One of Thailand's most well-known manufacturers & exporters overcomes challenges: labour costs, hypermarts & cheap chinese goods. Photo above of Ekachai Youngvanich, vice-CEO of Satien Stainless Steel, who says the company has started to use robots at its 40-rai factory in Rayong because of chronic labour shortages that limit output. Click button to listen to Zebra Kitchenware to download Steely resolve Home-grown Zebra kitchenware battles piracy, labour strife and cheap Chinese imports. Somporn Thapanachai When migrant workers come here, they usually want to bring back the best thing from Thailand for family and friends at home. For many from Myanmar, one household item they are taking back is a Zebra stainless steel food container. "Our food storage is very popular among workers from Myanmar. They always take one or more home," said Ekachai Youngvanich, vice-CEO of Satien Stainless Steel, the producer of Zebra kitchenware. "Our brand with Thai language on the product is a well-recognised mark like Gucci."  The Zebra brand in Myanmar developed over three decades through border trade along Mae Sot in Tak and Three Pagoda Pass in Kanchanaburi. Fake Zebra products are available for cheap in Myanmar, sometimes sold by the same retailers offering the genuine product. "Buyers know that it's not the real Zebra brand, so it depends on what they really want," Mr Ekachai said. "We know about this, but generally we can only warn them not to openly sell fake products. Each year, sales of Zebra products to cross-border markets like Myanmar and via direct export generate 50-60 million baht of income, a small but not-to-be-overlooked segment. The company in 2011 met its sales target with revenue of 1.7 billion baht. That figure is set to grow 5% this year, with 70% of income generated by domestic sales and the rest by exports. Satien aims to expand its business in China at least at the same pace as Central Group's expansion of department stores on the mainland. The company appointed a sales agent in Beijing three years ago. "The export market is still difficult to predict due to the uncertainty in Europe and its implications for the global economy," he said. In Thailand, the company's production has failed to meet demand and the trend is likely to continue because of a persistent labour shortage at its 40-rai factory in Rayong, where it has 700 workers. Several workers may relocate when the new daily minimum wage is raised to 300 baht in some provinces. Satien began installing robots to allow the company to work two shifts a day and increase production. Labour is 15-20% of total cost. If we don't focus on automation, the on-and-off worker shortage will be an opportunity cost," Mr Ekachai said of the plan that forecasts revenue at 2.5 billion baht over the next five years. The company this year will produce about 7.5 million stainless steel pots, based on each needing one kilogramme of stainless steel. Established in 1966, Satien Stainless Steel Plc got its start producing spoons from material left over from production of stainless steel freezers. The company has found its road to success increasingly difficult with the arrival of hypermarket chain operators in Thailand more than a decade ago. Satien now sells about 30% of its products via this channel under its own brand name, as it has refused to act as an OEM (original manufacturing equipment) supplier to the discount stores, wary of being squeezed because of lower bargaining power. Last year it was honoured with the Best of the Best distinction at the Prime Minister's Export Awards for its achievement in exporting under its own brand. The rise of modern trade has also caused pain in the traditional trade channel, which is still the largest sales outlet for Zebra kitchenware. The Thai market still holds potential for Satien as a top-five kitchenware maker in Asean. With its durable quality, stainless steel kitchenware is ideal for higher-income consumers looking to replace aluminium items. Satien Stainless Steel is one of two big players in the stainless steel kitchenware market. Its Zebra and Sun brands control about half the market, while the rest is commanded by Seagull and a number of small producers. Satien is the only company in Thailand producing lead-free stainless steel noodle pots as required by the Food and Drug Administration. In order to be competitive with rising competition from imported Chinese products, the company has tried to reduce costs at its factory. One experiment involved installation of two wind turbines for power generation, but the outcome was not impressive. In future the firm may look into a solar farm for power, but for now it is switching to energy-saving light bulbs to cut electric bills. (Source: Bangkok Post, Steely resolve, Home-grown Zebra kitchenware battles piracy, labour strife and cheap Chinese imports, 7/02/2012, Somporn Thapanachai, link)  Manufacturing for Export Vocabulary stainless steel - "a type of steel that does not corrode, rust or stain with water as ordinary steel does, but despite the name it is not fully stain-proof. It is also called corrosion-resistant steel (CRES)  (See Wikipedia) stainless steel