Enhancing Thailand’s Competitiveness in Fashion Product

Introduction

Background to the study

Thailand is an independent country with a constitutional monarchy type of government that was adopted in 2007 through a referendum. The country has a total population of 64.3 million of which 20% is composed of urban population. The population is composed of two main ethnic groups which include Thai which are 75% of the total population and the Chinese, 14%. The country’s average population growth rate is 0.95% (‘Country profile: Thailand’, 2009, 1-2).

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The economic performance of a country depends on its competitiveness in the global market compared to other countries. Competitiveness refers to the performance and ability of a country, firm or a sub sector within an economy to sell its products and services in the market effectively. On the other hand, competitiveness of a country is an economic theory that is involved with the analysis of policies and facts that result into a country’s ability to create and sustain an environment culminates into more value for the enterprises. The ultimate result is an improvement in the prosperity of the people (Stephanie, 2006, p.2).

Various governments are increasingly formulating strategies aimed at improving their countries competitiveness. The prosperity of a particular country is determined by its competitiveness. In addition, the degree of competitiveness depends on the country’s productivity in relation to the production of products and services. Porter (2005, 1), asserts that productivity is determined by the value of a country’s goods and services which is determined by the price that they command in an open market. Productivity is also determined by the efficiency with which these products and services are produced. In addition, competitiveness of a country is also affected by the efficiency with which a country utilises its resources such as human capital and natural resources. Increased productivity benefits a country in a number of ways. For example, the country’s exchange rate is enhanced and the wage rates and the return on capital are also increased.

Micro economic fundamentals are an important element in the process of a country developing its competitiveness. These elements include the strategies of business operation and the nature of the microeconomic environment in which firms compete. Firm’s competitiveness is one of the ways in which a country can attain a national competitiveness. This is due to the fact that superior performances of businesses result into increased economic performance of a country due to improved international trade. This culminates into and improvement in the country’s Gross Domestic Product (GDP) which is a measure of a country’s productivity. Increase in GDP culminates into an improvement in the living standards amongst the citizens. Developing national competitiveness is paramount especially for small economies that mainly depend on trade and foreign direct investment. This is due to the fact that these strategies provide a platform for increasing the country’s productivity which culminates into and an improvement in the living standards.

The competitiveness of a country is affected by other factors, these include:

  • Stability of the macroeconomic environment which is composed of well functioning financial institutions, legal and political systems.
  • Quality of human resource.
  • Technological progress through investment in research and development.

This paper is a project report on the competitiveness of Thailand.

Aim

The aim of the report is to illustrate how Thailand’s can enhance its competitiveness in fashion products.

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Scope

The report identifies the trend in Thailand’s competitiveness and the strengths that have resulted into its competitiveness. These strengths include large market size, strong labour market, and good infrastructure. The report also identifies a fashion product that can result into an increase in Thailand’s competitiveness. The fashion product includes fashion apparels, footwear’s, accessories and jewelleries. The characteristics of the report are also analysed which include the scope of the project, market research, product designing, time duration and quality control. The various local contents that will be used in the project are also identified. These include leather, rubber, dye, silk and gemstones.

The various human resources to be sourced in the local market are also identified. The external environment is also considered by analysing the domestic and foreign firm’s that present’s high potential rivalry to the project. The report also analyses the various differentiation strategies to be used. It also illustrates the key enhancers to the project which include effective promotion through advertisement and use of technology. It also illustrates the necessary support from the government and the benefits that results to the general public. Finally the report illustrates how the project will result into Thailand’s competitiveness.

However the report does not include the cost that will be involved in implementing the project.

