Thailand Essay

2099 WordsOct 3, 20149 Pages
Group project adjusted 1. Introduction Monki is a Sweden brand under H&M selling high street female fashion. It entered Hong Kong. The next potential country to expand is Thailand. 2. Economic environment: 2.1 Per capita income Thailand‘s GDP per capital is 4410 USD. The cost of hiring Thai employees is low comparing with other countries. 2.2 Inflation Thai Secretary of Commerce announced that the inflation rate is between 2.8-3.4%. It benefits the Currency Board to decrease base rate and restrain exchange rate of Thai baht from increasing. 2.3 Population Thailand has 22.592 million female population, which is 64% of the working population. Thai female have sufficient purchasing power. 2.4 Balance of trade Thailand gets negative balance of trade about 1557 million USD dollar in 2013. As Monki will set up a factory in Thailand and benefit local economy, Monki will be welcomed. 2.5 Unemployment The unemployed rate of Thailand is 0.6%, which includes 245,000 people, in February 2013. It decreased by 11,000 comparing with last year. 2.6 Growth Bank of Thailand forecasted the economic growth is 5.1% in this year and 5% in the next year. 3. Cultural environment 3.1 Communication The official language of Thailand is Thai. However, minority nationalities have their own dialects. Thai culture is of a high context. They communicate indirectly and unclearly and avoid confrontation at all costs and never say ‘No’. Staff must interpret literal meanings of words figuratively in serving the customers and consulting the contract. 3.2 Education Thailand’s average education level is low. Monki will employ local people for sales and factory which do not need high education level. Monki will use more images to place advertisement and communicate information with consumers. 3.3 Shopping practices Cash is the payment method in Thailand. MOLPoints, PAYSBUY,

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