The business of leather goods

The long and unlikely path one Thai businessman took to success in leather goods exports to Japan.

Photo above of Pichet Vanich, the founder and owner of Handicraft Vanich Manufacturing, showcases some of his wares at a recent trade fair

Also read previous Bangkok Post leather articles on Thailand's leather shortage and the use of monitor lizad skins as leather.

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Leather Chap

Former street vendor and tattoo artist succeeds with innovative and stylish leather products using biker and cowboy themes
10/07/2012
Soonya Vanichkorn

"'It was a real struggle, like making money from dust," recalls Pichet Vanich, the 42-year-old owner of Handicraft Vanich Manufacturing, a small enterprise that makes leather bags and wallets inspired by the biker, heavy metal, cowboy and American Indian fads of the 1970s.

Today, Mr Pichet, a graduate of Bangkok Arts and Crafts College and with an expertise in leather, runs a business that exports 90% of its output to Japan and sees annual revenue of 10 million baht. He also made the costumes worn by the cast in the 2003 Thai period drama Khun Suk or Sema: The Warrior Of Ayodhaya.

As with many who "came from nothing" - to use Mr Pichet's own words - life was a struggle for years. Thirteen years ago, he was eking out a living as a sidewalk vendor on Silom Road, putting whatever he made on display. But that business did not do very well, so Mr Pichet then became a professional tattoo artist. His clients were mostly foreigners.

While in his early 30s, a close German friend paid for his flight ticket, his meals, literally everything to travel to Germany to open a tattoo shop there. And it was through tattooing that Europeans learned of his skill in making leather bags. A British man married to a Thai learned of his leather work through a mutual Thai shoemaker friend and placed an order for 1 million baht

"The order was so big that I decided to return to Thailand and open my own shop," said Mr Pichet

Passion and the desire to create kept him going, but that alone was not enough to sustain his initial success. He said several shops in Thailand sell similar products, so it is not just a matter of making something you feel like making and then hanging it up on the wall expecting someone to buy it.

What's important is to be yourself, to include your passion and innovation in your work while at the same time capturing the mood of the customers. They have to be able to get a feel for your products and say: 'Yes, that's what I want'," said Mr Pichet

He said innovation and creativity are not only about designing and coming up with ideas but also the ability to capture people's moods. Proper knowledge and valid information are also crucial for a sustainable business.

"Anyone can make leather goods, but to do it well you must have proper knowledge. I spend a great deal of my time in conferences, attending talks, using whatever channels I can find," said Mr Pichet, adding that the Office of Small and Medium Enterprise Promotion has been of tremendous help.

Established in 2004, Handicraft Vanich Manufacturing provides handmade leather goods designed and made to order from genuine animal skins - crocodile, snake, cow, stingray and python. It also makes Harley-Davidson motorcycle seats, wallets, belts, shoes, furniture and bags, with the main factory in Samut Prakan province employing about 30 workers.

The company operates two showrooms in Bangkok, at Chatuchak weekend market and Palladium Square in the Pratunam area.

Currently, 90% of the business is in the form of an original-equipment manufacturer for five Japanese companies

"It's very strange. Japan lost World War II, but Japanese have 100% accepted American culture," he said

While the cowboy trend has not proved popular among Thai customers in recent years, Mr Pichet believes it is making a comeback, especially among high-end male shoppers with an eye for vintage products.

"Any trend or fashion that has disappeared for a long time will make a natural comeback. Unlike the apparel industry in which fashion changes very rapidly, the cowboy fashion tends to go out of favour for a longer period of time, then makes its way back, which it's doing right now," he said

Competition may remain slight in the country, as the market has been rather narrow for a few years now, but China has started to produce similar types of leather products. Some of Mr Pichet's Japanese customers disappeared for a while to try out the Chinese products but always returned to him due to the inferior quality of the Chinese goods. Handicraft Vanich uses only top-grade leather made in Thailand.

"This is a bit of a drawback right now. Even though we use the best leather in the country, the really good stuff is imported, which bumps up production costs," he said, adding that he plans to upgrade to imported leather once his brand becomes better known.

It's a step-by-step process. Right now our goal is to build a brand for ourselves by producing diversified products to cater to larger target groups such as working professionals.

Mr Pichet said at the end of the day, product quality is of the utmost importance to business sustainability: "You need to pick the right raw materials and good-quality accessories, as the finer the artwork, the more value is added to your product.

