Thai companies eye Italy's luxury market

       Italy's appetite for luxury has continued to grow despite the downturn and offers an opportunity for Thai producers, says Ekkamon Hutasingh, president of the Thai-Italian Chamber of Commerce.
       The continuing health of its tourism sector and of global demand for its upscale products has partially cushioned Italy from the slowdown, he said.
       Italy's gross domestic product fell 0.5%in the second quarter from the end of March, compared with a 2.7% decline in the first three months of the year.
       Mr Ekkamon said Thai products can compete in Italy in sectors such as high-end furniture, which has seen a recent surge in orders.
       High-priced teak furniture from Thailand has never entered the Italian market,but the last three months have seen several orders, each of between 2 million and 3 million, he said.The figure is doubling, he added."Those [Thai manufacturers] who sold cheap products were in a price competition. They ended up not being able to survive. But there were 2-3 factories that were manufacturing expensive products who adapted themselves and received an increase in orders," he said.
       Very few Thai companies have succeeded in Italy's high-end market and most are original equipment manufacturers but Thais should introduce new designs, said Mr Ekkamon.
       Thai products could penetrate Italy's high-end market but they are yet to become widely known, he said.
       Guido Traverso Guicciardi, the operator of a marketing consulting firm, suggested that Thailand should create a centre in Milan to promote Thai brands and act as a business negotiating centre.
       "The leading concept should be heritage and Thai characteristics. The issue with Asia is that they try to copy European brands," said Mr Guicciardi.
       Italian designer Massimo Zucchi who has designed products for brands such as Gucci, Herme's, Swatch and Rolex - agrees with Mr Ekkamon that Thailand could penetrate the Italian market.
       "The strength of Thai products is quality.You have high quality and should hold on to this and look for other factors for support as well," he said."Thai products should seek their own uniqueness.... Introducing products into the world market is done through branding, not just developing products."
       Wimonkan Kosumas, director of the International Co-operation Office of Small and Medium Enterprises Promotion, said promoting Thai products in Italy would also raise their brand image elsewhere in Europe.