How to enter the Thai market

With the establishment of the ASEAN Economic Community and the gradual improvement of ASEAN integration, Thailand, which is at the heart of ASEAN, has become the foothold for overseas capital investment in ASEAN, and economic development is favored. Although the turbulent political situation in recent years affected the rate of economic development in Thailand, the growth of building materials trade has not been affected much.

According to Xie Zhifeng, operating director of Thailand Ceramic Tile Sales Group leading Thai World Ceramics Center Group, Boonthavorn, which focuses on mid- to high-end retail products, maintains an annual growth of 10%. At the same time, Eastman (Thailand) Building Materials Co., Ltd., which is mainly based on wholesale distributors, also increased by 30% compared with the same period of last year.

According to statistics from the Customs, ASEAN is one of the fastest growing ceramic exporters in China in the first half of 2014. Among them, Guangdong Province exported 3.14 billion yuan to ASEAN, an increase of 36.5%, accounting for the total export value of ceramic products in the same period. 17.6%. Compared with the slump in the domestic market, the growth of ASEAN market exports has brought hope to Chinese companies.

Sanitary company business differentiation

Thailand has 76 prefectures and a population of about 70 million. In this country with a smaller population than Guangdong Province, according to Xie Zhifeng, there are 150-200 building materials stores. The brands include BOONTHAVORN, GRAND HOME, HOMEPRO, HOME-MART, and GLOBAL HOUSE. , DO HOME, THAI WATSADU and so on. Although there are many brands, but the precise positioning between enterprises, the market segmentation is clear, differential operation does not appear vicious competition.

BOONTHAVORN, which is mainly engaged in the retail of middle and high-end ceramic tile and bathroom products, was established in 1977. Currently, it has 9 branches in Thailand. The total area of ​​the exhibition hall is 150,000 square meters. The number of employees is more than 2,000. The aim is to provide professional and efficient services. A modern logistics distribution center and professional design exchange center attracts Italian SANT'AGOSTINO, Spanish Porcelanosa, REALONDA and ROCA, USA KOHLER and AMERICAN STANDARD, Malaysia GUOCERA HOLDINGS, and local COTTO, SOSUCO, CAMPANA and China Jane First, Loulan, Hong Tao, Irving Lai, Ferrona and other high-end ceramic tile bathroom brands settled. Tile sanitary ware accounts for 70% of the products sold, and is equipped with kitchens, furniture, lighting, installation tools and other products. Retail, owners, builders, contractors, interior designers, and real estate developers serve them. The professional and efficient service not only won the recognition of customers, but also established a high reputation in the industry.

While HOMEPRO, a large-scale home furnishing department store, mainly focuses on middle- and low-end product retail, the comfortable one-stop shopping environment is suitable for ordinary residents and also attracts some projects and a small amount of wholesale. According to NIRUT THEWADITHEP, general manager of its overseas trade department, HOMEPRO, which has an 18-year history, currently has 71 stores (including 2 stores in Malaysia) and is the largest in its category of home department stores.

Tile sanitary ware products account for less than 20% of all its products. There are other products such as household appliances, furniture, furniture, tools, and textiles. According to NIRUT THEWA-DITHEP, 30%-40% of the shop purchases from the local market, while others purchase it from China, Vietnam, India, Spain, etc. The monthly purchase volume reaches several hundred containers, and the amount of procurement from China is the largest. Compared with other building materials supermarkets, HOMEPRO hopes to take the high-end route. The Group also has a separate MAKE HOME subsidiary and specializes in low-end products that meet the needs of ordinary workers. In another development, HOMEPRO plans to set up two exhibition halls in each government house in Thailand, adding 8 to 10 new stores each year. At the same time, they also plan to open stores in other parts of ASEAN. According to industry insiders, we can now ship directly from China to various offices, shorten delivery time, reduce freight costs, and increase competitiveness. At the same time, Eastman had a monthly inventory of over 500 containers at the peak of sales.

Bathrooms pay more attention to quality

It is understood that China is the main importer of Thai ceramic tiles. Its products are dominated by medium and high-end products, which mainly occupy the mid-range consumption in Thailand. The high-end product market in Thailand is still occupied by brands such as Spain and Italy, and local brands are mainly targeted at low-end consumption. Others also import from Vietnam, India and Malaysia.

The Thai market has requirements for design and pays more attention to product quality. According to industry insiders, 95% of Thais believe in the Buddha, and their faith gives them a sense of self-discipline. Although each company has a profit target, the more important point is that in pursuit of higher profits, it is necessary to protect the interests of others. Therefore, whether they are BOONTHAVORN, HOMEPRO, or Eastman, they all have a keyword “quality” for their suppliers. Industry sources said that although Eastman is mainly based on wholesale distributors, it is sensitive to price, but if the products are of poor quality, the price is low and it is also a waste product. After a problem occurs, the company will not only suffer financial losses, but also the corporate brand image. Will be damaged. As the leading home furnishing department store, HOMEPRO is more cautious, NIRUT THEWADITHEP emphasizes that the retail price of department stores should be reasonable, but if there is a problem with the goods, HOMEPRO is responsible to the customer. Previously, because of a product quality problem, the price of 900,000 baht of the product, the result is to compensate 15 million baht, the consequences are very serious.

In order to reduce inventory pressure, some Chinese companies have dumped the backlog of products overseas, disrupting the order in the export market, not only failing to sell Chinese products at good prices, but also causing MADE IN CHINA (Made in China) to become tainted by “bad products”. name. It is estimated that there is no room for such manufacturers in Thailand.

Sanitary companies win service

While the competition for products is hot, sanitary companies have not forgotten their innovative services. In the booth of BOON-THAVORN in Chiang Mai, the first to introduce I SHOWROOM (smart showroom), through the computer and television display, consumers can get information of all the shops' products and touch 360 electronic with a touch of screen. The exhibition hall walks around every corner of the store and sees simulated space and promotional information to create a convenient shopping experience for customers. At the same time, over 110,000 square meters of Chiang Mai Exhibition Hall, 70% of the area is used for green building, 20,000 square meters of exhibition halls behind it, creating a back garden with a small bridge flowing water, fresh grass and green grass, and becoming customers. A good place for shopping and leisure, while promoting the building industry's environmental protection construction. In addition, BOON-THAVORN has 3D DESIGN CENTER (3D Design Center) and BCD CLUB (builders, contractors, designer clubs) in each exhibition hall to provide customers with professional design services and comfortable communication space.

Similarly, Home-PRO also has a professional design center to provide design consulting services for consumers. Eastman, a wholesale distributor, also introduced CE-RAMIC KING software, hoping to provide customers with more complete supporting services. Wu Zengcan also introduced that Eastman will cooperate with building materials chain stores to establish 50 Eastman Halls. All design and installation will be provided by Eastman, and there will be guides for showrooms.

Sanitary companies only have good faith management, in order to win the trust of customers; only intentions of service, in order to obtain the appreciation of customers; only the market self-discipline, there is room for healthy development.