Thailand Durian Defense: Competition and Challenges in the Chinese Market
Thailand occupies the unshakable top spot in the global durian market, and its durians are loved by consumers for their unique taste and excellent quality, especially in the Chinese market.
With the strong rise of neighboring Vietnam in recent years, it has had a strong impact on Thailand in terms of durian exports. In this competition for "durian supremacy", how can Thailand hold on to its market share?
Thailand's active response
Faced with new changes in the durian market, Thailand did not sit idly by, but reacted quickly to defend its dominance. According to Thai domestic media Nation and other reports, in order to ensure the supply of the highest quality durian to the Chinese market, Thailand has decided to enact a bill to ban the export of low-quality goods.
The move aims to ban the sale of immature or poor-quality durians by imposing stricter commodity standards, i.e. requiring processing and packaging companies to use relevant certifications.
Thai Prime Minister Seta Ta Wishin has personally instructed the agricultural trade union department to promote this policy to prevent substandard durian from entering the market.
It can be seen that Thailand intends to use quality as a lever to regain the right to speak in the Chinese market.
The economic importance of durian exports
The export of durian is vital to the Thai economy. According to statistics, the export scale of durian reached 120 billion baht (about 23.6 billion yuan) last year alone, and two-thirds of the shipment was destined for the Chinese market.
Explosive growth of the Chinese market
Growing demand for durian in the Chinese market is expected to reach 1 million tonnes this year and expand to a staggering 15 million tonnes in the future, 15 times the current level. This is a potential business opportunity that Thailand naturally does not want to miss.
Vietnam's challenge
Compared with Thailand's boutique strategy, the main selling point is the competitive price advantage. Vietnam's proximity to China, convenient geographical location and low production costs make Vietnamese durian about 20% cheaper than Thailand in terms of price.
In January ~ February, Vietnam's durian exports to China reached 32,750 tons, surpassing Thailand and becoming the largest supplier. This shift is reflected in market share, with Vietnam rising from 32% last year to 57% this year, while Thailand has fallen below 50%.
Vietnam's geographical advantages and the possibility of year-round planting, combined with the advantage of durian export prices, have made Thailand feel unprecedented pressure in this race. To further enhance its competitiveness in the Chinese market, Vietnam has also launched frozen durian exports, which is expected to increase the export value by 30%.
Thailand's strong response
In response to this competitive situation, Thailand must not only enact laws and regulations to ensure the standards of its export products, but also continue to explore its unique advantages, such as increasing the added value of products, strengthening brand building, and optimizing logistics, to reflect the image of Thai durian as a superior quality.
Thailand has set an ambitious target of expanding annual durian exports to 1 trillion baht. To achieve this, Thailand must maintain its traditional market while expanding into new markets, improving production processes and raising product standards in order to stay ahead of the international market.
epilogue
The battle for durian in Asia is becoming more and more intense, and the game between Thailand and Vietnam in terms of strategy and market layout is worth paying attention to. In the end, who can win the favor of consumers in terms of the balance between quality and price will determine the outcome of this competition. Thailand still has a chance to defend its title as a major durian exporter if it can effectively manage costs and strengthen its brand influence while maintaining quality.