Thailand’s competitiveness

Currently, Thailand is increasing its momentum in terms of competitiveness. According to the 2003-2004 World Economic Forum report, Thailand’s Growth Economic Index (GEI) increased from position 37 to 32. On the other hand Business Competitiveness Index (BCI) increased from position 35 to 31 within the same duration. In 2006, its world competitiveness increased further to position 27. In 2007, the global financial economic crisis resulted into a decline in the country’s competitiveness to position 32. In 2008, Thailand ranked at position 34 of the 134 countries that were assessed using the Global Competitive Index. According to the World Competitiveness Yearbook, Thailand was at position 27 of the 55 countries that were considered (Stephanie, 2006, p. 7). This indicates that the country performed relatively well compared to other countries. The country has a number of strengths that have resulted into an improvement in the country’s competitiveness. These include the following.

Increase in foreign direct investment and large market size

Thailand’s improvement in its competitiveness lies in the fact that the government has opened up the economy through reduction of restrictions related to Foreign Direct Investment and international trade. This has resulted into an increase in the country’s volume of trade since there is an increase in the volume of foreign direct investment within the country.

The country’s competitiveness in relation to foreign direct investment is enhanced by the fact that the country has a wide market. The firms that venture into this market either through foreign direct investment or through exporting are able to conduct business effectively. This is due to the fact that the market is large. Foreign Direct Investment has culminated into an increase in job opportunities for the citizens. In addition, FDI has also resulted into increase revenue collection by the government in the form of taxes.

Strong labour market

Thailand’s strength also lies in the fact that the country has a strong labour market. Thailand’s labour market has undergone a rampant growth from 1990. There has been a transition that has occurred in the labour market. Currently, the economy is moving towards a knowledge based economy. For example; there has been an increased investment by the government in developing human capital. One of the ways in which the government has implemented this is by investing in higher education. For the past decades, the government has been increasing its budgetary allocation towards improving education. This is evident from the fact that the budgetary allocation accounts for 20% of the total government expenditure (Katja, 2002, p.8).

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The effect is that the quality of human resource such as managerial skills has been greatly improved. Effectiveness of training of human resource has resulted into an increase in labour productivity. This is due to the fact that individuals are able to perform tasks more effectively and efficiently. In addition, development in human capital has resulted into an increase in innovative capacity of individuals. This has culminated into effective integration of the concept of value addition in their operation since they can be able to apply new ideas.

Good infrastructure

Thailand government has for over the past 2 decades appreciated the fact that a country’s attractiveness to investors is greatly influenced by the quality of infrastructure. As a result, the government has heavily invested in the construction of diverse infrastructures. These infrastructures include the transport networks such as road and railway network, air and sea ports and telecommunication network. Thailand is well known for its well developed road network which covers a distance of 250,000 kilometres. The road networks have met the international standards and links to all the country’s provinces. The country also has got well established telecommunication network which consist of fixed line and mobile phones. The fixed line enables firms to conduct international businesses efficiently since the cost of calling is minimal. These infrastructures have resulted into efficiency in the process of conducting domestic and international trade. The presence of good infrastructure has made Thailand to be ranked as the fourth most effective country to conduct foreign direct investment. In 2003, the government invested $ 38.5 billion for construction of road network and implementation of new satellite systems. In 2005, the government also invested a substantial amount for the construction of airports and the development of mass transit systems such as the Sky train. By linking its transport network with Trans- Asian Highway and the Asian Highway, Thailand will be opened up to other Asian countries (Renee, 2007 , 5).

Enhancing Thailand’s competitiveness in fashion product

Project description

The project entails enhancing Thailand’s competitiveness through production of a variety of fashion products such as fashion footwear, fashion apparels, and fashion accessories. The fashion apparels that will be produced will include designer clothing such as jeans, dresses, active wear, lingerie, tops, for men, women and children. The fashion accessories will include bags, purses, bandana and jewelleries such as necklaces, bracelets, pendants, earrings and pendants. On the other hand, the footwear products will include shoes and a variety of sandals. These products will be sold both in the domestic and foreign market. The choice of producing these fashion products resulted from the fact that fashion industry in Thailand is still young and hence there is a high potential of growth compared to other countries such as UK and US. This will result into increased competitiveness of Thailand considering the fact that fashion industry is a major contributor towards Thailand’s economic growth accounting for approximately 17% of the total GDP (‘The fashion industry in Thailand’, 2007, p.2).

