Stronger baht helps importers
Pranda Jewellery president Preeda Tiasuwan said yesterday that the surging baht had not buffeted the jewellery industry much because 60 per cent of its raw materials are sourced abroad. The adverse effect on exports from the strong baht is balanced by the benign effect on production costs.
He estimates the industry would continue to expand at the same rate as this year, or 7-8 per cent. But that depends on the price of gold, which is one of the main raw materials. The price has been increasing to a significant level throughout this year. The oil price is another worrisome factor. Oil and the weak dollar might dampen consumer confidence in the industry's main export markets such as Europe, Japan and the US, but the industry has penetrated India, China, South Korea and Taiwan in order to diversify the risk. While exporters in many industries are seriously suffering from the strong baht, which hit an eight-year high on December 1, firms including importers that sell in the domestic market have found the situation slightly favourable for their business. Three executives dealing in imported goods said the strong baht helped to increase their profits but only slightly. All of them will not mark down their prices, so the additional profit won't make a major improvement in their sales. Charnchant Krisadawat, marketing manager for OTT Footwear, the importer of Dr Martens footwear, said she saw no currency change during the latest ordering period and the next time to order products will be about the middle of January or February. She said the firm had many other expenses, including the 30-per-cent import duty, insurance premiums and transportation charges. It also had to face increasing demands for extra charges by department stores and shopping malls to help them promote products and venues during this festive season. Paisarn Buranapanich, assistant marketing manager for Playground Store - the operator of the Playground concept store on Soi Thong Lo and Manga by Playground at the CentralWorld shopping complex - said Playground stocked its various unique products such as gadgets on consignment. The company would pay suppliers only if the products are sold. Product costs vary according to the exchange rate during the payment period and some are not imported in big volumes. Wirach Pracharktam, managing director of Nam Silp Thai Eyewear, the importer of famous brands such as adidas, said the firm had placed small orders from its international suppliers and it would have to wait for two months for another shipment to be delivered in order to make another payment. Nitida Asawanipont The Nation
|
