Southeast Asian countries, such as Vietnam and Thailand, are some of the fastest growing economies in the world. Developing countries typically have a large working population with hectic lifestyles. Therefore, adoption of dietary supplements for preventing the onset of chronic disorders is stated to emerge as one of the leading Southeast Asia Dietary Supplements Market
The Thai Ministry of Commerce in 2019, reported in the nutraceutical industry, combined sales of 110 billion baht ($ 3.5 billion) through all channels, including direct sales, e-commerce and through physical stores.
Many foreign nutraceutical Companies could successfully export their products to Thailand, provided they choose the correct entry strategy
In today’s fast-changing world, prompt market entry can provide companies with a strong competitive edge. More often than not though, small and medium-sized Companies don’t perform a foreign market research, which significantly limits their expansion opportunities and makes growth more risky.
If you are planning to export your Nutraceutical products to Thailand, our suggestion is to carry out a specific FEASIBILITY STUDY
Feasibility studies aim to objectively and rationally uncover the strengths and weaknesses of an export project, opportunities and threats present in the environment, the resources required to carry through, and ultimately the prospects for success.
Feasibility Studies are vitally important for companies who are looking to bring their product to Thai market. It help internationally focused companies develop their correct route to market for their products.
The most important questions to answer:
- Is the market healthy and growing or has it stagnated and in a decline phase?
- Is the market large enough to accept a new player, or is it too small to accommodate another competitor?
- Who are the dominant players in the market?
- What are the strengths and weaknesses of the competition and can the new business venture capitalize on these?
- How large is the market relative to customer demand?
- Are my products certifiable in Thai FDA?
The Feasibility Study helps to answer the final question: “Should we proceed with the Thailand export project ?”
Market analysis is usually the first study that is conducted in most feasibility studies. If one cannot demonstrate that adequate demand for a product exists, then the project is not feasible.
It provides market research answers to questions such as: “What is the current or projected demand for the proposed products ?”; “What are the target markets for this product ?”; “What competition exists in this market?”; “What is population and household characteristics, including trends and projections in the targeted area”, ” What are the income characteristics of the project area?” etc.
In short, market analysis helps to identify opportunities in a market.
Its a research study to find out if the export project is possible with a high degree of probability of success. It looks to establish the fundamentals necessary to support the project. Many over-ambitious projects fail this study and that prevents anyone from wasting time and resources on hopeless projects that look great in ideas.
The report provides an analysis of the factors that may positively or negatively impact a proposed project. Feasibility studies examine your market including potential facility users, competitors offering similar services, potential facility costs and revenues, and options for project development. In short, a feasibility study will help you figure out how sustainable your model is and help you define your goals.
By looking at the landscape that surrounds your project, including where your potential customers would come from and who you are competing with to gain them, you’ll be able to gauge the likelihood of achieving your definition of success. Feasibility studies can also help you determine the costs required to successfully launch a project.
Like ideas, goals are only useful when they are put to work. As you define your goals, with the help of your feasibility study, they will give you a better understanding of what steps you need to take.
The greatest benefit of a feasibility study is that they give you specific information about what a project requires for it to be sustainable. By understanding development costs, the competitive landscape, where potential customers will come from, and revenue potential, you’ll have a feel for what resources must be procured and what actions your Company must take to achieve success.
First, one should consider future possibilities. A five- to ten-year industry projection report may be helpful to analyse profitability of a new idea. A stable market is more likely to receive government support in the future, which in turn accelerate the development. Next, consider the competitors, especially the dominant players.
- Competitor analysis can identify the strength and weakness of the counterparts.
- Can help to finalise ideas and solutions that win customers and outstand rivals.
- Consider the upstream and downstream market for choosing proper vendors, suppliers, and attracting customers in later stages.
THE STRUCTURE OF AN EFFECTIVE FEASIBILITY STUDY FOR EXPORT TO THAILAND
1. Conduct a preliminary analysis
2. Prepare a projected income statement
3. Conduct a market survey
4. Plan business organisation and operations
5. Review and analyse all data
6. Make a “Go/No Go” Decision
Now that all the data has been reviewed and analysed, you should know whether you have a feasible product on your hands. The leads to either a “go” or “no go” decision. If you find out the export project has the potential to generate the minimum revenue, allowing you to meet your return on investment, as well as grow as your company, then a “go” decision is appropriate. If not, that is not a feasible project, which should lead to a “no go” decision.
A feasibility study is something that should not be overlooked nor taken lightly. It is one of the most important concepts in export project development that can make or break a project. If you want to conduct a feasibility study the right way, follow the above-mentioned steps.
1. Will business work or not?
2. Is it profitable or not?
3. What will it cost to start?
4. Is it worth doing?
For more information contact us info@khabangkok.com