(Source: Bangkok Post, Leather Chap, Former street vendor and tattoo artist succeeds with innovative and stylish leather products using biker and cowboy themes, 10/07/2012, Soonya Vanichkorn, link)


Leather Goods Industry Vocabulary

leather - a strong material made from animal skin that is used for making shoes, clothes, bags, etc (See Wikipedia)

leather goods - leathercraft, making leather into high quality craft objects or works of art, using shaping techniques, coloring techniques or both (See Wikipedia)

founder - a person who establishes an institution, business, or organization ผู้ก่อตั้ง
showcase - to show something like a new product to the public 

wares - goods that someone is selling

trade - 1. the buying and selling of goods การค้าขาย; 2. a job, especially one which needs special skill; occupation อาชีพ
trade fair - a large event where the goods and services sold by companies are shown to possible customers and buyers (potential buyers)

Pichet Vanich, the founder and owner of Handicraft Vanich Manufacturing, showcases some of his wares at a recent trade fair

chap - a guy, a man (British word) 
Leather Chap

vendor - seller of goods; a person who sells something พ่อค้า, แม่ค้า 
street vendor - a person who sells goods on the side of the street

tattoo - a permanent image, pattern or word on the skin which is created by using needles to put colours under the skin รอยสัก (See Wikipedia)
tattoo artist

innovative - using new methods or ideas เกี่ยวกับการปรับปรุงใหม่, ที่เต็มไปด้วยจิตใจปฏิรูปใหม่

biker - a motorcyclist who belongs to a group (See Wikipedia)
theme - the main subject of something such as a book, a conference, talk, product, etc
biker theme

Former street vendor and tattoo artist succeeds with innovative and stylish leather products using biker and cowboy themes

struggle - a very difficult task that you can do only by making a great effort ความพยายาม
enterprise - an organization, especially a business กิจการ, บริษัท,อุตสาหกิจ,วิสาหกิจ

inspired by

heavy metal
fad

"'It was a real struggle, like making money from dust," recalls Pichet Vanich, the 42-year-old owner of Handicraft Vanich Manufacturing, a small enterprise that makes leather bags and wallets inspired by the biker, heavy metal, cowboy and American Indian fads of the 1970s.

expertise - special skills or knowledge from study or practical experience ความถนัด ทักษะความรู้, ความคิดเห็นของผู้เชี่ยวชาญ

revenue - income from business activities รายได้
annual - happening once a year ประจำปี
annual revenue

drama - an event or situation, especially an unexpected one, in which there is worry or excitement and usually a lot of action; a play in a theatre or on television or radio, or plays and acting generally บทละคร, เรื่องเร้าใจ
period drama - a drama that recreates life during some period in the past; historical drama

costumes - the clothes that the actors in a drama wear
cast - the actors in a TV show or movie

Today, Mr Pichet, a graduate of Bangkok Arts and Crafts College and with an expertise in leather, runs a business that exports 90% of its output to Japan and sees annual revenue of 10 million baht. He also made the costumes worn by the cast in the 2003 Thai period drama Khun Suk or Sema: The Warrior Of Ayodhaya.

eking out a living - earning only a small amount of money
clients - (formal) customer ลูกค้า

As with many who "came from nothing" - to use Mr Pichet's own words - life was a struggle for years. Thirteen years ago, he was eking out a living as a sidewalk vendor on Silom Road, putting whatever he made on display. But that business did not do very well, so Mr Pichet then became a professional tattoo artist. His clients were mostly foreigners.

a close friend - a good friend, you know each other very well

mutual - between two or more people ร่วมกัน
a mutual friend - a friend that two people both have

While in his early 30s, a close German friend paid for his flight ticket, his meals, literally everything to travel to Germany to open a tattoo shop there. And it was through tattooing that Europeans learned of his skill in making leather bags. A British man married to a Thai learned of his leather work through a mutual Thai shoemaker friend and placed an order for 1 million baht. "The order was so big that I decided to return to Thailand and open my own shop," said Mr Pichet

initial - early; first; happening at the beginning ในเบื้องต้น
initial success

sustain - to keep going; to continue รักษาไว้
sustain his initial success

not just a matter of

Passion and the desire to create kept him going, but that alone was not enough to sustain his initial success. He said several shops in Thailand sell similar products, so it is not just a matter of making something you feel like making and then hanging it up on the wall expecting someone to buy it.

passion - a strong enthusiasm or interest ความชื่นชม หลงใหล
innovation - a new way of doing something นวัตกรรม

mood - the way you feel at a particular time อารมณ์
capture people's moods

valid - reasonable and generally accepted ที่มีเหตุผลพอ
valid information

sustainable - able to continue and be successful for a long time แบบยั่งยืน ที่ดำเนินต่อไป, ถาวร
sustainable business

crucial - very important because it effects the result of something สำคัญยิ่ง
crucial for ... - important for ...
crucial for a sustainable business

What's important is to be yourself, to include your passion and innovation in your work while at the same time capturing the mood of the customers. They have to be able to get a feel for your products and say: 'Yes, that's what I want'," said Mr Pichet. He said innovation and creativity are not only about designing and coming up with ideas but also the ability to capture people's moods. Proper knowledge and valid information are also crucial for a sustainable business.

