Exports of gifts, premiums and decorative items are expected to resume growth this year, rising 2% to 24.5 billion baht, after two years of contraction, according to the Thai Gifts Premiums & Decorative Association.
The return to growth this year will be driven by rising gift and decorative product exports to the Asean market and the shift of product orders from China, said Jirabool Vittayasing, the association's president.
In the first nine months of this year, demand for gifts, premiums and decorative items in Vietnam, the Philippines and Indonesia surged by 33%, 22% and 20%, respectively. Export value to Japan also increased.
"Export of gifts, premiums and decorative items in Asean grew higher than we earlier forecast. Demand in Asean had never grown at a double-digit rate before and now Asean has become the third largest market for Thai gifts and decorative products," said Mr Jirabool.
The US is the largest importer of Thai gift products, followed by Japan and Asean.
The association is very optimistic it will reach its full-year export growth target this year. But the export value of gifts, premiums and decorative items recorded a 2% contraction in the first nine months due to the global economic downturn, particularly in the US and China, as well as currency exchange fluctuations.
Gift and premium product exports to the US contributed 25% of total export value, followed by Japan (16%), Asean (14%), Europe (12%) and other markets.
Mr Jirabool said the association will adjust its export strategy for Thai gift products to continue the growth momentum in 2017.
It will promote gift and premium product sales at several tourist destinations such as theme parks, zoos and museums to cash in on the strong growth of the tourism industry in Thailand. This strategy will represent a change from the last several years, when manufacturers mainly focused on selling their products to modern trade retailers and chain stores.
Mr Jirabool noted that many buyers of Disney's gifts and premiums have shifted some orders worth 10 billion baht from China to Thailand as Chinese producers are facing higher labour costs and product piracy problems.
This has benefited the overall gift and premium product production in Thailand. Therefore, Thai gift producers are in the process of adjusting their production facilities to meet international standards in order to have the capability to produce Disney's gifts and premiums next year.
So far, six Thai manufacturers are upgrading their production processes and facilities with modern technology. Afterwards, more producers will follow suit to meet international production standards next year.
The association will also promote Thailand as the Asean hub for gift design and business matching among designers, traders and producers.
N.C.C. Exhibition Organiser Co has joined hands with the Thai Furniture Industries Association, the Thai Gifts Premiums & Decorative Association and the Office of Small and Medium Enterprises to arrange Thailand Best Buy 2016 and TFA Premium Furniture Outlet from Dec 16-25 at Queen Sirikit National Convention Center.
Organisers expect 220,000 visitors during the 10-day fair with sales of 250 million baht.
For the domestic market, the sales of gifts, premiums, and decorative items is expected to see negative growth this year due to the economic slowdown.