Lack of consumer insight into foreign markets is impeding Thai brands from becoming international ones even when they have potential, says Interbrand, a New York-based branding consultancy.
Julian Barrans, managing director of Interbrand Singapore, said food and hospitality were the first two things global consumers associated with Thailand.
However, most of them cannot name Thai brands even though leading ones such as Thai Airways, Singha and Chang beers and Central Group have been known internationally for a while.
When going abroad, Asian brands focus mainly on sales, marketing and shelf displays and are less concerned about consumer insight when developing products to meet demand in international markets.
Many Thai brands position themselves wrongly in such markets, some even trying to attract niche markets that do not suit local consumer lifestyles.
Finally, they cannot build brand awareness among buyers and gain a bigger market share.
Mr Barrans said Thai companies also lacked innovation and technology, important factors in becoming leading global brands.
Moreover, the recent political instability has proved an obstacle for Thai brands to expand their reach abroad.
"You should know your strengths. Thailand has high credibility in dining and catering, followed by food and beverage, and hospitality and health-related services. On the other hand, you're not famed for education, financial services, pharmaceuticals and IT products," Mr Barrans said.
Apple is the world’s best global brand, with a value of US$118 billion, up by 21% from last year, followed by Google and Coca-Cola, according to this year’s Best Global Brands ranking conducted by Interbrand.
Facebook is the top riser, to No.29 from No.52 last year.
Eleven Asian brands are listed in the top 100 including South Korea’s Samsung in seventh place, Honda from Japan at 20th and Huawei, a new entry from China, at 94th.
No Thai brands were listed in the top 100 global brands.
Interbrand found 10 characteristics of brand ability that delivered future earnings.
Among these are internal factors that clarify what the brand stands for and its value, set the brand's commitment, secure the brand across a number of dimensions and finally respond to market changes and opportunities.
For external factors, brands should deliver against the expectations of consumers and provide products that meet needs.