Project characteristics

The project will involve a number of activities to ensure that the products are effectively developed. These include:

Comprehensive Market research

A comprehensive market research will be conducted before production of these products. The research will be aimed at determining the feasibility of the project. Various market variables will be considered in conducting the research. These include consumer and competitor market research. Consumer market research will help in determining the consumers’ requirements for in relation to fashion footwear, fashion apparels, and fashion accessories and jewelleries. In addition, through consumer market research, it will be possible to identify diversity in the consumers’ tastes and preferences with respect to the fashion products. The result of the research is the products that will be produced will result into high utility. This will ensure that the products are competitive in the international market.

On the other hand the objective of competitor market research is to identify, the trend of other players in the fashion industry. It will also aid in the identification of the gaps that have been left by these players. This will enable effective capitalisation of these gaps in the process of producing these products. Competitor research will be conducted with reference to both the local and foreign players within the domestic market.

Developing the concept through product designing

To meet the diversity of fashion products demand amongst the consumers, the project will also incorporate the concept of product designing. This will involve generating ideas, developing the concept and testing them before the actual production of the new fashion products. The market research conducted will aid in the effective designing of these products. This is due to the fact that the consumers will aid in the process of generating ideas necessary to design fashion products that will be competitive in the global market.

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Identification of source of raw materials

The fashion products will be produced from a variety of law materials so a as to meet the diverse customer demands. To ensure effectiveness and efficiency in the designing and production of these fashion products, various sources of raw materials will be identified. Identifying alternative sources of raw materials will help in ensuring that there is steady supply of the raw materials. This will ensure that these fashion products are effectively produced and supplied to the market all year round.

In selecting the supplier of the raw materials, various factors will be considered. These include the cost, quality of raw materials, and the efficiency of the supplier. This will help in ensuring that these fashion products are effectively produced resulting into customer satisfaction due to its quality.

Time duration

It is expected that the project will be completed within a period of six months. This duration will be sufficient to enable effective analysis of the project. For instance, it will be possible to identify gaps that might have been left during process of product designing. This means that the final products will result into an increase in Thailand’s competitiveness in the global market.

Quality control

For these fashion products to result into a high competitiveness in the local and foreign market, a comprehensive quality control will be integrated in their production process. Quality control will help in ensuring that they meet the international standards. In addition, quality control will be integrated by incorporating the concept of pilot project. The pilot project will involve producing sample products that will be sold to a small market segment. The response from the market will form the platform for determining the market response. This means that it will be possible to determine whether the various fashion products will be successful when eventually launched in the market.

Local contents to be used

Leather

Leather will form the main raw material which will be used to produce fashion footwear products which include a variety of shoes and sandals. It will also be used to produce other fashion accessories such as bags, purses, and belt. The leather used will be sourced from the local market. This is enhanced by the fact that Thailand has well established tanning industry that has been in existence for sixty years. The local industry provides a variety of leather from different animals such as buffaloes, crocodiles, cows, reptiles, and birds. Leather from buffaloes and cows are in large supply in the local market compared to those from other animals such as reptiles and birds. The industry supplies a sufficient amount of leather for the production of fashion footwear and fashion accessories.

Natural Rubber

In producing the fashion footwear, rubber will be used in making their sole. Southern Thailand is well known for its high production of natural rubber. This has made Thailand to be the leading country in the production of natural rubber in the world. In 2006, the country’s total rubber production was above three million tonnes. Approximately 90% of the rubber that is produced in Thailand is for the export market. It is estimated that rubber production will increase with a rate of 4.4% during 2007-2009 (‘Thailand: world supplier of natural rubber, 2009, p.1). The rubber that will be used in producing the sandal will be sourced from the local market. The high supply of rubber in Thailand increases the probability of the sandal being produced cost effectively. In addition, producing the fashion footwear will ensure that these products have a high durability and hence a long shelf-life.

