The rapid change in market demands due to liberalisation and modern trade patterns have led garment manufacturers to play a new role as traders to build loyalty among their overseas customers.
"If we can serve all the customers' requirements, they will be committed to place orders only in Thailand and help find new customers," Dej Pathanase-thpong, managing director of Thong Thai Garment, said last week.
Foreign buyers now demand Thai exporters to help source products that are out of their production line.
Thai manufacturers have to find other qualified producers to keep the relationship with customers.
Foreign trading partners have expanded business through their suppliers in Thailand. This strategy helps them reduce the cost of doing business, paying only for goods, without making any investment here.
"Many buyers have implemented the new strategy with their alliance in Thailand for almost a year.
"This also forces Thai manufacturers to create a new trading business instead of focusing on manufacturing as in the past. We have played more of a role as trader," Dej said.
Thong Thai has also set up a division to manage only a trading business from sourcing qualified producers, placing orders for foreign trading partners and performing quality inspection to arranging for shipment. Like a middleman, the export price will be quoted by Thong Thai instead of the producers.
"As a local manufacturer we can find them what they want, so they trust us," he said.
With the new trading business, the company can boost not only exports but also local alliances. That's because it has to supervise its Thai trading partners to develop garments to meet customer requirements especially on product integrity and security.
"Thai manufacturers have adjusted, focusing on four main roles, which are value vendor, exporter, trader and logistics provider," he said.
Exporters should add services to satisfy customers' requirements and gain their trust, he said.
Buyers have changed their purchasing behaviour by sending Thai manufacturers only sketches of designs and the rest will be managed by the Thai side.
Previously, buyers had to send sketches, fittings and samples to make sure the products came out in the right form.
After providing those extra services, Thong Thai expects its sales to grow by 25 per cent to Bt1.8 billion this year.