BANGKOK, 7 June 2012 – The Federation of Thai Industries (FTI) has advised the Thai leather industry to enhance it strategies to stay ahead in the competition once the ASEAN Economic Community (AEC) forms in 2015.
President of the Shoes Industry under the FTI Thamrong Thitiprasert said that the Thai shoe industry must brace itself for the increased competition once the AEC comes into effect in three years’ time. Thus, he suggested that shoe-makers shift their strategies from focusing on low wage rates to improving their product quality in order to remain in the game against such rivals as China.
Mr. Thamrong also suggested that export manufacturers should start looking for a production base in countries with low initial cost in terms of wage and benefits. Meanwhile, factories which focus on domestic distribution should undergo a major transformation given products from neighbouring countries, especially Indonesia and Vietnam, are starting to pour into Thailand. Therefore, Thai manufacturers should also consider distributing their products overseas.
Meanwhile, the Industry Ministry has analyzed that Thai leather entrepreneurs should prepare for the AEC by reducing production cost, improving product quality and design, delivering products on time, providing efficient after-sales services and adapting the products to meet with demands from the global fashion market.