Dye

The dye that will be used in producing these fashion products will be sourced from the local industry.

Silk

The silk that will be used in the production of fashion apparels will be sourced from the local market. Thailand silk is specially produced which enables it to be of high quality. By utilising this silk, the fashion apparels will be of high quality making them to be competitive in the market.

Gemstones

Gemstone will be used in the production of the jewelleries. Thailand has a large quantity of gemstone reserves. This makes it to be a major exporter of gemstones. By utilising gemstone in the production of jewelleries, Thai’s jewelleries will be competitive in terms of pricing due to the availability of raw materials.

Human resource

Fashion footwear production is labour intensive. Thailand has a well established labour market necessary for the production of footwear. The labour market is also very efficient which results into increased labour productivity. This is due to the fact that the education system is well developed which results into a skilled human resource. The human capital necessary for the implementation of the project will be sourced from the domestic market.

Some of the human resources to be included in the project include project management team, designers, artisans, market research personnel, procurement personnel and the production personnel. The project management team will ensure that the project is well implemented and controlled. For instance, the project manager will ensure that the set milestones are achieved. In addition, the project management team will enable effective identification of possible deviations that can result into failure of the project attaining the desired goal. Designers from the local market will be used in the process of designing the various fashion products. This is due to the fact that they understand the local footwear market more effectively. Market research personnel will ensure that there is effective identification of the market variables necessary for the production of the fashion products. The procurement personnel will help in ensuring that raw material supplied for the production of the fashion products is of high quality and is effectively procured.

On the other hand, Thai artisans will ensure that the jewelleries are effectively crafted to meet the local and international market demand.

Potential rivalry

Competition from local firms

The project faces intense competition from already established fashion product manufacturing companies in Thailand. Some of these firms are locally owned while others are foreign owned. Examples of firms that will result into increased rivalry include Tong Material Footwear Limited, Thaitopleather Limited, V.C Industry Company Limited and Pearl of Siam 2004 Limited. Foreign domestic competition will result from the venturing of multinational shoe manufacturing companies especially Bata Company. These firms have an already developed competitive advantage within the fashion footwear industry. For instance, Thaitopleather is well known for its wide variety of leather products such as leather coin and clutch wallets, purses, briefcases, shoulder, bags and shoes (‘Thailand leather goods companies, Thailand leather businesses’, 2009, 3-4).

Tong Material Footwear Limited and V.C Industry Company Limited have been in existence in Thailand footwear industry for twenty years.This means that these firms are well conversant with the trends in Thailand’s fashion footwear industry. Tong Material Footwear Limited is the leading in the manufacture of various shoe components in Thailand. The firm has also got a wide market scale. This is due to the fact that it has been listed in the Thailand Exporter List enabling it to venture into the international market through exportation. On the other hand, V.C Industry Company Limited is a well known firm and its products have been accepted by consumers of different races in Thailand. In addition, the firm has a well established distribution system in the local market. This is evident from the fact that it has established departmental stores in all the provinces. This enables the firm to effectively meet the rising demand of the consumer in relation to footwear. The firm also has employed 500 employees. This enables it to conduct its operations effectively in the entire market. It has also established a strong financial base which is enhanced by its average annual revenue which ranges between $ 1million and $2 million (‘V.C Company Limited’, 2009, 1).

Other domestic firm that pose intense competition to the project include U Day Company Limited and Thai International Handicraft Limited. These firm specialises in the production of a variety of fashion products such as apparels and leather products. They also have a superior human resource that enables it to produce and supply high quality products.

