Brands looking to enter Southeast Asia like Thailand may face some obstacles, when dealing with retailers, Distributors and wholeseller.
-A lack understanding of the market
-Unsuitable products
– intense competition
– and cultural challenges in localizing support, Marketing and logistic / delivery.
Speak with an Agent or Distributor in thailand
While Thailand doesn’t require local agents or distributors to be used, it is one the most effective and efficient ways to get into the Thai market. Like in any other asian country, Interpersonal relationships are a key part of Thai business culture. They drive business development as well as transactions. Thailand-based distributors and agents are familiar with local business practices and requirements. As such, they are well-equipped to execute and develop business in Thailand. Local agents and distributors are also familiar with the requirements of local business and can manage regulatory affairs, obtain import permits, handle customs clearance and manage other logistics for U.S. Exporters.
International exporters should invest enough time and attention to select a local partner. They also need to provide technical and marketing support. To establish a productive working relationship, it is important to maintain regular contact with local representatives.
The best way to find a distributor or agent in Thailand is to:
You can use the Partner Search Service, IPS and Virtual Introduction Service or Gold Key Service (GKS) which are available at the Commercial Section, U.S. Ambassador Bangkok.
An IPS report is a list of Thai companies that were interviewed and selected by your sector’s Commercial Specialist. These companies have reviewed your company profile and product literature, and indicated a strong interest in establishing a business relationship with you. Each Thai company that expresses an interest in your products or services will provide a profile of the company and contact information.
We recommend that you use our GKS if you intend to travel to Thailand after receiving the IPS report. A GKS will allow you to meet with potential Thai representatives one-on-one, book transportation and hotel reservations, and even accompany you to meetings. We can also arrange virtual meetings via videoconference for those who are unable to travel to Thailand, but still wish to meet with Thai candidates. We strongly recommend that you consider a similar service in another country if you are planning to travel to the region for one of our fee-based services. U.S. Commercial Service staff at the Export Assistance Center may be able to facilitate multi-market visits to the region.
You can also participate in Thai trade shows. This is a great way to test the market, find distributors or agents in Thailand. Contact the U.S. Commercial Section. For more information on regional trade events, contact the Embassy of Thailand.
Thailand offers companies involved in non-revenue-generating activities the opportunity to establish a representative or regional office. These offices are typically involved in market research and evaluation, provide quality control services and purchasing services to foreign head offices, and provide warranty support for products sold by Thai head offices.
The role and responsibilities of the distributor in Thailand
In Thailand many local expert explained that all of brand revenue comes through their distributors around the world. This is something brands do differently to its competitors. Ex: one of our distributors has an NDA and a special design design, this firms have a long-standing relationship that has allowed them to achieve a high level of competence in products. Expert explained that firms supports approximately 70-80% of customers directly of this local distributor. This is a perfect association of a Brand to Thai distributors: Win Win.
Other Brands dealing with electronic work with many local distributors and with an “early presence” in Thailand and other asian countries, good presence in Asia includes the diverse and collective customs and traditions of doing businesses. It is difficult to close deals without local representatives.
At its initial public offering (IPO), the company’s market capitalization was THB 6.30 trillion (approx. USD 179.95 millions MOSHI will be listed on SET and begin trading on the Commerce sector, Services industry group.
MOSHI, a lifestyle retailer that sells a wide range of products in trendy styles and high quality everyday use at a reasonable price, is known as “Moshi Moshi”.
Products under the brand Moshi Moshi
The majority of the products found in the stores fall under the company’s branding. Moshi Moshi stores carry exclusive designs for these products. There are 12 product categories, which include home appliances, stationeries and bags, as well as fashion items, beauty products, apparels and IT equipment.
The company’s dividend policy requires that the company pay no less than 40% of net profit after corporate tax and any reserves required by law and company regulations. This dividend payment can change depending on the company’s financial liquidity, operating results, plans for future expansion and economic conditions.
The best way to overcome barriers to entry is to develop long-term cooperation with local channel partners and mutual trust.
Business have to believed that their success in expanding their brand is dependent on their partnership with local distributors that can take their products to the next level. We choose local partners over going after the largest.
You have to understand that Thai distributors who are right for their market already have a local customer base they can tap into quickly. They are an inexpensive source of information and know the local market. They can help with product positioning and pricing strategies, local marketing customizations and managing any local needs.
there are anti-corruption laws in Thailand preventing and suppressing corruption and willful misconduct, so Brands have to be carreful.
Partnership or acquisition in Thailand : partner first always
The market is changing rapidly, and many components are getting more complicated. This requires a greater amount of advice from distributors
A global distributor or local channel partner can also be a consultant partner. This role is part of a larger ecosystem that includes proven development partner and wholesellers.
Case study
At its initial public offering (IPO), the company’s market capitalization was THB 6.30 trillion (approx. USD 179.95 millions MOSHI will be listed on SET and begin trading on the Commerce sector, Services industry group.
MOSHI, a lifestyle retailer that sells a wide range of products in trendy styles and high quality everyday use at a reasonable price, is known as “Moshi Moshi”.
Products under the brand Moshi Moshi
The majority of the products found in the stores fall under the company’s branding. Moshi Moshi stores carry exclusive designs for these products. There are 12 product categories, which include home appliances, stationeries and bags, as well as fashion items, beauty products, apparels and IT equipment.
The company’s dividend policy requires that the company pay no less than 40% of net profit after corporate tax and any reserves required by law and company regulations. This dividend payment can change depending on the company’s financial liquidity, operating results, plans for future expansion and economic conditions.
Contact us for futher information