There are 3 major ceramic manufacturers’ provinces in Thailand, Lampang, Samut Sakorn, and Nakhon Prathom. Ceramics products can be categorized into many types, for example; tiles and sanitary ware, tableware and cookware, and electric ware.
Thai ceramic industry has continuously developed its production. The origin ceramic production has been improved with additional materials in order to upgrade its products. Thailand therefore can produce ceramic products for using in communication equipment, auto parts, medical equipment, and electric tools, those of them are called “advanced ceramics”
Tableware takes a leader in total Thailand’s ceramics export, while tiles and sanitary ware, and gift come after. Due to economic crisis in 2009, all products’ order was slow down. When compared to last year, the value of ceramics’ export in 3 quarters decreased by 43.3%. It shows that Thailand’s ceramics is still relied on foreign customers’ purchasing power. Besides, it shows that Thailand’s ceramic cannot hit the market when customers have less purchasing power.
The main threats that cause Thailand’s ceramics cannot compete effectively and continuously in foreign market comes from both internal factor and eternal factor
The internal factor is ineffectual logistics management in Thailand. It therefore the whole supply chain cannot proceed effectively (Supply chain is including the entire production process from raw materials producers, ceramic manufacturers, designers, wholesalers and retailers, and etc.) the problems that can be seen obviously are raw materials purchasing. Manufacturers often buy raw materials which nearby the factories without forecast the situation, but buy materials based on order. Sometimes the result comes to the delay in production and incapable in responding customers in time. In addition, the lack of technology did not support the entire production process. Therefore, Thai manufacturers have to rely on workers which have more expense in production process.
Also, marketing management is the obstacle for Thailand’s ceramic growth. Thai manufacturers only understand that the meaning of marketing is the promotion dealing with customers’ attraction. The actual meaning of marketing includes quality development, pricing tools, responding customers quickly. The lack of understanding in marketing, most Thai ceramic manufacturers only aim for the margin that comes from an increasing in sales without paying attention in a development in other sections. Therefore the income still varies on external factor like foreign customers’ purchasing power, trend that changes all the time. To hit the market stably and continuously, the above other marketing method can help Thailand ceramics stay last in the market. Thailand’s ceramics will be able to establish the market securely without the support from the government.
The world economic cannot be controlled and affected domestic ceramics industry. For example, an increase in production cost, LPG fuel that is used in ceramic burning. Gold also affects the production cost, it is used in decoration. Therefore, the product’s price is not stable. Manufacturers have to bear the principal cost. In addition, the baht strong is higher, resulting in more expensive price when compared to competitors’ product.
Moreover, the social also affects the industry like trend and taste of consumers. These affect the decision of buying especially ceramic ware for decoration. It has to be improved and changed design all the time.in order to look trendy and modern and able to meet customers’ needs that always changes.
In conclusion, Thailand’s ceramic has no strength and ability to take an advantage over competitors obviously. All products are inferior to competitors’. In the net chapter we will show the overview of foreign competitors and give you suggestion to maintain the competition in the further.
Reference: Business research November 2009, the office of industrial Economics March 2010, the office of industrial Economics September 2011