Competition from multinational firms

The project will also face intense competition from Bata which is a multinational company. Bata has already ventured into Thailand’s fashion product industry through foreign direct investment. The firm’s branch is known as Bata Shoe of Thailand Public Limited Company. Its principal activity involves manufacturing of fashion footwear and related fashion accessories. The firm’s brands include Bata, Bubblegummers, Weinnebrenner and Marie Claire. These brands are widely recognised due to their quality which has culminated into increased customer loyalty. The firm also has a well established distributional network in the domestic and foreign market. This enables its products to be accessible in the entire market resulting into increased customer satisfaction. The firm has a sufficient human capital. This is evident from the fact that it has employed 757 employees within its stores. This enables the firm to serve its customers effectively. In addition, the firm’s competitive edge also lies in its strong financial base resulting from its high level of sales. In 2008, the firm’s revenue amounted to $ 1.3338 billion. The strong financial base enables the firm to conduct its marketing process effectively (‘Bata Shoe of Thailand Public Limited-company profile snapshot, 2009, 1).

The competitive strength of the firm also lies in the fact that the firm has a well established technology that enables it to produce quality fashion products. The result is that the firm has been able to develop a good public image by supplying quality products to the customers. In addition, the management of Bata Shoe of Thailand Public Limited Company has integrated the concept of customer centric. This means that all the activities of the firm are aimed at ensuring that the customer is satisfied. The effect is that the firm has been able to develop and sustain a high level of customer loyalty.

Product differentiation strategy

To ensure that these fashion products are competitive in the local and foreign fashion product market, the product differentiation concept will be integrated. Porter (2005, 1) asserts that product differentiation enables a product to be unique compared to other competing products in the market. A number of strategies will be incorporated in the process of differentiation. These include:

Incorporating a variety of designs

Considering the fact that consumers have diverse product needs, a variety of designs will be incorporated in the process of producing the fashion products. In designing the products, age, gender, income level and social class as demographic variables will be considered. This will ensure that the concept of product diversity is effectively incorporated. In addition, consideration of these demographic variables will enable in effective integration of the concept of product customisation. In addition, it will also be possible to market these products to individuals of various social classes who are fashion conscious such as the celebrities. Handwork will be used in sewing some of the fashion footwear such as the shoes and sandals. Currently, there is an increased demand for hand sewn footwear products. The fashion accessories and jewelleries will be designed into various shapes.

Use of high quality raw materials and integrating quality control

The consumers’ objective in purchasing a product or service is to maximise his or hers level of utility. High quality raw materials such as silk, leather, gem and rubber will be ensured in the process of producing the fashion products. This will be done by sourcing the raw materials from the best suppliers in the market. This will ensure that the consumers obtain value for their money on purchasing these products.

For instance, to ensure that the fashion footwear lasts for a long period, pure rubber will be used in their production. Use of natural rubber will enable the footwear to withstand a high friction. The rubber will also help in ensuring that there is flexibility in the footwear. The fashion footwear will be produced in a way that will ensure that it is resistant to chlorine and salt water thus enhancing their durability.

In addition, quality control will be considered all the phases of producing the fashion products. This will help in ensuring that the final products meet the pre-defined standards.

Use of different leathers in the production of fashion footwear and fashion accessories

Various consumers have got different tastes and preferences in relation to leather products. To effectively meet the demands of the consumers, the fashion footwear and accessories such as bags and purses will be produced from different animal hides. Some of these products will be produced from pure leather from a single animal hide. In addition, the concept of blending will be integrated in producing bags, shoes, purses and apparels that are from a variety of animal hides. For example, some parts of these products will be made of crocodile leather while the other parts will be made of leather from the cow. This type of blending will ensure that the product appeals to a wide range of consumers.

Use of different colours

The concept of colour differentiation will be integrated in producing and marketing these products. This will be achieved by using different dyes in the process of producing the fashion products. By using different colours, it will be possible to create a diversity of effects that appeal to different consumers. This is due to the fact that different consumers are attracted to different colours. This means that the fashion products will appeal individuals of different cultures in the domestic and foreign market.

The fashion products will also be differentiated by ensuring that they are comprehensive. This will be achieved by through supplying other complementary products which will form a part of the product package.

