Fashion firms rushing to try on Afta

[CrazyExpat]

Thailand's multi-billion-baht fashion apparel business is changing rapidly as producers chase benefits from zero import tariffs under the expanded Asean Free Trade Area (Afta) agreement that took effect this month.

Thai brands as well as trading firms representing global labels are exploiting new market opportunities in the region.

Patcharawan Boonnumsup, a director of the Thai Garment Manufacturers Association (TGMA), said that dozens of international brands were planning to make their debuts in Thailand this year. They will enter the market on their own or will be imported by Thai manufacturers and distributors. At the same time, some firms are studying launching their own brands in the long term.

LEM Co, the owner of Espada fashion, yesterday introduced f.fashion from France. Central Marketing Group and Blue Corner are also considering importing more international brands this year. DKSH Co, the distributor of Levi's jeans, is looking to open new markets in Southeast Asia by the end of this year.

There is a long waiting list of new international labels to occupy space in leading retail stores, said a source from a leading department store.

Somphol Chaisiriroj, vice-president of ICC International Plc, the Saha Group affiliate that distributes Arrow apparel, said the company welcomed the competition.

''Competition is good but the point is how well local producers can refresh their brands and adjust to cope with the more intense competition and offer innovative items,'' he said.

ICC yesterday launched Jewel of Excellency & Arrow, a new Arrow shirt collection, which uses Swarovski crystals as an element on the shirts.

''We saw a great opportunity in im porting raw materials and product elements from other countries in Southeast Asia or even China at better prices,'' Mr Somphol said.

ICC International has been actively involved in the local garment industry from upstream by having its own weaving and yarn factories. As a result, the company can develop its own fabric and clothing materials, giving it an edge over other players in the market.

Mr Somphol suggested Thai brands pay attention to their strengths and do things that imported brands cannot do.

Kevin Corning, general manager of the fashion apparel division at DKSH (Thailand) Limited, the Thai distributor of Levi's jeans, said the strong performance of Levi's here would help it open a new market in Southeast Asia.

DKSH has had a long partnership with Levi's. Also, it owns a sewing and laundry factory in Thailand and under Afta it can now export more products to Asean countries.

However, Mr Corning said the main focus of Levi's remains Thailand as demand for jeans products was expected to be higher than last year. DKSH has spent US$1 million to install new equipment for producing more complicated jeans and upgrading production procedures. The production capacity of Levi's products is expected to rise by 15-20% this year.

DKSH expects its sales will grow by 10% this year. The company yesterday introduced the new Levi's Indigo iconic line to attract teens and young people. Levi's has chosen Tony Rakkaen and Ploy Horwang as the new presenters for its jeans.

Levi's now has 135 shops in Thailand and between five and seven will be added this year.

In 2009, the Thai jeans market was valued at 5 billion baht and Levi's controlled an estimated 40% share.

Relate Search: LEM Co, DKSH Co, Patcharawan Boonnumsup, Thai Garment Manufacturers Association

http://www.bangkokpost.com/business/marketing/31457/fashion-firms-rushing-to-try-on-afta