food container Zebra stainless steel food container - the most famous line of products of this company that has been manufacturing for export since the 1960s  (See website) Zebra kitchenware resolve - determination, will power, the strength and persistence needed to get some work or project done (not giving up, working hard)  steely resolve - very strong determination to finish some work or project home-grown - made at home (meaning: in this country Thailand) piracy - the act of copying and selling illegal copies การละเมิดลิขสิทธิ์ strife - disagreement or fighting between people or groups การขัดแย้งกัน  การต่อสู้กั labour strife - fighting between workers and the management of a company usually over wages  Steely resolve: Home-grown Zebra kitchenware battles piracy, labour strife and cheap Chinese imports  migrant - moving from one place to another อพยพ migrant worker - someone who travels to another place or country in order to find work (an immigrant is someone who comes to live in a country from another country) ผู้อพยพ household - a group of people, often a family, who live together ครัวเรือน household item - something used around the home (to prepare food, clean or decorate the home, etc) when migrant workers come here, they usually want to bring back the best thing from Thailand for family and friends at home. For many from Myanmar, one household item they are taking back is a Zebra stainless steel food container. storage - the putting and keeping of things in a special place for use in the future การเก็บ food storage - keeping food for eating in the future (must keep fresh and safe, so food does not spoil) our food storage is very popular among workers from Myanmar. They always take one or more home brand - a type of product made by a particular company ตรา, ยี่ห้อ mark - a symbol or little piece of artwork that identifies a brand or company recognise - know it when you see it well-recognised - everyone knows it (when they see it)  well-recognised mark - a mark that everyone knows when they see it Gucci - a well-known brand that produces shoes, handbags (See Wikipedia) our brand with Thai language on the product is a well-recognised mark like Gucci decades - periods of ten years เป็นสิบๆปี border - the official line separating two areas, regions or countries เขตแดน อาณาเขต trade - the buying and selling of goods การค้าขาย border trade - the buying  and selling of goods across the border between two countries (examples: Mae Sot, Mae Sai, Anranyapratet) fake - not the real thing or genuine (made to look like the real thing in order to trick and deceive people) ปลอม  ที่ทำปลอม ปลอมแปลง genuine - the real thing (not a fake) genuine product - the real product produced by a company like Gucci (not a fake) the Zebra brand in Myanmar developed over three decades through border trade along Mae Sot in Tak and Three Pagoda Pass in Kanchanaburi. Fake Zebra products are available for cheap in Myanmar, sometimes sold by the same retailers offering the genuine product. openly - doing in way that everyone can see, not hiding openly sell - sell in a place where everyone can se (not hidden or secret) openly sell fake products "Buyers know that it's not the real Zebra brand, so it depends on what they really want," Mr Ekachai said. "We know about this, but generally we can only warn them not to openly sell fake products."  generate - to produce ก่อให้เกิด create สร้าง กระตุ้นให้เิกิด income - money that people receive from work or some other source, used for household consumption and savings cross-border markets - markets along the border of two countries at which products from the two countries are bought and sold segment - a separate part of something ส่วนต่างๆของสังคม ตอน market segment - a group of customers with similar needs, who are the same age, income and have same habits, likes and dislikes (See Wikipedia) overlook - when a person does not see something that they should see (fail to notice, recognize or do something) not-to-be-overlooked - very important that a person notices or sees this thing not-to-be-overlooked segment Each year, sales of Zebra products to cross-border markets like Myanmar and via direct export generate 50-60 million baht of income, a small but not-to-be-overlooked segment. target - a goal; the amount you are planning to achieve เป้าหมาย revenue - income from taxes or business activities รายได้ figure - an amount of money จำนวนเงิน generated - created domestic - within the country ภายในประเทศ The company in 2011 met its sales target with revenue of 1.7 billion baht. That figure is set to grow 5% this year, with 70% of income generated by domestic sales and the rest by exports. expand - to become larger ขายตัวออกไป pace - speed; the speed and rhythm at which something happens ท่างทำนอง ย่างก้าว จังหวะ ที่สิ่งต่างๆ ดำเนินไป (See glossary) expansion - when something increases in size, number or importance การขยายออก appointed - put someone in a position within a company or organization sales agent - a person who works to sell the product of a company Satien aims to expand its business in China at least at the same pace as Central Group's expansion of department stores on