Daxueconsulting+泰国+x+中国商业关系报告

ThailandxChina

businessrelations

April2023

TOACCESSMOREINFORMATIONONTHEBEAUTYMARKETINCHINA,PLEASECONTACTDX@DAXUECONSULTING.COM

CONTENTOUTLINE

1.Netizens’searches:Baiduvs.Google

2.WhereinThailandareChineseinvesting

3.Casestudy:DurianexportstoChina

4.Casestudy:AutomotiveindustryandGWM

5.BestsellingproductsfromThailandonTmall

6.GeneralperceptionofChina

7.AboutDaxueConsulting

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14

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2

BaidusearchdataexposesChineseperceptionsofThailand

TVseries,food,andtourismarethemaintopicsChinesenetizensinterestedin.

AssociatedwordsonBaiduIndex*SuggestedtopicsonBaiduSearch^

*Theassociatedwordsrelatedtothenameofthecountry

Source:Baidu&BaiduIndex,2022.

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^Thesuggestedtopicsaftertypingthenameofthecountryinthesearchbar

3

ChinesenetizenssearchedfortravelaccidentandpoliticalnewsinThailand

Chinesenetizens’searchfrequencyof“Thailand/泰国”onBaidu

TwocruiseshipscarryingChinese

touristscapsizedduringasevere

stormnearPhuketIsland.

PremierLiKeqiangpaidan

officialvisittoThailand.

Source:BaiduIndex

China'sconstructionofa$402millionsubmarineforThailandwasobstructedbyGermany'srefusaltoexporttheenginestoBeijingaspromised.

ThailandfoundtheCOVID-19virusamongtravellersfromChina.

Thainetizens’searchfrequencyof“China”onGoogle

Timeframe:Jun2017–Dec2022

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Source:GoogleTrendsNote:Google’simprovementindatacollectionsystem

4

WhereinThailandareChineseinvesting?(1/2)

Bangkok,Pattaya,andSathonareplacesthatgeneratehighrentalreturns.

SUKHUMVIT—Bangkok'slargestresidentialandcommercialarea:ItisanimportantCBDdevelopmentareawithBangkokMassTransitSystem(BTS)MRT,manyofficesandbuildings.ItisalsooneofthemostimportantresidentialareasforforeignersandThais.

Silom/SathonSukhumvitPratumnakHillCentralPattaya

SILOM/SATHON—Bangkok'soldestCBDfinancialandresidentialarea:Itisknownasthe"WallStreetofThailand".TheareaishometomanyofThailand'slargestcorporations,includingMassiveGroupandBangkokBank.Therearemanyhigh-risecondominiumsinthearea,makingitaveryconvenientplacetolive.Thereisalsoanincreasingtrendwhereelitepeoplemovetothisarea.

PatongBeach

CENTRALPATTAYA—Realestateprojectswithhighpotentialforappreciation:ItistheheartofPattaya.Ithasafullrangeofcommercialfacilitiessuchasrestaurants,bars,shoppingcentersandentertainmentvenues.Thus,itisconvenienttolivehere.CentralPattayaissuitableforalltypesofinvestorsandtenants.Therentalandoccupancyratesinthisareaarehigh.

Imagesource:Unsplash,AshwaniVerma,2021

TheCoralIslands,Pattaya

Source:Juwai

5

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WhereinThailandareChineseinvesting?(2/2)

Beachesthatofferscenicviewsattractedinternationalinvestors.

Imagesource:Freepik,User6832922

AviewfromPratumnakHill

Imagesource:Unsplash,NorbertBraun,2022

PRATUMNAKHILL—Convenientlocationwithaniceview:PratumnakHillhasahighelevationandfacesthesea.ManycondominiumunitsonPatnaHillhaveoceanviews.Inaddition,itisconvenientlylocatedclosetodowntownPattayaandwithin15minutesofthemajorcommercialcenters.

PATONGBEACH—Thebusiestandliveliestbeachwiththebestfacilities:70%oftheisland'shotels,resortsandrestaurantsarelocatedhere.ThebeachissurroundedbyrestaurantsrangingfromlocaltoMichelinrestaurants.Varioushotelchainsandlargeshoppingcentersarealsolocatedinthearea.Visitorscandoallkindsofleisureactivitieshere.Thisareaiscelebratedbylong-terminvestorsgloballywhoarelookingforanoccasionalvacationeveryyearandwhosemainobjectiveistherentalreturn.

AviewofthePatongBeach

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Source:Juwai

6

PlasticrawmaterialsandfruitsdominateThailand’sexportstoChina

ThereisahighdemandfortropicalfruitsfromThailandamongChineseconsumersandplasticrawmaterialsforindustrialusage.

