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Makers and exporters of leather goods should shift their focus to medium- and high-end markets in order to maintain competitiveness amid cheap products from China, according to an industry veteran and a study by Chulalongkorn University.

To help increase efficiency and meet demands, the government must help manufacturers cut their costs and promote research and development, said Pichai Viriya-Amphanond, director of Unique Trading (Thailand).

He said the global crisis meant that all countries were facing the same problems, including a drop in consumer spending. Moreover, producers should diversify and adapt materials to attract new buyers, he suggested.

Demand for high-quality leather goods has increased in high-end markets such as Europe.

A Chulalongkorn study, supported by the Foreign Trade Department, has found that Thai leather goods have room to grow in the export market, despite competition from China. Apiradi Tantraporn, director-general of the department, said producers must enhance their design and quality to serve consumers with high purchasing power.

Samart Chisakul, associate professor of Chulalongkorn University, said the international price index for leather goods increased by an average of 8.4 per cent per year. This indicates that people accept higher prices for these goods. So, Thai enterprises should focus on high-quality goods to serve high-income consumers, he said.