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  • 6.7.5-MARKET PROFILES-IN-DEPTH INTERVIEWS ON PENETRATING THE THAI COTTON MARKET

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  • In-depth interviews on penetrating the Thai cotton market

    Chapter 6 - Market profiles - Thailand 

     
     

    Company A 

     

    Registered capital  THB 9 billion 
    Employees  1,200 
    Type of business 

    Manufacturer: yarn; woven fabric; bleaching; 100% bleaching cotton gauze product 

    Supplier: textile materials – sells own manufactured goods 

    Yarn manufacture 

    Spinning: traditional ring 100,000 spindles, compact K-44 5,000 spindles, O.E. 5,000 rotors  

    Fibre content: cotton 100%, polyester cotton blends (TC, CVC)
    Products: grey yarn, warp yarn, weft yarn, knitting yarn, hosiery yarn
     

    Source of cotton  The company’s 100% imported cotton lint comes from the United States (40%), Australia (35%) and Pakistan (20%). The amount of each order varies, depending on the available stocks. The total amount of cotton required monthly is approximately 1,600–1,700 tons. 
    Supplier   Cotton is directly ordered through brokers or United States-based Internet sites such as that of Cotton Incorporated. 
    Cotton requirement  The company requires 1–1.53" length, fibre fineness 3.5–4.9 micronaire, fibre strength 30–31 grams per tex. 
    Attitude towards
    cotton from West
    Africa
     
    • West African cotton is long staple, strong cotton.
    • The cotton harvesting method is poor.
    • It is difficult to extract the cotton seed and there are
    a lot of impurities.
    • The price is very attractive.
    • The cultivation of cotton is uncertain.
     
    Recommendation
    for penetrating the
    Thai market
     
    The most important factor is to reduce cotton contamination. After-sales service should be made available for more than a year. If problems occur, it can be very difficult to contact the cotton supplier to resolve problems. The company suggests that the best marketing method for African cotton would be to go through an agency or cotton trading company. Direct selling can generate problems relating to qualification, insurance and product claim. 

     

    Company B 

     

    Registered capital  THB 450 million 
    Employees  750 
    Type of business 

    Manufacturer: yarn; dyeing; melange top-dyed yarn  

    Supplier: textile materials – sells own manufactured goods 

    Yarn manufacture  Spinning: OE rotor
    Fibre content: cotton 100%, polyester 100%, acrylic 100%, rayon 100%, modal 100%, polyester cotton blends (TC, TVC), polyester rayon (TR), etc.
    Type: Staple yarn: carded, open-end
    Products: warp yarn, weft yarn, knitting yarn, dye yarn, hosiery yarn, knitting and weaving use, nep and slub effect, greige yarn
     
    Source of cotton 

    The company consumes 30% local cotton and 70% imported cotton. Of the imported cotton, 35% comes from West Africa. India and the Russian Federation are also cotton sources for this company. The cotton from
    West Africa does not pose problems even with its high contamination level, as the fibres are dyed prior to spinning. Their total purchase order is 3,000 tons per year, which is used for spinning cotton yarn using open-end spinning. Yarn counts are 20s–40s. Of the
    product, 80% is domestically used or sold; the remainder is exported. 

    Supplier  With a lead-time of one month, local cotton producers order directly from familiar producers to contact foreign producers. 
    Cotton requirement  The company requires 1.125" lengths, fibre delicate 3.5–4.9 micronaire, fibre strength 26–28 grams per tex. 
    Attitude towards
    cotton from West
    Africa
     
    • It is long staple cotton, and strong.
    • It is high-quality cotton.
    • It is cultivated through out the year.
    • It is around 5% cheaper than cotton from the United
    States.
     
    Recommendation
    for penetrating the
    Thai market
     
    The most important matter is a reduction in cotton contamination. 

     

    Company C 

     

    Registered capital  THB 150 million 
    Employees  200 
    Type of business  Manufacturer: yarn; woven fabric; technical textiles 
    Yarn manufacture  Fibre manufacture: cotton wool, cotton ball, cotton
    sliver, gauze100%
     
    Source of cotton  In 2006, the company purchased 90% of its cotton from the United States, Australia and Zimbabwe, while 10% was locally purchased. African cotton is regarded as being longer than United States cotton and whiter
    than others. Thai cotton is moderate in quality but production is insufficient. The company prefers African cotton due to a better offer than that from the United States. Previously, they also used cotton from Togo, but this cotton is very red, which adds to the cost due to cleaning. Chinese cotton is regarded as cleaner but not so strong. The quality of Indian cotton is good but there are communication problems between suppliers and the company.
     
    Supplier  The company finds it convenient to employ a foreign broker who is familiar with the cotton characteristics of various countries. 
    Cotton requirement  The company requires 1.125" length, fibre fineness is 4 micronaire, fibre strength 28 grams per tex. 
    Attitude towards
    cotton from West
    Africa
     
    • Quality of cotton in each year is inconsistent due to climate. 
    Recommendation
    for penetrating the
    Thai market
     
    Improvement of cotton impurities should be given the first priority.