proper - the right way; the right kind ; actual or real จริง (พระราชพิธีพระราชทานเพลิงพระศพจริง)
proper knowledge - knowledge of the right way to do something

conferences - a large meeting for a couple of days to bring together people sharing a common interest (for example, for example share the same profession (doctors) or the same academic discipline (geology, economics) at a university)

talks - 1. when a person talks about some subject in front of an audience; 2. negotiations, formal discussions of problems between different sides in a conflict in order to solve the problem
attending talks - going to a talk by an expert to find out about some subject or topic

channels - a way of doing something; a way of getting something done
using whatever channels I can find

tremendous - very good; very much ที่ดี ที่มากมหาศาล  very great in amount or level, or extremely good ใหญ่โตมาก
has been of tremendous help

"Anyone can make leather goods, but to do it well you must have proper knowledge. I spend a great deal of my time in conferences, attending talks, using whatever channels I can find," said Mr Pichet, adding that the Office of Small and Medium Enterprise Promotion has been of tremendous help.

handmade - not made by a machine (made by a skilled worker or "craftsman" or "craftsperson" with their own hands)
handmade leather goods

genuine - real
genuine animal skins

Established in 2004, Handicraft Vanich Manufacturing provides handmade leather goods designed and made to order from genuine animal skins - crocodile, snake, cow, stingray and python. It also makes Harley-Davidson motorcycle seats, wallets, belts, shoes, furniture and bags, with the main factory in Samut Prakan province employing about 30 workers. The company operates two showrooms in Bangkok, at Chatuchak weekend market and Palladium Square in the Pratunam area.

Original-Equipment Manufacturer (OEM) - a company that makes goods for another company that puts its own name on the goods and sells it under their own brand name

Currently, 90% of the business is in the form of an original-equipment manufacturer for five Japanese companies  "It's very strange. Japan lost World War II, but Japanese have 100% accepted American culture," he said.

trend - a new development in clothing, make-up, etc แนวโน้ม

comeback - a period when someone or something becomes successful or popular again กลับคืนสู่สนาม กลับมามีชื่อเสีัยงอีกครั้ง
make a comeback

natural - what is reasonable in a situation เป็นเรื่องปกติ ธรรมดา
make a natural comeback

high-end - high-quality and expensive
high-end male shoppers

vintage - an old style thing, object, product
vintage products

with an eye for ... - interested in... ; looking for while shopping ...
shoppers with an eye for vintage products

apparel - clothes
apparel industry

favour - 1. to give an advantage to someone or something, often in an unfair way ช่วยเหลือ; 2. something you do for someone in order to help them สิ่งที่ทำให้เป็นพิเศษด้วยความชื่นชม
go out of favour - people do not like anymore; not popular; unpopular

While the cowboy trend has not proved popular among Thai customers in recent years, Mr Pichet believes it is making a comeback, especially among high-end male shoppers with an eye for vintage products. "Any trend or fashion that has disappeared for a long time will make a natural comeback. Unlike the apparel industry in which fashion changes very rapidly, the cowboy fashion tends to go out of favour for a longer period of time, then makes its way back, which it's doing right now," he said

narrow - not wide; having a small distance from one side to the other, especially in comparison with the length แคบ
the market has been rather narrow for a few years now - not a lot of customers in this market

inferior quality - low quality
top-grade leather - high quality leather

Competition may remain slight in the country, as the market has been rather narrow for a few years now, but China has started to produce similar types of leather products. Some of Mr Pichet's Japanese customers disappeared for a while to try out the Chinese products but always returned to him due to the inferior quality of the Chinese goods. Handicraft Vanich uses only top-grade leather made in Thailand.

drawback - problem

bumps up - increases
bumps up production costs

upgrade - improve; make new, modern, and up-to-date
upgrade to imported leather

brand - a type of product made by a particular company ตรา, ยี่ห้อ
brand becomes better known
build a brand

"This is a bit of a drawback right now. Even though we use the best leather in the country, the really good stuff is imported, which bumps up production costs," he said, adding that he plans to upgrade to imported leather once his brand becomes better known.

process - a series of actions that you take in order to achieve a result แนวทางปฏิบัติ, กระบวน, วิธีการ
a step-by-step process - a process that can contains (can be broken down into) a series of steps

diversified - adding variety (usually to reduce risk, if one thing goes bad thenm another might succeed)
producing diversified products

cater to - do something to help a certain person or customer (meeting their special needs)

target - the goal you are planning to achieve เป้าหมาย
target groups - the group that you want to use your product or service; target customers

It's a step-by-step process. Right now our goal is to build a brand for ourselves by producing diversified products to cater to larger target groups such as working professionals.

of the utmost importance - very important

sustainability - situation or activity can continue for a long time
business sustainability - a business that can continue successfully for a long period of time

raw materials - materials in their natural state before being processed or used in manufacturing

accessories -
the finer the artwork - the higher quality the artwork

Mr Pichet said at the end of the day, product quality is of the utmost importance to business sustainability: "You need to pick the right raw materials and good-quality accessories, as the finer the artwork, the more value is added to your product.