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The move forced OEMs in Thailand to seek new clients, including Grand Sport.

As a result, Grand Sport is able to expand its product lines into serving the Prathom-level student market, because local OEMs have production costs that are 30 to 40 per cent lower than its own, said Suchada Nimakorn, chief executive officer of Grand Sport Group.

"Grand Sport has benefited from the shift, as we can now sell products at lower prices that match the market situation," she said.

She added that this was the first time in the firm's 50 years in the market that it has provided sportswear for Prathom students. Its traditional markets are high-school students, athletes and other adults.

One reason the company is now targeting younger students is the growing sportswear market in the provinces. Upcountry customers prefer highly competitive pricing, which Grand Sport is now able to offer to this segment.

"We believe the new product line will drive our sales to grow by 20 per cent from Bt800 million last year," Suchada said.

Year-on-year sales growth in the first quarter was 10 per cent, lower than the target of 20 per cent due to the economic downturn.

Moreover, because the government has no policy to promote sports, which would stimulate the sportswear and sports-equipment sector, the market this year is unlikely to grow, she added.