Issue 9: 4 Aug 2014

It might be less than a month since Germany lifted the World Cup, but people around the globe are still wearing the replica kits. Many of these are made in Thailand.

Hong Seng Knitting’s Factory

Thailand has long been regarded as one of the major producers of clothing worldwide. Last year, exports in the sector amounted to more than US$5 billion. What is less well known is that much of this is from exports of sportswear particularly to the USA, UK, Germany, China, Hong Kong and Japan.
“We started exporting in 1977,” says SukijKongpiyacharn, the managing director of Hong Seng Knitting, one of Thailand’s leading sportswear manufacturers. “Now at least 90% of our production is sportswear.”

At face value, Hong Seng Knitting is unremarkable. Without its own brand, the company is an original equipment manufacturer or OEM. Traditionally, international sportswear brands would send their specifications to OEM companies, who would quote for the work, send a prototype for improvements and finally for approval. The process normally takes weeks.

Hong Seng Knitting, however, is changing with the times. “We call ourselves Smart OEM,” says Kongpiyacharn. “We offer on-site development to our clients. Instead of the old procedure, our clients fly [to Thailand]. Their designers work and brainstorm with our developers. This shortens the process to three to 10 days.”

A shortened approvals cycle is not the only thing that clients appreciate in the new ‘smart’ system. “Our clients like it – now they fly to Thailand every season,” says Kongpiyacharn.

Hong Seng Knitting might not be innovators, but they are bringing new technology and processes to a mass market. “If you look at the footballers’ kit at this year’s World Cup, you’ll notice that they are getting slimmer,” says Kongpiyacharn. This is made possible by lasers, which perforate the fabric with tiny holes allowing the sweat to evaporate more easily.

Kongpiyacharn believes there is a myth surrounding the low cost of labour in other competitor nations. “People usually think that labour wages are cheap in China, but this is not true,” he says. Instead he feels that Thailand has a geographical advantage that allows it to capitalise on cheap labour from other countries, such as Myanmar.
Many of the 6,000 people employed in the company’s factories originate from Myanmar. All have work permits, welfare, and social security numbers.

“In Thailand, there are many auditing companies,” says Kongpiyacharn, mentioning international organisations such as SGS, TGS Global and the International Organisation for Standardisation (ISO). “This guarantees that our labour force is treated fairly. For example, 60 working hours per week is one of our golden rules.”

For more information, visit http://www.hongseng.com

Words by Ratipol Opasjaroenkij