SME Companies in Thailand Post COVID
How easy is it for SME Companies in Thailand Post COVID to get back on their feet? What can be done to ensure that they survive and prosper in the Thai market.
The pandemic has undoubtedly made a huge impact on businesses in Thailand. However, analysts believe for SME companies, they shall be able to make a quick turnaround as they can downsize easily and have better efficiency than larger companies.
Operating SME Companies in Thailand post COVID is quite simple to manage in practice; 1. Find a factory to rent in an industrial park that has a large distribution centre. 2. Ensure it is equipped with full facilities, located close to raw materials for production. 3. Make sure it is close to the capital city. Using these three simple steps a small and medium-sized business can recover and get back on their feet.
The Effects of COVID on SMEs in Thailand
COVID was a unique time, for around two years people were unable to go shopping physically and various activities were prohibited. However the online market grew constantly. This trend has caused more and more SMEs to create more of an online presence.
As the global economy and new technologies are constantly evolving, now more so than before, a big part of keeping a company afloat is adaptation. A vast amount of companies have turned to online branding as well as establishing online shops through various channels. Facebook, Instagram, YouTube have all become a means to find new customers as well as keeping themselves relevant.
Domestic and coastal freight services are now at the fore to satisfy the lifestyles of the global population post COVID.
COVID was a big wake up call to big businesses that may have been around for a while. Adaptation is key. To be able to quickly change pace to keep up with the burgeoning companies is now much more relevant than say 20 years ago before online shopping was so prevalent. COVID has only speeded up the process and need for companies to adapt. The larger companies may not be able to recover as quickly due to how complex their business structure may be.
3 Strategies To Adapt
- E-commerce/Online Media presence
Investing in online platforms will enable the business to stay abreast of changes in behaviours. Understanding your market and how to sell is vital. Relying on shopping malls may very well become an outdated and unused method in the near future.
- Invest in Logistics
Reducing labour costs and understanding how to better utilise money in the business structure will help the company to bring profit back easily. Creating a more cost efficient, streamlined supply chain will help reduce money spent daily.
- Location, Location, Location
Industrial estates have two great benefits: 1. They louse factories which produce finished goods and raw materials used in the production process, 2. Supported by the Board of Investment (BOI) and the Industrial Estate Authority of Thailand.
This area receives the highest tax privileges as the Eastern Special Development Zone (ECC) and this will allow small businesses to be able to operate and compete with other businesses.
Set yourself Up For Success
Something that should never be overlooked is the importance of security. If a company of any size hasn’t the right protections it can fail before the business has even had a chance to get going. No matter what type of industry your SME is in, insurance plays an important role.
Whether your business deals with food, manufacturing, construction or entertainment there are so many ways in which you can be sued. Ensure you have the correct insurance to cover your back in case of any problem your SME could face.