A surprise coup in Thailand followed by the chaotic opening of the new Bangkok international airport, has reduced the number of buyers traveling to Thailand to buy holiday inventory, but increased wholesale sales via the Internet.
Chiang Mai, Thailand (PRWEB) October 10, 2006 — In a one-two punch for Thai handicraft businesses in September, a surprise coup and the opening of Bangkok’s new international airport have reduced the number of international buyers visiting Thailand.
On September 19, 2006, a group of military officers successfully staged a coup against Prime Minister Thaksin Shinawatra while he was in New York City at a meeting of the United Nations. Although the coup was bloodless and supported by a vast majority of Thai citizens, international press coverage cautioned international visitors to reschedule plans, printing photos of tanks parked on Bangkok streets.
Nine days later, and more than a year after its originally scheduled date, Suvanabhumi Airport debuted amid cautions from airline groups that many airport services and systems were not ready. Several airlines canceled flights on the opening day as a precaution. Many flights experienced lost baggage or baggage delays of up to 5 hours. A week after the opening, a multiple-day outage of the baggage handling system resulted in more than 6,000 bags failing to make their flights.
In response to the proximity of the two events, some tour operators estimate that arrivals could fall 30 percent over the next three months. Government officials express hope that the effect will be short-lived.
A quick walk through Chiang Mai’s night market confirms that, at a time when stalls should be packed with buyers, the alleys are quiet.
Another indicator of the combined effect of the coup and the airport has been a dramatic increase in the number of orders placed by overseas buyers for Thai handicrafts via the Internet.
The founder of one such Internet sales portal, Somsak Bauood, explains, “The last part of the year is always busy for Internet sales, since many buyers need to stock up for the holiday season. But this year, we are hearing from a lot of new customers who tell us they normally come to Thailand to buy, but decided to stay home to avoid inconvenience.”
As a result, he continues, “Our site ExporThai.com is seeing a big increase over the same time last year.”
With reports of cargo being delayed at the new airport, Bauood was at first concerned about shipping to his customers on time. Asked if he was having any trouble, he replied, “ExporThai.com ships almost everything via air express companies like Fedex and TNT Express. Both companies have managed their exports well and we haven’t seen any delays at all.”
Southeast Asia is no stranger to events which reduce tourist arrivals, affecting the sales of locally produced goods. 2004 saw the debut of bird flu in Thailand, followed by the devastating tsunami that struck the west coast of Thailand on the day after Christmas. The year before, SARS greatly reduced tourism in almost all Southeast Asian tourist destinations, including Thailand.
Bauood notes that because ExporThai.com was the pioneer in wholesale Internet sales of Thai handicrafts, it is ready to handle the extra business. “Many others have started up since we have, but very few survive because of the high level of customer service required in times like these,” Bauood points out. “It is being able to serve customers via ecommerce when they need it that makes the difference.”
Lanna Doi, a designer who specializes in high-quality Thai handicrafts, says that Internet sales of her designs have really taken off as well. “It takes too much of my time from designing if I have to supply to many stores or outlets in Thailand, and usually, they want to pay me a low price. But by selling via the Internet, I can get a fair price and reach customers all over the world. Now I’m happy I tried it.”
Bauood agrees. “When we started offering Lanna’s designs for exclusive sale, we couldn’t promise her a big volume, but she took a chance anyway. When Thailand experienced some setbacks in 2003 and 2004, Internet sales went crazy. Customers tried ecommerce and liked it. They can save their traveling for holiday fun!”
Bauood is thankful that his company can provide help to local artists and craftspeople, as well as to overseas buyers, when domestic sales are slow. “The craft people can’t sell anything if there are no tourists. For the good of Thailand, I wish they come back fast, because anyway, once they try Internet buying, they’ll keep coming back to us, too!”
For additional information, contact:
Bruce Janis
Internet ExporThai Company Limited
+661-530-6988
http://exporthai.com
About Internet ExporThai Company Limited
Internet ExporThai Company Limited was founded in 1999 to bring Thai arts and crafts to the international wholesale market via the Internet. Since its founding, a more than 150% annual growth rate has made ExporThai.com the leader in wholesale direct sales of Thai handicrafts, including Thai silk, mulberry paper, handbags, wood carvings, kalaga wall hangings and more.