MANUFACTURING Increasingly, Thai products are finding their way into high-profile stores around the world
Producers learn the lessons of quality

Dynaware has a wide range of trendy designs that fulfil the needs of a modern lifestyle

hailand’s manufacturing sector has come of age. With an increasing emphasis on quality, local firms are starting to enjoy the benefits of greater international recognition. More and more Thai products can be found on the UK high street, from textiles to children’s toys. They are also making inroads into the mighty US market and in Europe, too.
The aptly named Dynamic Group is one of the country’s leading producers of kitchenware and plastic accessories. Its flagship brands – Dynaware and 2 Smiley Dolphins – are to be found in chains like Next, Asda and Matalan.
The company's ambition and hard work since its formation in 1986 have enabled the business to expand into a major corporate player with a turnover of around $20 million.

Thaweesin Charuwongkhachon, group managing director of Dynamic group, is targeting consumers in the UK

These efforts were recognised in 2000 when the company received the prestigious Prime Minister’s Export Award.
Thaweesin Charuwongkhachon, group managing director, says that the UK market is very important for the firm, where it targets mainly mid-market and high-end customers.
“The Dynaware brand is well recognised in more than 80 countries worldwide,” he says. “The reason we use dolphins as our logo is because they represent an ethical heart, which is also our corporate philosophy.”
Mr Charuwongkhachon, a former politician, is a strong believer in his country's long-term economic development. During his time on the campaign trail, he witnessed at first-hand the poverty that is still evident in many of Thailand's remote villages. “When the company decided to build a factory, I wanted to make sure it would also create jobs for these people,” he says.
Dynamic now invests heavily in skills development among its village producers, from packaging techniques to quality control.

Despite the pressures of the last few years, Mr Charuwongkhachon believes that Thailand – and its manufacturing base – has weathered the storm. Backed by a solid agricultural sector, the country has a firm platform on which to build for the future. “With suitable policies, controlled by a competent government, Thailand will have strong grassroots that can support both existing and new SME businesses,” he says.
Another winner of the Prime Minister’s Export Award in 2000 is Narai Intertrade, a leading producer of household products and accessories under the Naraya brand.
The company exports 50 per cent of its entire production to more than 40 countries around the world. Most of the rest is snapped up by foreign visitors in the Thai domestic market.

Vassilios Lathouras, chief executive officer of Naraya, aims to open outlets in capitals around the world

Vassilios Lathouras, the firm’s chief executive officer, is another firm believer in quality. He says it is a lesson that many other local producers learned the hard way.
“In the past decade, most Thai manufacturers tried to reduce costs in order to compete with other international manufacturers, especially those in China,” he says. “This was a mistake.”
His company’s strategy is often to accept lower profit margins in order to offer higher quality products, but in bigger volumes.
The strategy has worked well. Today, Narai has an impressive network of retail outlets throughout the world. The latest addition is in the US gambling capital of Las Vegas.
The company is on the lookout for additional distributors in Europe, including the UK – where it has now firmly set its sights. “Our vision is to establish Naraya shops in the main capitals around the world, especially in the European and American markets,” he says.

Mr Lathouras believes this route will allow the company to work towards improving the perception of all Thai products. He is very keen to promote the ‘Made in Thailand’ mark.
“We are trying to establish the Naraya brand as representative of a 100 per cent Thai product,” he explains. “This is a way of improving the image of Thailand when foreigners purchase our products.”
Like the Dynamic Group, Narai is committed to putting resources back into the community. Much of its output is from small village producers working from home, an arrangement that contributes to social well-being and stability.
“Our shops here are just distribution centres,” says Mr Lathouras. “Our products are actually produced by workers living in various villages. We supply them with the raw materials and designs and they make the finished goods for us. We provide more than 2,000 machines for these people so they can work from home.”
He adds: “We have to work hard at training workers to understand our business, and they have to follow business disciplines by being on time and maintaining that quality standard.”