• 
• 

Published on February 18, 2008

As the world's largest trade fair for consumer goods and gift products Ambiente dropped its curtain last week, several Thai exporters went back home with broad smiles on their faces for both immediate orders and follow-up deals. Not all, however, were so happy.

The Veterans

Candle Empire has been attending the fair for the past 15 years. To them, it is a must-not-miss trade fair. "We obtain most of our orders here," said regional export sales-division manager Jessie Lim.

"It is the world's best fair for household items and the gift industry," Lim said, adding that the timing of the fair was perfect as most buyers came with their approved budgets in hand. "They are ready to make purchases."

The first years of attending Ambiente were so successful that Candle Empire did not even have enough hands to write down the orders. "Customers were queuing up to give us orders. They didn't even bargain," Lim recalled.

But after the emergence of China, India, Vietnam and Eastern European countries in the candle industry, Candle Empire had to adjust its strategies. "We cannot compete on price because we have the most expensive labour among these countries. Hence, we focus on medium to high-end customers who can afford and are willing to pay for quality and design."

Claiming to be Thailand's largest-capacity candle-producer, Candle Empire uses only high-quality raw material and state-of-the-art technology and constantly updates its collections. "Our strength is production know-how," said Lim, adding that in the candle industry competition was about technology in production. Customers are very impressed if they cannot tell which technology was used to create such a product.

Even though the mood of Ambiente 2008 was not as "happening" as in previous years due to the cooled-down economy triggered by the US sub-prime crisis, Candle Empire is happy with the orders it has received. "We met both our old clientele and new customers," she said, adding that the surprise was that they had begun to receive orders from China. "It means China's medium to high-end market is expanding. It is a new market that we have to start pursuing," she said.

The Selected Rookie

Because Ambiente is so popular, thousands of companies have to go on the waiting list for a space in the fair, but Thailand's made-to-order wood- and leather-exporter Shepherd was invited to Ambiente and secured a booth without having to wait.

"I think we were selected because of our unique and fine products. The organiser would want to have companies with presentable products at the fair, to boost the image of the fair itself," said Shepherd's managing director Ngamnit Wijaithum.

Despite the cost, Ngamnit said it was worth it to attend. "It is the one that everyone wants to attend, both suppliers and buyers. We already export to the US, Europe and Japan. Our intention is to reach out to even more customers."

Owning both wood and leather factories, Ngamnit said Shepherd was able to create a unique blend of materials and turn them into several product lines, such as stationery and handbags. With delicate craftsmanship and functional yet classic design, the response from customers has been very good, said Ngamnit. "We have both immediate orders and ones that needed to be followed up. Customers from this fair don't just window-shop: they tend to be serious about their purchasing."

Ngamnit added that attending Ambiente was not only about getting orders, but also about updating oneself. "Attending an international fair on this scale, you get to see fashion and market trends as well as competitors," said Ngamnit, adding that she would definitely attend next year.

The Right Decision

Suburban Silk, producing contemporary design accessories made of Thai silk, attended Ambiente for the first time with Thailand's Department of Export Promotion (DEP). "It is very helpful, particularly on cost saving, as the DEP arranged for spaces and booth decoration and sponsored some sample shipping," said managing director Vanida Chansingthong. "Even so, one needs to have a six-digit budget to attend Ambiente."

Before coming to Ambiente, Vanida said she had had her doubts. "Thai exporters told me discouraging stories, such as that business was really slow here. Plus the cost of coming here is a big investment for any newly established SME."

But the urge to enter the European market, after already being successful in the US, prompted her to give it a go, and she said it had been the right decision.

"Exporters tell us this year is slow, but that does not mean buyers have disappeared," said Vanida, adding that from her own observation the possibility of getting customers at Ambiente was very high. "I would recommend any Thai exporter in this industry, if they can afford it, to come here."

Vanida will come back to Frankfurt next year and is considering if she should apply for a booth herself, which would give her more options to decorate it to fit her products.

An expensive lesson

Not everyone is satisfied with the outcome. Kwanchai Kraivitvatana, KP Square managing director, said that attending Ambiente did not always guarantee success. If you are at the fair but your booth is in the wrong location, it does not help."

The exporter of Italian-design, out-of-the-box clocks attended Ambiente for the first time with the DEP. His booth, together with a group of other Thai exporters, was located in a hall that was not near the main passageways and had relatively low traffic.

Kwanchai felt that the DEP, having brought Thai exporters for decades and knowing the exhibition halls very well, could have done more to promote the area. "We spent nearly Bt300,000 to attend. With the response we've got, it is very disappointing," he said.

Nonetheless, he took it as a lesson and remained positive about the fair, saying he would come back if he got a better location. "I have learned my lesson, albeit an expensive one," he said.

Sopaporn Kurz

Special to The Nation

FRANKFURT, GERMANY