The Brand Switching Analysis of Thai Rice in China: A Comparison with Vietnam

Abstract

This research was undertaken with the aim of finding the brand switching of Thai and Vietnamese rice exporters in the Chinese rice import market. This study explored the rice export data from Thailand and Vietnam to China in 1995 to 2012. The brand switching analysis (BSA) has been implemented to investigate whether there is a brand switching from Thai rice to Vietnamese rice and in-depth interview was used to analyze potential factors related to the switching. It was found that Thai rice export is definitely a problem in China, with a loss of 3% market share for Thailand and no corresponding loss for Vietnam. The plausible reason of brand switching from Thai to Vietnam due to Vietnam has higher yield, lower cost, policy in supporting farmers, cheaper price, "one team” marketing strategy and established rice storage overseas. Therefore, Thai government and farmers should try to lower the production cost, adjust production and come up with new strategies in order to compete with Vietnamese rice.