Bangkok--12 Jun--JETRO Gives emphasis on trade of services with rich Thai value — the essence of Thai-ness is promising in Japanese market and the world Three initial areas of service trade include franchising of Thai spa and Thai restaurants as well as supporting Thai media content industry The Japan External Trade Organization or JETRO Bangkok, together with Thailand’s Department of Export Promotion to promote “Thai service trade” — franchising business from Thailand to Japan, especially spa and restaurant businesses, as well as to enhance Thai media content industry. This service trade promotion will help to deepen the economic tie between two countries, which is to be strengthened by the Japan-Thailand Economic Partnership Agreement. Mr. Yoichi Kato, JETRO Bangkok President said “Thailand holds a more advantageous position in exporting certain types of service than other Asian countries. Since Thai service encompasses rich value, and Thailand rightfully possesses “Thai Value” which is an ideal of Thai wisdom, culture, and heritage reflected through the Thai way of living. Value as a selling point is more important than cost competitiveness in present severe global competition. JETRO has observed the potential of Thai service in Japanese markets, therefore we have made the decision to promote Thai service trade. Adding to a benefit from service trade itself, it makes great contribution to Thai overseas businesses, such as enhancing the export of Thai goods, uplifting brand image and confidence of Thai business. A service trade is a system and platform to boost Thai business in the world market. “ Mr. Haruhiko Ozasa, JETRO Bangkok’s Trade Cooperation Department Director, said “JETRO is going to promote three most promising areas of services, which are franchising of Thai spas, franchising of Thai restaurants, and media content, including movies, animations, music, and documentaries. Currently there are several successful Thai restaurants in Japan, namely Coca, MK, and Mango Tree. For Spa, there are local Japanese operators of spa of which Thai massage service is included and Thai business in Japan has just started, namely HAAN” Mr. Ozasa said “Thai franchisers will receive royalty and revenues from business model consultations such as designing a business concept, making a menu, decorating an outlet and etc. Franchise of Thai businesses to Japan will also boost exports of Thai goods to Japan. For instance, good Thai restaurants in Tokyo use original Thai ingredients by 50% of the total ingredients, and top-tier Thai restaurants there generally uses 80%, according to an interview with a famous Thai restaurant group in Tokyo. “ Mr. Ozasa continued “As for the initiative to promote Thai media content industry, JETRO has invited a Japanese expert from Japan to provide counsel on a business with Japan and to hold workshops for Thai businesses. Media content, including movies, animations, music, and documentaries, is an effective way to publicize Thai value by integrating Thai wisdoms into the content, which will enhance consumer preference for Thai services and works as the platform for exporting Thai products.” The Japanese have a taste for Thai action movies and Thai comedies. In 2004, in Japanese market, “Ong Bak” earned 800,000,000 Yen whereas “Iron Ladies II” earned 100,000,000 Yen, compared to “Infernal affairs 2” from Hong Kong with the record of 200,000,000 yen and “Untold Scandal” from Korea with the record of 900,000,000 yen. Mr. Kazuo Kuroi, JETRO Expert and successful film producer, said “Movies offer boundaryless communications with the audience, while a product may have a limitation for developing such connection; Because one product has a price, it is difficult for the consumers’ satisfaction to go beyond the price. However, a movie does not have such limitation because it involves transaction of the heart and a value created by our heart is inexhaustible.” Mr. Kuroi said “The bilateral trade between Japan and Thailand has been very active. I do believe that the service trade promotion for movies can further contribute to the relationship between Japan and Thailand. The Japanese movie industry is now looking for inspirations from all over the world. For instance, I co-produced the movie “Virgin Snow” with Korea, following the idea proposed by a Korean. For Thailand, I am certain that there are possibilities to work with Thai movie industry because Thailand has a great history, such as Ayudhaya, and is a popular travel destination for Japanese people. It is very much welcome that Thai movie professionals will contact with Japanese movie makers more and will propose ideas to work together. And I wish for a more active collaboration among us.” Mr. Kuroi, Ex-President and present Consultant, Kadokawa Film Inc. which is a leading film maker in Japan, was invited from Japan to give briefings on “Opportunities for Penetrating the Japanese Content Market” for Thai media content industry. During his visit to Thailand, he had a meeting with Thai media content industry such as representatives of Thai Entertainment Association, Thai Animation and Graphics Association, the Federation of Thai National Film Association of Thailand, Thai Game Software Association, Kantana Group, Five Start Production, and GMM Tai Hub. A branding team from Japanese Dentsu (Thailand), the biggest advertising agent all over the world, has also been invited to conduct “Brand Development Workshop” so that Thai firms can self-investigate their own brand perception, strengths and weaknesses for further brand value determination. The workshop allows 30 participants from food & beverage industry, service businesses, as well as franchises. In the future, it is probable that more areas of service trade, other than spas, restaurants, and media content, would be traded to Japan. This would help strengthen the economic cooperation between Japan to Thailand to new heights. For more information, please contact: Chutima Duangpanich, PR Dept., JETRO Bangkok, Tel. 02 253 6441 ext. 147