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Could Thailand be an alternativeto India for consumer goods?
Refayet Ullah Mirdha
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The import of Thai products is growing in Bangladesh on the back of higher demand and good quality in a country where the consumer class is fast-expanding.
Babywear, cosmetics, fashionable footwear, fancy products, spices, fresh vegetables, fruits and foods, nuts and snacks segments are full of Thai goods.
Thai boutique hotels, restaurants, beauty parlours and salons are springing up in major cities like Dhaka, Chattogram and Khulna as well as in many district towns.
Local businessmen choose the Southeast Asian nation as an alternative to two major sourcing destinations: India and China. In fact, Thailand has become a very popular alternative destination, especially to small and medium traders mainly for two reasons: better quality and geographical location.
Many businessmen don’t want to rely on India and China. Goods are smuggled into Bangladesh from India as the two countries share more than 4,000 kilometres of borders, while China can’t always supply quality food at affordable prices.
For instance, Antu Kareem, managing director of Pentagon International, a consumer goods distributor, began stationery business in Bangladesh in 2000.
He used to import ball point pens from India. His business had been on a roll as the demand was high. He was an agent of nearly 15 Indian consumer goods in Bangladesh.
But, his profitable business faced a major setback all on a sudden when similar kinds of branded goods started slipping into the country through borders. The business nosedived overnight.
He desperately tried to keep his business afloat, but to no avail.
With the changed situation, he also changed his sourcing destination and chose Thailand, as there is no possibility of the products being smuggled into the country.
“I did not choose China as people do not have faith in Chinese goods. Japan is a very expensive destination and I also have to follow a lot of rules and regulations if I do business with Japan,” Kareem told The Daily Star.
The US could have been another potential source, but he did not choose the American market as it required a lot of capital.
“I thought only Thailand can be my perfect choice in Asia as I can buy all goods at competitive prices with shorter lead time and quality goods.”
He started business with Thailand in 2005. Today, Kareem is the sole distributor of Kodomo-branded goods in Bangladesh. Currently, he distributes branded items such as shampoo, soap, toothpaste, face powder and utensils.
Kareem’s annual turnover is Tk 100 crore and sells Tk 40 crore worth of Kodomo-branded goods in the country.
“My business is very good now and I don’t have any fear about smuggling.”
Thailand is far away from Bangladesh. However, geographically it is closer to the country compared with other Asian countries. “This is the biggest advantage of doing business with Thailand,” he said.
Many local small and medium-sized businessmen can’t afford the business of consumer goods with the US and European countries, although there is a big demand for the goods from the regions.
“However, Thailand can offer all those goods at competitive prices,” Kareem added.
Like Kareem, Abdus Salam, head of business for food division at Fair Group, is another businessman who supplies snacks of the Thai brand Tong Garden all over Bangladesh.
Every year, Salam, who previously had trading relations with India, imports $1.5 million worth of snacks of the brand and distributes them through his agents. He has been doing business with Thailand for the last 10 years.
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