Market entry strategy for exports to Thailand

If Thailand is a relatively unknown market for you, you need a clear market entry strategy. This may be different from the strategies you have used so far, as the market structure and the competition is different.

Key in your market entry strategy is some market research. Of course there are reports on market size and market growth, but often these are general. Specific knowledge on how your product is perceived and what your competitions is, is harder to get but more valuable.

Oppportunities for international business in Thailand

Thailand has a population of about 70 million people. It’s a popular tourist destination, famous for its beaches, temples, and cuisine.

The Thai economy, with a GDP per capita of approximately $6,000 USD in 2023, is diverse, encompassing agriculture, manufacturing, and tourism. Agriculture is significant, with rice, rubber, and seafood being major exports. Manufacturing, especially in automotive and electronics, is also a key economic driver. Tourism is a major contributor to the economy, attracting millions of visitors each year.

Thailand’s main imports include electronic components, machinery, and crude oil, vital for its manufacturing sector and energy needs.

Major cities include Bangkok, the vibrant capital; Chiang Mai, known for its historical significance and temples; and Pattaya, a famous beach resort town

Five ways into a market

Your entry model decides your cost, your speed and how much control you keep: sell directly from home, work with an agent, appoint a distributor or importer, sell online, or open a local office.

Control and investment move together. Direct and online selling are cheap to start and easy to stop. A local office gives full control, but needs staff, registration and often a local company.

Most companies start light, prove that there is demand, and only then invest.

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Entering the market in Thailand in three steps

Step 1

Validate the demand

Check market size, competitors and price levels, then speak with five to ten potential buyers. Their reaction tells you more than a general market report.

Step 2

Choose channel and price

Pick the entry model that fits your margin and your capacity, and calculate your landed cost: transport, duties, VAT and the margin the channel will take.

Step 3

Pilot, then scale

Start in one region or with one partner, agree what success looks like after six to twelve months, and expand the country plan only on those results.