Lampang's Ceramic Industry Struggles Over Low-Priced Chinese Ceramic Goods

[snoop1130]

 

The ceramic industry in Lampang faces a major downturn due to the saturation of cheaper Chinese ceramics in the market, forcing several local factories to close. The situation has progressively worsened, with various firms struggling to remain competitive.

 

Preecha Srimala, Head of Lampang Pottery Association, disclosed that local ceramic businesses are facing unparalleled difficulties on August 13. Despite surviving the Covid-19 crisis, high labor, transportation, and material costs have compounded their troubles. The introduction of extremely cheap Chinese ceramics has thrown them further off balance.

 

These products, available online for as little as 5 baht per piece, are subjecting the local market to severe competition, resulting in many factory shutdowns, according to Preecha.

 

"Prior the pandemic, about 328 ceramic factories existed. However, by the end of last year's survey, there were only 89 still operational. Many are either closed permanently or temporarily, waiting for economic improvement. We are now relying on government intervention to bolster the economy," Srimala said.

 

He appealed to the government for immediate measures to safeguard the local pottery industry, which is part of Lampang's historical heritage and highly dependent on superior quality kaolin clay found in Ban Pang Ka, Jaehom District. Srimala warned that the distinctive pottery industry would be doomed without such action.

 

Srimala added, "We are inundated by imported goods, particularly Chinese products, that flood our Thai market. Our rooster-branded bowls are a distinctive product of Lampang, made from local clay and adorned with unique rooster, banana tree, and peony designs. The production cost of these items is about 20 baht per piece. However, the influx of Chinese goods sold online at 5 baht each, inclusive of delivery, is adversely affecting not just the ceramics industry but other local craft industries. The government must act swiftly to avert a domino effect of economic downturn.”

 

The iconic rooster-branded bowls of Lampang, can trace their origins to the 1950s when Chinese immigrants found high-quality clay suitable for ceramics in the region. From then on, by the 1960s, Lampang morphed into a major hub for the production of these bowls.

 

The industry, however, faced initial challenges due to uneven product quality and resource scarcity, which limited sales to local markets. In 1973, the Lampang Pottery Club was formed to ensure price uniformity among producers. Later, the club introduced new technologies, improved product quality, cut costs, and reduced environmental damage, helping Lampang Ceramics extend its reach to global markets.

 

In 1989, the Lampang Pottery Association was launched aiming to work with the government to endorse the ceramic industry. Each year, in conjunction with the province, the association hosts the Lampang Ceramic Fair from December 1 to 10. This annual event attracts both national and international tourists, offering a significant boost to the Lampang economy with their unique ceramic pieces.

 

The present crisis puts this long-established industry in jeopardy, and local manufacturers are urgently calling for government intervention to protect their livelihoods and preserve Lampang's cultural treasure.

 

File photo for reference only

 

-- 2024-08-14

 

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[BoganInParasite]

The wife purchased several hundred pieces during direct visits to Indra Outlet at Lampang and a couple of times online for use in her homestay. Middle of the market quality and price but outstanding customer service. There was a six month gap between her first and second physical visits but at least two staff remembered her name and the crockery pattern she purchased the first time when she visited the second time. Doubt anything similar would happen at places selling knock-offs from China. 

[hotchilli]

13 hours ago, snoop1130 said:

We are now relying on government intervention to bolster the economy," Srimala said.

Stop competition...  I hope you have a plan B

[Classic Ray]

The answer could be to leverage the advantage of the good local materials and skills and concentrate on the top of the market rather than trying to compete at the bottom.

 

Emphasise in the marketing the beauty and high quality of the products and back them with great customer service.

 

The Government could help by ordering products fir their use from these factories and helping to achieve royal patronage as is done with food products.

[Henryford]

Hard to believe even Chinese crap can be produced and transported at a profit for 5 baht each. But that is their business model undercut every other business in the world with their crap and drive them out of business.

[harryviking]

It is time for Thailand to take the "assault" from China seriously! It is time to put up a wall to stop it! Also, it has been found that Chinese goods are full of poisonous/toxic materials!! They are NOT safe!!! I have a feeling that this latest government is selling Thailand to the highest bidder! 

[PETERTHEEATER]

I'm regretting buying that Ming vase at a Sotheby auction. I now feel I was ripped off. 🤔

[OneZero]

CCP learned a lot from Sun Tzu.  Chinese Undercut Competitors Economies in Several Ways & then Swoop in to Buy Bankruptcies & Fire Sales.  CCP is using stolen intellectual property & its huge lower paid blue-collar population to dump on the world products that are at times, but not always, inferior.  This gains them economic advantage leading to political & military advantage.    An endless list of examples where Thai economy is suffering, automotive, solar panels, etc see link below.

Chinese Companies Eye Struggling Thai Bus and Restaurant Sectors for Expansion, Thai Business Owners Concerned - The Pattaya News

Quote: "On August 10th, 2024, Thai business insiders reported that several local bus operators are facing severe financial difficulties, with rising costs and continued losses forcing many to consider selling their businesses.  In response, Chinese companies, both bus manufacturers and operators, began negotiations to acquire these struggling Thai firms as a means of expanding their market into Thailand.  A source revealed that the Chinese are particularly interested in introducing electric buses, noting that half of Thailand’s bus fleet has already vanished from service due to the ongoing business crisis.  Chinese investors are reportedly setting up their own restaurants, similar to the ‘zero-based tours,’ where tourists dine only at Chinese-owned establishments,”.

[OneZero]

Yet there is still talk of helping Chinese industry & CCP blackmail by purchasing unneeded CCP submarines.

[JeffersLos]

Maybe they could team up with the Chinese in Lampang.

 

 

Then they could do to them what the Thais did to Pepsi (EST - Exact Same Thing) and Carlsberg (Chang).