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(Last updated: 6 Nov 2008)
Trends and opportunities
The market
In 2007, the total market of clothing and footwear in Thailand was approximately A$1.2 billion. Clothing and footwear retailing was among the sectors that was affected due to the slowdown of the economy from the political turmoil in Thailand.
Despite the political instability, the number of outlets of international clothing and footwear retailers is still growing alongside the expansion of new shopping malls in the cities.
As Thailand positions itself as the region’s shopping destination, new international players from Australia, Europe and the USA are expected to enter Thailand’s shopping malls in the cities.
Thai consumers have increasingly international tastes, and brands that are famous in Western countries find it easier to penetrate the market.
When it comes to choosing an Australian fashion brand over a European or American brand, the impact of the Thailand-Australia Free Trade Agreement (TAFTA) is in Thai buyers’ favour. Import tariffs on many Australian-made apparel and fashion items have been significantly reduced since the implementation of TAFTA on 1 January 2005.
Opportunities
Thai consumers embrace new and trendy brands with characters. Opportunity areas include: casual wear and accessories (eg. necklaces, bags and shoes).
Competitive environment
Thailand is one of the world’s major exporters of textiles. The Thai Government also supports local designers. Local products are of good quality and competitively priced.
Imported products from the USA and Europe are often perceived as better quality and 'trendier', particularly high fashion designer brands. Leading brands in Thailand include Gucci, Prada, Valentino, Louis Vuitton, Guess, Nine West, Dolce & Gabbana, DKNY, Hermes, Diesel, AlX Armani and Calvin Klein.
To be able to compete in this market, many brands manufacture their clothes and accessories locally.
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