Convenience

These products will be effectively positioned in the market. This will enable the consumers to access them more conveniently in the entire market. In the initial stages, credible local agents in the fashion industry will be used in supplying these products to the market before the establishment of regional depots. Use of already established agents will ensure that the products are effectively supplied to the market.

In addition, convenience as a differentiation strategy will be enhanced by supplying complementary products together with the various fashion products. For instance, various dyes will be supplied together with the footwear products. This will help in ensuring that there is effective use of the products by the consumers. This is due to the fact that the consumers will gain knowledge on how to maintain the products. Therefore, supplying complementary products will ensure that the products are effectively differentiated from the competing products.

Key enhances of the project

Effective Promotion

Promotion is a key element in the process of developing competitiveness of a country through innovation of fashion products.This is due to the fact that the industry is very competitive. Promotion will result into the creation of product awareness in the market. A variety of promotion methods will be incorporated in the process of marketing the fashion products. These include the following.

Advertisement

Various methods of advertising will be used. Some of these include creative advertising. Creative advertising will be incorporated by designing the various fashion products on bill boards. In addition, slogans will be used to communicate the product superiority to the consumers. The slogan to be used will be well developed to ensure that the consumers easily remember it. The bill boards will be located in strategic areas to ensure that a large number of consumers access the message.

Advertisement will also be conducted through the mass communication mediums such as the television, radio and print media such as magazines and newspapers. This will enable a large number of consumers to be aware of the product.

Integrating the concept of internet marketing

Online advertising will also be integrated to create awareness in the global market. This will be through designing a website through which the fashion products will be advertised. Online advertising will be enhanced by implementing the current electronic commerce technologies such as the internet. Through the internet, it will be possible for a large number of consumers to access product information.

In addition, on line marketing will be incorporated by entering into alliance with the already established online search engines such as Yahoo and Google. The various fashion products will be posted on the homepage of these search engines to ensure that it reaches a wide number of consumers.

Use of social networking tools

Promotion will also be conducted through use of the emerging social networking tools such as Face book, blogs, wikis and you tube. Currently, these social networking tools are increasingly being used to create product awareness in the global market. This is due to the fact that information technology has undergone rampant development thus enabling a large number of consumers to access product information. Use of You Tube as a promotion tool is more effective since it will be easy to post photos of the different varieties of the fashion products on you tube. In addition, You Tube is a cost effective method of creating product information and is accessed by millions of individuals daily.

Product promotion will also be conducted through the use of blogs. The blog’s name will be associated with the fashion products which will enable the customers to remember the blog name. The blog will be effectively designed to ensure that it provides information that the consumers are searching in relation to the product. Comprehensive product information will be posted on the blog. This means that the blog will act as an informative tool.

Government assistance

For the project to result into the expected competitiveness, it is necessary that the government supports the project. There are a number of ways in which the government can support this project.

Promoting the product in the export market

One of the ways in which the government can support the project is by organising national trade show on fashion products through the Department of Export Promotion (DEP). In addition, the government should also support this project by promoting these fashion products through the Bangkok Fashion City campaign. This will contribute towards creating competitiveness of Thailand’s fashion products both in the domestic and foreign market. The government can also enhance the promotion of these fashion products in the forthcoming trade fairs and exhibitions in the Bangkok International Fashion Fair (BIFF) that is organised by the DEP. Alternatively, the government should also support the promotion of the fashion products in the ELLE.

In addition, the DEP should also ensure that the local fashion product producers participate in tradeshows held overseas. This will facilitate the promotion of the fashion products in the global market.

Through the trade fairs and exhibitions it will be possible for the government to support marketing of the products both in the local and foreign market. This is due to the fact that these activities have a high probability of attracting a large number of potential consumers from all over the world.

Ease of accessing finances

The government can also support the project by ensuring that there is ease of accessing the financial capital to implement the project. This can be achieved by subsidising the rate of interest that is charged by the financial institutions to projects aimed at improving the country’s competitiveness through the central bank.

