Economic Thailand’s economy expanded by 3.5% in the first half of 2017 which is stronger than expected, ledby a surge in farming output and tourism. GDP growth in 2017 is at 3.7% from from the second quartercompared to 3.3% from the first quarter, above the expectation of 3.2% with an increasing trend whichindicates the positive effect for overall economic. (Nguyen A.
, 2017) Regardless of the growth outlook thathas been strengthened on the back of recovery in global trade, the domestic demand continues todisappoint. Due to the military coup, the political uncertainty has withheld the investment of private sector,while consumer spending remains moderate. However, the end of a mourning period might unleash thestagnant demand.
Speaking of sport retail industry, it grows conversely to Thai economic downturn in the past fewyears. With over 22,000 million baht of total market value of sport retail industry in 2015, it generates about20% of market growth in each year. (M., 2017)Competitive In Thailand, sport retail industry values over 22,000 million baht in year 2015.Sport retail market share is divided into three 3 main segment which are low, middle, and high class. 50%of market share are sold to middle class, 30% for high class, and 20% for low class respectively.
Withinsportswear, sports apparel accounts for a higher share than sports footwear: with a share of 74% in 2016.Adidas and Nike maintained the leading positions in 2016, each holding a value share of 8%, thanks totheir iconic brands, which are trusted by Thai consumers. (M., 2017) Over the forecast period sportswear industry is increasing steadily. Sales are likely to be driven mainly by sports-inspired and performance apparel and footwear. Due to the ongoing health and wellness 5 trend, product developments, especially product collaborations, will be a key factor driving sales.
Celebritiesand other well-known people will be the key influencers, with brands acquiring greater exposure amongstthe target audience. With the tremendous growing sport trends, sport retail industry is forecasted to growsover 30,000 million baht of total market value in following years. Sociocultural There are two consumers’ trends that may be related to the distribution channel of this product.1. Strong growth in sportswear and sports accessories The analysis shows pockets of strong growth in several product categories, reflecting Thailand’srising affluence. For instance, small indulgences such as ice cream, cakes, chocolates, fresh milk, juices,bottled water and sportswear. Recently, Thai consumers are now wearing sportswear for both fashion andfunctional purposes, thanks to the ongoing health and wellness trend which contributes to a healthy valueof CAGR of 8% at constant 2016 prices of sportswear products. (Online M.
, 2017)2. E-commerce penetration E-commerce in Thailand is growing at double-digit rates, as a result of the increasing use of theinternet, smartphones, and credit cards. About 40% of purchases by Thai consumers are digitallyinfluenced, and consumers reported conducting 50% to 60% of their online research for a wide variety ofproducts on websites and apps such as Messenger, Instagram, Line, Kaidee, and Facebook.Technological Rigorous practice and intensive training helps athletes break records and accomplish their goals.
Besides the arduous hard work, functional and innovative sportswear provides a competitive edge to sportspersons, bringing them a step closer to their objective of winning. The sportswear industry strives to designtechnologically advanced and technically innovative apparels to stay ahead in the race. Sportswear is one of the fastest growing sectors of the textile industry. New and innovative fabrictechnologies are being used to help the wearer improve his performance. Fibers that are light-weight, soft,easy to maintain, do not shrink, and dry quickly are normally used.
Polyester remains a universal favoritecomponent of all sportswear manufacturers, owing to its high resistance to moisture and increaseddurability, which form the basic requirements of fabrics used in sports apparels.Legal According to Duty Free/Quota Free: DFQF in 2016, the product falls into HS Code 9506.91 Articlesand equipment for general physical exercise, gymnastics or athletics which is exempted from import duties.Thus, the company takes responsibility only on VAT (Value Added Tax).1