Thai Durian Export Competitiveness to the People's Republic of China Case Study: Strategic Partnership with Alibaba Group
DOI:
https://doi.org/10.14456/rcmrj.2021.241054Keywords:
Durian, Export, Strategic partnership, RCA, Market shareAbstract
Considerable research has been conducted on the comparative advantage of Thai fresh durian exports post partnership with Alibaba in 2018, but a few papers have been focused on these periods of time. With this collaboration, how change in competitiveness? What is effect of agreement? The purpose of this paper is to conduct a thorough analysis of the Revealed Comparative Advantage (RCA) index and Market Share (MS) of Thai fresh durian to Chinese market from 2002 to 2018. The study reveals that Thailand has a comparative advantage in exporting fresh durian to China in 2018 (with score 26.92 and rate of change is 9.37 percent, compared with 2017) as a result of Thai rice flagship store formation, government supporting under Thailand 4.0 policy, the growing Chinese middle class, e-commerce and China’s preference for Thai fruits. Although, Thailand also has a strong export competitiveness of fresh durian to China, however, the growth of Thai fresh durian market share in China is growing at a declining rate. Although the annual market share in 2018 reaches 38.20 but rate of change declines 2.96 from previous year. As China announced the permission to import Malaysian unshelled durians that are frozen by specific process in 2019. Thus, Malaysia had become a main competitor in Chinese market for Thai durian. Therefore, the paper highlights the solutions to develop production process and export for maintaining Thai durian competitiveness in changeable environment.
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