The cosmetics cottage industry in Thailand

The Thai people have always been above average per capita users of cosmetics and personal care products in the Asian region.1 Cosmetic, personal care and toiletry market segments are very competitive, with a lot of local innovation, not always seen in other countries of the region.

Over the last few years, consumers in Thailand has also shown a tremendous interest in ‘green products’, as can be seen in the various handicraft markets around Bangkok. Thailand is perhaps a unique country due to the way Buddhism is practiced, which has promoted a deep awareness of the environment on the part of consumers. Thai farming has also undergone quick evolution from chemical dependent practices to chemical-free practices over the last decade. Organic and sustainable farming practices have been introduced to the point where all rice padi production in the country will soon be organic. Unlike organic farming in Western countries, where it is considered a premium activity in agriculture, organic farming is developing its strong base in Thailand as a method to lower input costs in agriculture. Another change to Thailand which is beginning to have great impact on daily consumer habits is the development of the ‘One Tambon One Product’ (tambon meaning village sub-district) or OTOP programme for short. Initiated nationwide by the government in 2001, the original objective of the programme was to enhance social protection through; the development of local handicrafts, development of collaboration between public agencies, local government and the people in developing microentrepreneurship, to promote human selfsufficiency at the village level, to develop best practices and quality products at village level, to cluster this development in regions, to link agriculture and tourism, and to link micro-enterprises to the local, regional, national and international markets.2 The Thailand OTOP programme is based on the Japanese One Village One Product movement (OVOP). The OVOP movement started 1979 in Oita, Japan, as a means to promote regional revitalisation and autonomy. Each community identified one or more products or industry that was locally specific and distinct. Resources were then concentrated on the production of these products, establishing them as local brands, and marketing them to the entire country or beyond. The programme is based on the following principles:

•  Local yet global –the development of globally accepted products that reflect pride in the local culture.
•  Self-reliance and creativity.
•  Human resource development – rewarding creativity and industry.

Villagers found that their local products turned into national brands, which encouraged interest in their local traditions and products – leading at times to an increase in tourism. Publicised through mass media, research and guidance facilities were established to provide technical support to varying industries; a sales and distribution mechanism for OVOP products was organised, and education and training was offered to industrial and regional leaders. A reward system was also set up for those who successfully implemented the programme.3 The OTOP programme in Thailand has developed into an umbrella platform, along the same lines as the Japanese model, where multiple programmes have been set up to enhance product development, skill, technology and marketing. Marketing is undertaken through multiple marketing channels, including;

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