the mainland. The company appointed a sales agent in Beijing three years ago. chronic - serious and lasting for a long time, happens over a long time เป็นประจำ shortages - when there are not enough goods for people to buy การขาดแคลน chronic labour shortages - not having enough workers (willing to work at certain low wages), a situation that exists over a long period of time limit output - prevents company from producing more Ekachai Youngvanich (right), vice-CEO of Satien Stainless Steel, said it has started to use robots at its 40-rai factory in Rayong because of chronic labour shortages that limit output. predict - to say that an event or action will happen in the future, especially as a result of knowledge or experience คาดการณ์ว่า พยากรณ์จากสถิติว่า global - throughout the world ทั่วโลก The export market is still difficult to predict due to the uncertainty in Europe and its implications for the global economy. demand - the need and desire to buy goods and services by households and businesses production has failed to meet demand  trend - 1. a gradual change or development that produces a particular result ทิศทาง แนวโน้ม 2. a new development in clothing, make-up, etc แนวโน้ม trend is likely to continue  persistent - continuing อย่างต่อเนื่อง shortage - when there is not enough of something การขาดแคลน persistent labour shortage In Thailand, the company's production has failed to meet demand and the trend is likely to continue because of a persistent labour shortage at its 40-rai factory in Rayong, where it has 700 workers. relocate - move to another location ย้ายไปตั้งอีกที่หนึ่ง wage - an amount of money that you earn for working, usually according to how many hours or days you work each week or month ค่าจ้าง Several workers may relocate when the new daily minimum wage is raised to 300 baht in some provinces. Satien began installing robots to allow the company to work two shifts a day and increase production. Labour is 15-20% of total cost. focus - be concerned with one thing ให้ความสำคัญ think about and work on one thing (rather than waste time on many), concentrate time and attention on one thing automation - machines and robots doing the work of humans on-and-off - sometimes it exists, sometimes not on-and-off worker shortage  opportunity - a situation when it is possible to do something that you want to do (See glossary) opportunity cost - the cost of any activity measured in terms of the value of the next best alternative foregone (that is not chosen) (See Wikipedia) forecasts - what experts say will happen in the future คาดการณ์ "If we don't focus on automation, the on-and-off worker shortage will be an opportunity cost," Mr Ekachai said of the plan that forecasts revenue at 2.5 billion baht over the next five years. The company this year will produce about 7.5 million stainless steel pots, based on each needing one kilogramme of stainless steel. Established in 1966, Satien Stainless Steel Plc got its start producing spoons from material left over from production of stainless steel freezers. arrival - when someone reaches where they are going (arrives) ขาเข้า การเข้ามา chain - a group of businesses (restaurants, hotels, etc.) owned by the same company บริษัทต่างๆที่อยู่ในเครือเดียวกัน operators - companies doing a certain kind of business hypermarket - large stores that sell cheap goods like Big-C and Lotus (See Wikipedia) hypermarket chain hypermarket chain operators decade - a period of ten years ทศวรรษ, ระยะเวลา 10 ปี The company has found its road to success increasingly difficult with the arrival of hypermarket chain operators in Thailand more than a decade ago. channel - a way of communicating with people, sending goods to market or getting something done ช่องทาง distribution channel - a way in which a company makes its products available to customers, also called "marketing channel" or "sales channel" (See Wikipedia) OEM (original manufacturing equipment) supplier - a company that manufactures products or components that are purchased by a company and retailed under that purchasing company's brand name (See Wikipedia) discount stores - large stores that sell goods at low prices (hypermarkets) wary - careful or nervous about someone or something because you think they might cause a problem ระมัดระวัง squeezed - forced into a difficult position (here: forced to sell for a very low price at which they may lose money)  bargaining - try to get a better deal from someone (for example, a better price for something you want to buy) bargaining power - the ability to get the price you want (when arguing over price before buying and selling)  Satien now sells about 30% of its products via this channel under its own brand name, as it has refused to act as an OEM (original manufacturing equipment) supplier to the discount stores, wary of being squeezed because of lower bargaining power. distinction - 1. receiving an award for something good you did; 2. the difference between two things ความแตกต่างระหว่างสองสิ่ง achievement - something very good and difficult that you have succeeded in doing การบรรลุผลสำเร็จ Last year it was honoured with the Best of the Best distinction at the Prime...