# 01
# 02
Thai Garment Industry
Organizational Characteristics
and
Strategic Factors
that Affect Corporate
Performance
# 03
Chavalit Nimlaor – (Presenter)
Dr. Jirasek Trimetsoontorn
Dr. Wanno Fongsuwan
Administration and Management College
K...
# 04
# 05
1. Abstract/Research Methodology
2. In recent years – 2008 data
3. How far have we fallen and why? - 2013
4. The way ...
# 06


Thai Garment industry to continue
contraction



Quantitative data was obtained from 178
TGMA Association members...
# 07


Thai garment industry employed over
1 million people per year



Revenue exceeding 100 billion baht



Thailand’...
# 08
Thai garment industry had over
1 million workers
# 09
Thailand had 4,385 establishments
# 10

How far have
we
fallen
and why?
# 11
# 12


Perpetual state of decline



Feedstock import



Shortage of skilled labor



Rising mandatory government labo...
# 13
# 14


‘Thailand in Turmoil over increase in
minimum wage’ – October 2013 headline



Minimum wage increased to 300 baht...
# 15


Lampang Province wages went up 81%
Tak Province wages increased 85%



Minimum wage of 300 baht day started



M...
# 16


Baht appreciation



Raw material price increases



Labor shortages



Trade liberalization-especially China

...
# 17


2012 – exports plunged nearly 14% yearon-year to US$4.27 billion



2012 - Apparel exports fell 10% year-onyear t...
# 18

The way out
of the dark
2014
…and this study
# 19
# 20
# 21
To study the relationships and
influencing factors of
Organizational Characteristic
and Corporate Strategy
that influ...
# 22

Organizational
Characteristics

Investment
Size

H2

Teamwork
Leadership
# 22
Investment
Size
# 22
Leadership
# 22
Teamwork
# 23
Research and
Development
(R&D)

Product
Differentiation

Corporate
Strategy

Branding
# 23
Research and
Development
(R&D)
# 23
Product
Differentiation
# 23
Branding
# 24
Profits
H2

Corporate
Performance
Asset
Value

Competitive
Advantage

Cost
Advantage

Customer
Responsiveness
# 25
# 26


Entrepreneurs must have a clear
strategic vision keeping pace with
change



Businesses must have timely customer...
# 26-A
#27
The key factor that most directly influences
the apparel industry performance is:
Corporate Characteristic





The...
#28


Thai social and economic conditions
have changed dramatically



Very limited skilled Thai and foreign
workers


...
#29


Thai wholesale and brand name
industry very strong in ASEAN



BUT



It is necessary to put Bangkok on the
globa...
#29


ASEAN growth strengthens the Thai
regional fashion supply chainnel
(manufacturer, retailer, logistics,
supplier and...
#30


Thailand must become a global garment
and fashion industry exporter through
large manufacturers



Maintain high v...
#31


Relocate or outsource production
operations



Or…transform to be a fashion agency for
SME garment or fashion comp...
#32


Become an ASEAN wholesale business by
supplying new fashions, ‘quick style
change’, ready stock or quick response
a...
#32

Promote Thailand as a
tourist and fashion
destination!
#33

Thank you for
your time
and
attention.
#xx
#xx
#xx
#xx
#xx
#xx
#xx
#xx
#xx
#xx
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Icbes presentation mr chavalit