Research and development

Alternatively, the government can support this project by investing in higher education aimed at developing the fashion industry. This can be achieved through establishment of universities and other tertiary institutions. The effect is that the labour market will be effective thus increasing the country’s productivity potential. In addition, the efficiency of labour will increase the potential of conducting product innovation. This is due to the fact that there will be necessary staff to conduct research and development.

Intellectual property rights

New products that are innovated should be protected by the government to enable them survive in the local and foreign market thus contributing to the competitiveness of Thailand. The government can play a significant role in protecting the new fashion products innovated. This is through formulation of intellectual property rights such as the patent. The patent law will serve in ensuring that the new fashion products designs are exclusive possessed by the innovators for a given duration of time. This means that it will be possible for the new products to reap the financial benefit by restricting other designers from adopting these designs.

Benefits of the project

Upon implementation, the project will result into an improvement in the living standards of Thai citizens. This is due to the fact that it will result into creation of both direct and indirect employment. Direct employment will result from the fact that there will be individuals who will be contracted to undertake various activities such as project management, product designing and production and marketing. On the other hand, indirect employment will result from the fact that there will be individuals who will be involved in supplying the various variety of leather, silk, rubber and gemstones for the production of the various fashion products.

Through creation of direct and indirect employment, there will be an increase in the individuals’ level of income which will result into an improvement in their purchasing power. The ultimate effect is an improvement in the living standards of the citizens.

In addition, there will be an increase in Thailand’s Gross Domestic Product (GDP) since the project will contribute to economic growth. Increase in GDP will result into an increase in the per capita income and hence the living standards.

Ways in which the project will result into Thailand’s competitiveness

The project will enhance Thailand’s fashion industry in the international market. This is due to the fact that the products will be continuously innovated to ensure that they are competitive in the international market. It will also contribute towards Thailand’s long term development path in that it will enhance the growth and participation of Small and Medium Enterprises in the global market. For instance, fashion industry will enhance the performance of other sectors such as mining and production of silk, leather, and rubber.

Conclusion

Developing a Thailand’s fashion industry is one of the ways in which it can attain a high rate of economic growth. This is due to the fact that it will result into an increase in the country’s productivity. There is an increasing demand for fashion products in the global market especially those that are made from a variety of raw materials. By developing a variety of new fashion products, it will be possible for Thailand to improve on its competitiveness. This is due to the fact that there will be an increased demand for the country’s fashion products in the global market. This will result into an increase in Thailand’s international trade. In addition, the new products will result into an improvement in the livings standards of Thais.

Recommendation

  • The production of a variety of fashion products such as fashion apparels, fashion footwear, fashion accessories and jewelleries should be considered as a strategy to enhance Thailand’s competitiveness.
  • The government should invest in education to ensure that there is a sufficient supply of fashion designers in the local market.
  • The project should be considered in Thailand’s national agenda since it will result into the country’s long term development.

Reference

Bangkok Companies (2009). Thailand leather goods companies: Thai leather goods businesses. Web.

The Guardian (2009). Country profile: Thailand. Guardian.co.uk. Web.

Katja, T. (2002). Human capital in the growth of the Thai economy. Journal of economics. Vol. 1. Issue, 3, pp. 8-12.Chiang Mai, Thailand: Payap University. Web.

Porter, M. (2005). What is competitiveness? Centre for globalisation and strategy. Web.

Renee, S. (2007). Thailand: investing boldly in infrastructure. BusinessinAsia.com. Web.

Royal Danish Embassy. 2007. Sector overview: the fashion industry in Thailand. Danish Trade Council. Web.

Rubber Industry. (2009). Thailand: world supplier of natural rubber. Web.

Stephanie, G. (2006). Competitiveness of nations: the fundamentals. IMD World Book Competitiveness Yearbook. Web.

V.C.Company Limited. (2009). Company profile. Web.

Wright Reports. (2009). Bata shoe of Thailand public limited company: company snapshot. Web.

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