to handle import procedures and documentation, as imports must be done by a Thai registered company.
It is advisable to investigate a variety of service providers. Payment is usually by irrevocable letter of credit.
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