  1. 1. # 01
  2. 2. # 02 Thai Garment Industry Organizational Characteristics and Strategic Factors that Affect Corporate Performance
  3. 3. # 03 Chavalit Nimlaor – (Presenter) Dr. Jirasek Trimetsoontorn Dr. Wanno Fongsuwan Administration and Management College King Mongkut’s Institute of Technology Ladkrabang
  4. 4. # 04
  5. 5. # 05 1. Abstract/Research Methodology 2. In recent years – 2008 data 3. How far have we fallen and why? - 2013 4. The way out of the dark - 2014 & beyond 5. What does the research tell us? 6. Conclusion/Recommendations
  6. 6. # 06  Thai Garment industry to continue contraction  Quantitative data was obtained from 178 TGMA Association members  Qualitative data was obtained from 10 senior level industry executives
  7. 7. # 07  Thai garment industry employed over 1 million people per year  Revenue exceeding 100 billion baht  Thailand’s top export sector  Totally integrated production and supply chain cycle
  8. 8. # 08 Thai garment industry had over 1 million workers
  9. 9. # 09 Thailand had 4,385 establishments
  10. 10. # 10 How far have we fallen and why?
  11. 11. # 11
  12. 12. # 12  Perpetual state of decline  Feedstock import  Shortage of skilled labor  Rising mandatory government labor costs  ASEAN competitor’s undercutting Thai companies
  13. 13. # 13
  14. 14. # 14  ‘Thailand in Turmoil over increase in minimum wage’ – October 2013 headline  Minimum wage increased to 300 baht day  Many rural located factories had to close  Provinces use to set their own minimum wage
  15. 15. # 15  Lampang Province wages went up 81% Tak Province wages increased 85%  Minimum wage of 300 baht day started  Many rural located factories had to close or move outside Thailand  Provinces use to set their own minimum wagethis was the reason for their competitiveness
  16. 16. # 16  Baht appreciation  Raw material price increases  Labor shortages  Trade liberalization-especially China  Daily minimum wage increase to 300 baht
  17. 17. # 17  2012 – exports plunged nearly 14% yearon-year to US$4.27 billion  2012 - Apparel exports fell 10% year-onyear to US$2.95 billion  Devastating floods
  18. 18. # 18 The way out of the dark 2014 …and this study
  19. 19. # 19
  20. 20. # 20
  21. 21. # 21 To study the relationships and influencing factors of Organizational Characteristic and Corporate Strategy that influence the Corporate Performance of the Thai garment industry.
  22. 22. # 22 Organizational Characteristics Investment Size H2 Teamwork Leadership
  23. 23. # 22 Investment Size
  24. 24. # 22 Leadership
  25. 25. # 22 Teamwork
  26. 26. # 23 Research and Development (R&D) Product Differentiation Corporate Strategy Branding
  27. 27. # 23 Research and Development (R&D)
  28. 28. # 23 Product Differentiation
  29. 29. # 23 Branding
  30. 30. # 24 Profits H2 Corporate Performance Asset Value Competitive Advantage Cost Advantage Customer Responsiveness
  31. 31. # 25
  32. 32. # 26  Entrepreneurs must have a clear strategic vision keeping pace with change  Businesses must have timely customer response while maintaining margins and competitive advantage
  33. 33. # 26-A
  34. 34. #27 The key factor that most directly influences the apparel industry performance is: Corporate Characteristic    The industry must embrace R&D which raises the international image The importance of branding Leadership and workforce teamwork
  35. 35. #28  Thai social and economic conditions have changed dramatically  Very limited skilled Thai and foreign workers  Labor intensive industry  ASEAN 2015 – Thailand cannot compete with CLMV countries (Cambodia, Laos, Myanmar and Vietnam)
  36. 36. #29  Thai wholesale and brand name industry very strong in ASEAN  BUT  It is necessary to put Bangkok on the global fashion industry map to compete with London, Paris, New York, Milan and Tokyo
  37. 37. #29  ASEAN growth strengthens the Thai regional fashion supply chainnel (manufacturer, retailer, logistics, supplier and distributor channel)  Become a leader in fashion development  Become a leading ASEAN garment exporter to a potential 650 million consumer and labor supply market
  38. 38. #30  Thailand must become a global garment and fashion industry exporter through large manufacturers  Maintain high value operations in Thailand by focusing on marketing, administration, finance, R&D, logistics control, technical support, production and quality assurance
  39. 39. #31  Relocate or outsource production operations  Or…transform to be a fashion agency for SME garment or fashion companies with their own retail operations  Develop regional branding and expand into the ASEAN market like Fly Now, Saha, Pattana Group
  40. 40. #32  Become an ASEAN wholesale business by supplying new fashions, ‘quick style change’, ready stock or quick response and outsourcing sewing operations to local operators or neighboring CLMV countries  Join together as a cluster/Co-Op to work in the supply chain for the public sector
  41. 41. #32 Promote Thailand as a tourist and fashion destination!
  42. 42. #33 Thank you for your time and attention.
  43. 43. #xx
  44. 44. #xx
  45. 45. #xx
  46. 46. #xx
  47. 47. #xx
  48. 48. #xx
  49. 49. #xx
  50. 50. #xx
  51. 51. #xx
  52. 52. #xx

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