Thailand manufacturers hope to establish brand in global market, avoid China connotation

Thailand manufacturers hope to establish brand in global market, avoid China connotation

Thai-based facilities hope to establish expertise in technologies, avoid stereotypes associated with location

BY JEFFREY BAUSCH

Today was the last day of our electronics factory tour across Thailand and we were fortunate enough to conclude the junket with two fairly well-known companies: Celestica and Team Precision.

Representatives from both companies spoke at length about the business decisions made in getting their companies to the point they are at today, and they also spoke about their hopes for expansion in the near future.

These conversations got a bit deeper and the group eventually struck a chord with the reps that, upon reviewing my notes, I see was mentioned at a few other companies I visited during the week: that is, Thai electronics manufacturers want to avoid being associated with the negative connotation associated with China electronics manufacturers.

Companies in Thailand want to establish their country’s brand in the global market without being associated with Chinese manufacturing facilities. (Image via: rapidpro.com.au)

Reading that line on paper, it seems like a pretty silly thing to set as a goal, but in speaking with these reps, it’s clear that they are aware that a certain part of the market associates most electronics equipment out of Asia to be from China and therefore cheap and unreliable.

This is unfair for two reasons: (1) Not every piece of technology out of China is cheap and unreliable. Sure there are some sketchy manufacturing facilities, but there are also several companies that churn out quality products. (2) It’s not fair to associate all of Asia with one company’s exports. I’ve come to learn that many of the different countries here have different technological specialties, if you will, whether it’s LCDs in Taiwan or HDDs in Thailand.

Some successful Thai companies like Celestica and Team Precision have the goal of expanding their companies in the greater global market beyond where they’re already at. And in doing so, they want to be able to establish Thai-based electronics companies as experts in technology solutions, as opposed to a place in the world where companies can come in and get a product manufactured for cheap.

But how does one go about changing an already established notion? It’s simple: you alter the manufacturing process. Companies like Celestica and Team Precision are proud to point out that they’re high mix, low volume electronics manufacturers; that is, they are experts in producing a wide range of electronics for each of their niche markets, and that they don’t necessarily specialize in producing a high volume of equipment.

Now, it’s one thing to declare a company a specialty manufacturer, and something entirely different to actually prove it in practice. The way in which companies like Celestica and Team Precision are selling their services to potential clients is by offering full-service solutions under the same roof. Technologies are designed according to client specs, prototypes are developed, tested, adjusted, certified, and manufactured, in short, all in the same facility and by professional certified, trained, and educated to get the job done right.

Again, this is as opposed to the pre-conceived notion that Chinese manufacturers simply hire staff to produce technology and equipment with no other commitments to their clients.

The Electronic Products website tends to cater toward the electrical engineers and high-end hobbyists out there, so we’re curious to hear what you think: does Thailand, and the other surrounding Asian countries like the Philippines, Singapore, and Taiwan, have enough clout to stand on their own in the eyes of you — the users and purchasers of their technology? Or is China the 800-lb gorilla in the room that is just too big to allow surrounding countries to establish their own presences in the electronics market?

Let me know what you think at
— the best responses will be featured in a follow-up article on this subject. ■