Thailand‘stop10exportstoChinaandshareofexportstoChina

in2020(MillionUS$)

CategoryExportstoChinaShareofexportstoChina

2,985

2,909

37.4%

71.2%

Plasticrawmaterials

Fruits

Rubbergoods

Storagedevice

Chemicalproducts

Cassava

Auto&motoparts

Rubber

Woods

2,820

2,208

1,624

1,600

1,390

1,284

1,063

23.3%

11.8%

24.1%

59.8%

6.5%

36.4%

46.6%

Integratedcircuits703

9.8%

Source:ThailandAgriculturalDepartment;zcqtz

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•PlasticrawmaterialsareThailand'slargestexportcategorytoChina.Yet,exportsofindustrialrawmaterialstoChinahavebeenonadecliningtrendsince2020.

•FruitsareThailand'ssecondlargestexporttoChinaandhavebeengrowingrapidlyforthreeconsecutiveyearsfrom2018to2020.FruitexportsfromThailandtoChinaincreasedbynearly40%year-on-yearin2020.

•TheThailand-ChinaFreeTradeAgreementdeemedfruitsastariff-freeproducts,whichcansignificantlyreduceexportcostsandprovidepriceadvantagesinthemarket.

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DurianisthemostimportedfruitbyChinafromThailandin2021

China'slargepopulationcontributestothestrongdemandforfreshfruits.Thailandislocatedinthetropicsandcouldprovidesufficientquantitiesoffruitforexportsforthreeseasonsayear.Thus,ThailandcouldexportarichvarietyoftropicalfruitstoChina.

SourceofChina'sfruitimportsinthefirsthalfof2022

Thailand,38.2%

Others,13.0%

Peru,3.0%

NewZealand,3.4%

Philippines,4.1%

Vietnam,9.4%

Chile,29.0%

Source:ChinaChamberofCommerceofI/E/ofFoodstuffs(2022)

ChinafruitimportsfromThailandin2021

(intons)

Durian

807,226

467,971

Longan

333,729

Coconut

In2021,durianswitha

Mangosteen

227,762

totalvalueofUS$3.1billionwereexported

Mango

5,651

fromThailandtoChina,illustrating108%year-on-yeargrowth.

Source:ThailandMinistryofAgricultureandCooperatives

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8

Goldenpillowdurianisthebest-sellingvariantinChina

Itissweeterthanothervariantsandcouldbekeptforalongerperiodoftimeafterbeingfrozen.

•Monthongdurian,alsoknownasthegoldenpillowdurian,isthemainvarietyexportedtoChinafromThailandasMonthongissweetandcanbekeptforalongtimewithoutchangingitstextureafterfreezing.

•AsearchonTmallshowsthatthe“goldenpillow”durianfromThailandisthebest-sellingvariant.AstoreonTmallevenhasmorethan10,000productsaleseachmonth.

•OnTmall,goldenpillowdurianswithaweightofaround

1.5–2kgarepricedatapproximatelyCNY130(US$19).

THAIFRUITEXPORTSTOCHINAINTHEFIRSTHALFOF2022

ExportstoChina(Millionton)

ValueofExports(BillionTHB)

1.16

92

•Foundedin2014,Mr.FruityisaproducerandexporterofThailand’sfruitswithpremiumMonthongdurianastheirmainexportproduct.

•Mr.Fruityoffersfrozenduriansandvariousfreshfruitssuchasdurians,longans,coconuts,mangosteens,mangoes,andsoon.

•HongjiuFruitisaChinesemulti-brandfruitcompanyfocusingonthesupplychainoffruitsfrombothdomestic(China)andoverseas.

•OneoftheirbrandsisMengXiang(猛象)whichspecializesinimportingThailanddurians.

Sources:GlobalTimes,IDE-JETRO,andChinaInternationalImportExpo

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Sources:Mr.Fruity,HongjiuFruit,ThailandAgriculturalDepartment,MinistryofCommerceofChina

9

12,000

4,400

900

ThailandisthebiggestautomotiveproducerinASEAN

EVsfromChinesemanufacturersaretaking58%ofThailand’sEVmarketsharein2021.

•In2019,Thailandisthe11thlargestautomotiveproducerintheworldandthebiggestinASEAN.ItattractsinternationalautomotivemanufacturerstosetupplantsinThailand.

•GreatWallMotorfromChinaownsamanufacturingplantinRayongProvince,Thailand.Thisisthemanufacturer’ssecond-largestfull-productionmanufacturingfacilityoutsideChina.Inlessthanayear,themanufacturingplanthashired700peopleandistargetedtoreachatotalworkforceof1,000by2021.

•ChineseEVmanufacturersaretakingasubstantialportionoftheEVindustryinThailand.

58%

ofthemarketsharein2021

Expectedtotake

&80%

in2022

NumberofnewEVregistrationinThailand

45,990

48,581

32,24835,270

20,379

20182019202020212022*

Source:ElectricVehicleAssociationofThailand(2022)*Until30June2022

PublicfastchargersinThailand

36,500

QuickcharginginfrastructureisalsogrowinginThailand.

2022202520302035

Source:NikkeiAsia(2022)

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Source:ElectricVehicleAssociationofThailand(2022)

10

Casestudy:GreatWallMotor

HAVALH6HEV

฿1.149mil.–฿1.249mil.

1984

NamedaftertheGreatWallofChina,

GreatWallMotor(GWM),aprivate

Chineseautomobilemanufacturer,

wasfoundedinBaoding,Hebei.

2021

•GWMenteredThailandonFebruary9th.

•ThecompanyofficiallyopeneditsfirstsmartfactoryonJune9thinRayongprovince,Thailand.

2022

•Todate,GWMhas5brandsinChinawithonly2brandscurrentlyavailableinThailand:HAVAL&ORA.

•Atotalof3modelsareavailableforpurchaseinThailand:HAVALH6HEV,HAVALJOLIONHEV&ORAGoodCat.

Sources:GoMechanic,GreatWallMotor,AutomotiveWorld

GWM’sHAVALH6HEVgainedstrongmarketshareinThailand

Themodel

ACCOUNTSFOR

33.2%

inThailand’sC-classSUVmarket

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RANKING

1st

intheC-class

SUVsegment

Earned

SALESCHAMPIONSHIP

intheC-classSUVfortwo

consecutivemonths

Source:HAVALGlobal,AutoLifeThailand

11

ORAGoodCat

Rank:1st฿989,000–฿1,199,000

GWM’sORAGoodCatwasthebest-sellingBEV*inThailandin1H2022

ItslowerpriceattractsThaicarownerswhochosetopurchaseEVsforitsloweroperatingcost.

•FortheperiodofJanuary-June2022,ORAGoodCataccountsforaround43.8%oftheGWMtotalBEV*sales.

•GWM’spopularitycouldbeduetoitsrelativelylowpriceandattractiveappearance.ThefollowingisthepricecomparisonbetweenBEV*swithtopsalesfortheperiodofJanuary-June2022.

VolvoXC40

PorscheTaycan

Rank:4th฿7,100,000–฿11,700,000

Rank:2nd

฿2,590,000

*BEV:BatteryElectricVehicle

Sources:AutoLifeThailand,ElectricVehicleAssociationofThailand

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PeoplewhoownEV(s)operatingcostsasthebuyingEVs.

perceivethelowertopmotivationfor

FactorsinfluencingEVpurchaseamongThaiEVowners

Lowercosts

81%

Goodforenvironment

Advancedtechnology

73%

59%

Source:KrungsriResearch(2022)Remarks:Thesurveyhas818respondents

12

Timeframe:Jun2017–Dec2022

GreatWallMotorราคา(GreatWallMotorprice)

SearchtrendsofGreatWallMotor(GWM)onGoogleinThailand

GWMandGMsignedtheagreementforthepurchaseofGMThailandRayongManufacturingFacility.

GWM’ssmartfactoryinRayongcreatedmorethan3,000jobopportunities.

Related

queries

สมัครงานGreatWallMotor

(ApplyjobatGreatWallMotor)

Source:GoogleTrends

Note:Google’simprovementindatacollectionsystem

13

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BestsellingproductsfromThailandonTmall(Excludingtourismproducts)

VFOODSMIX

BISCUITSTICKS

Price:CNY19.90–39.90(US$2.93–5.87)

Monthlysales:3,000+

Reviews:10,000+

Popularitydueto:Crispy,smellsgreat,goodtaste,greatdeliveryservice,variousflavor

Source:Tmall,2022

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DELALITA

WHOLEWHEATCHIPS

Price:CNY83(US$12.22)

Monthlysales:600+

Reviews:100+

Popularitydueto:Veryhealthy,crunchy,low-cal,greattaste,containscoarsefiber,highprotein

KOH-KAE

FLAVORCOATEDGREENPEAS

Price:CNY17.90–75.80(US$2.64–11.20)

Monthlysales:2,000+

Reviews:2,000+

Popularitydueto:Crispy,goodpackaging,greattaste,deliciouswasabiflavor,crispy

14

WhatdoThaipeoplethinkaboutChina?

China’spoliticalandstrategicinfluencewasfeltstronglybyThailandduetogeopoliticalreasons.

THAILAND

•ComparedtootherASEANcountries,citizensfromThailandaremoreconcernedwithChina’sgrowingregionalpowerbecauseofgeopoliticalissues.

•YoungThaiconsumersoftenbuyfashionitemsandelectronicsfromChinaduetoitscompetitivepricing.

ThaiandASEANrespondentswhoare

worriedaboutChina’sgrowingregional

economicinfluence(2020-2021)

ThailandASEAN

79.3%

75.9%

71.9%72.3%

2020

2021

Thenumberofrespondents:(approx.)131

Source:ISEAS-YusofIshakInstitute

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Price,quality,andvarietyleadyoungThaiconsumerstobuyChineseproducts

•Clothing,shoes,andelectronicsaretheChineseproductsmostoftenpurchasedbyThailand’suniversitystudents.

•TheresearchalsofoundthatmanywerecompelledtobuyChinesegoodsasthereisalimitedselectionofdomesticproductsavailableforpurchasewithinThailand.

•ForThaipeople,bothpriceandperceivedqualityareimportantwhenitcomestobuyingChinesegoods.

Source:ASEANJournalofManagement&Innovation

15

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