The tailor shop mystery . . .

[Khun004]

.

Thailand has many mysteries.

I'm trying to figure out one of them: How can so many tailor shops survive here?

I don't understand it.

Can anyone explain?

 

In my little soi, there is a modest hotel for budget travelers, not the sort who need many suits.

Yet, surrounding that hotel are three tailor shops.

In a year of living nearby, I've only seen one customer, in one tailor shop, once.

How can those shops survive?

 

Over near the subway station there are two more hotels; a bit more upscale, but still not attracting the suit-and-tie set.

Surrounding those two hotels are five more tailor shops.

There, too, I rarely see any customers.

 

Inside the shops I see Indian men, sometimes chatting earnestly with other Indian men, sometimes just sitting and staring at the door, waiting.

How do they pay the rent?

 

Throughout Bangkok, and elsewhere in Thailand, wherever there are lots of tourists, there are lots of tailor shops.

How can so many tailor shops survive?

It's a mystery.

Does anyone have any clues?

 

 

[elef]

Those indians (mostly sikhs) came to Thailand 100 years ago and thai citizens of course since many years. In Pattaya not so many indians (no sikhs), 2 in shops on 2nd Rd and 3 or 4 on Beach Rd, katoeys often take care of hotel shops.

 

What I've heard about BKK is that they are big families making big money in some shops and not so much in some, but must have shops to all family members. Of course these tailors just take measures - the actual work they have thai employees take care of or sometimes thai tailors as subcontractors. I've sometimes bought clothes from such subcontractors for under 50 % of the price in the indian shops, but same quality of course. I guess that the subcontractors get not more than 25 % of what customers pay in the indian shops.

 

However the katoey involvement in Pattaya I've never asked about.

[pe7e]

Many also have family members running multiple roadside market stalls selling cheap clothes and accesories, and some also opperate a wholesale business selling similar goods to other traders. I know 'Cliff Taylor' an Indian trading just off beach road Pattaya also has a thriving international mail order business in made to measure clothing, a friend of mine buys most of his more formal clothes off him, ever since I had some made for him on a previous trip. My friend is somewhat vertically challenged, and had great difficulty finding 'off the peg' clothes to fit him, he is delighted with the service offered despite never having visited Thailand. Many businesses have shop fronts aa a point of contact to conduct business rather than 'fulfill' business, if you see what I mean.

[Khun004]

What I've heard about BKK is that they are big families making big money in some shops and not so much in some, but must have shops to all family members.

Elef -

 

Most of your post is totally irrelevant to the OP question.

The one bit that is on topic -- quoted above -- doesn't compute at all, so I'll ask the question again in a slightly different way:

Why would so many tailor shops throw money away for rent, utilities, cost of furniture & fixtures, etc, if those shops have barely any customers?

How do they survive and stay in business?

[Bangkoktraveler]

Some of these shops make an occasional big sale (farang pay too much) so that helps tide over the low spots.

[Khun004]

Many also have family members running multiple roadside market stalls selling cheap clothes and accesories, and some also opperate a wholesale business selling similar goods to other traders.

pe7e -

 

That makes no sense at all in relation to the OP.

Maybe they do have roadside stalls elsewhere.

Still, why do they spend so much money on so many tailor shops: rent, utilities, cost of furniture and fixtures and hundreds of bolts of cloth on the shelves?

And, after spending so much to open so many shops, how can they stay in business, without customers coming into the shops and spending money buying something?

 

Many businesses have shop fronts aa a point of contact to conduct business rather than 'fulfill' business, if you see what I mean.

 

No, I don't see what you mean until you clearly explain what you mean.

What business are they conducting?

Why do they need so many shop fronts?

Why are the shop fronts so well-presented, as most tailor shops are?

Just what is this business being conducted, that it supports so many shops which have no customers coming or going?

 

The mystery endures.

 

[elef]

Why would so many tailor shops throw money away for rent, utilities, cost of furniture & fixtures, etc, if those shops have barely any customers?

How do they survive and stay in business?

 

All shops are over break-even AFAIK, but maybe not so much profit in some shops. They see this as a family company with 10+ shops and important is that all male family members are responsible for one shop, but they share the total profit.

Often they own the houses where the shops are located so they don't feel that they have any cost for rent. Actually they sometimes own the hotels where they have tailor shops. They also have import/export of textiles based in Pratunam - Little India. Some are also involved in other business like nightlife (NEP one example), restaurants, massage places and money exchange.

It's maybe not a western capitalistic concept of business, but they make money and are very rich so who can say they're wrong.

[Khun004]

Some of these shops make an occasional big sale (farang pay too much) so that helps tide over the low spots.

Bangkoktraveler -

 

Sure, maybe one shop wins that lottery once in a blue moon, but it's no basis for surviving in business.

With so many shops, so close to each other, price competition will be stiff, and margins will be thin, on virtually every sale.

 

One tailor shop in a neighborhood might make decent margins, but so many shops, all competing with each other, doesn't make sense at all.

Yet they don't close down.

On the contrary: I see new tailor shops opening in the tourist areas of Bangkok, Pattaya and Hua Hin.

 

Is Thailand experiencing a huge increase in tourists this year?

No.

Are the kind of tourists coming to Thailand changing, from the budget-travelers to more affluent classes who want custom-tailored clothes?

No.

Among tourists, is there a sudden shift in fashion -- back in their home countries -- to wearing custom suits and shirts.

Certainly not.

 

So, the mystery continues.

There's something behind this mystery, but what?

 

[pe7e]

Quote:Many businesses have shop fronts aa a point of contact to conduct business rather than 'fulfill' business, if you see what I mean.

 

Perfectly clear to me, but then, I am a business man A shop can serve many purposes, and selling good to people who cross its threashold is just one of them. Up until last year, I operated a modest shop in a small industrial market town in the UK, I had on sale in my shop, top designer sunglasses handbags and watches i.e. Gucci, Chanel, Armani, Omega, Boss ect. The other traders thought me crazy, it wasn't that sort of town, and the over the counter trade was indeed awefull BUT the real purpose of the shop was to obtain accounts with the design houses, enabling me to sell their highly marked up goods. The REAL market place was the internet under a different trading name where I sold several millions pounds worth untill they realised, (they don't sell direct to internet traders) So you see, shops aren't just used to hand goods out over the counter as you seem to think. There are hundreds of other reasons why they may exist, launder money or legitamise a working visa are just two that come to mind.

[Khun004]

All shops are over break-even AFAIK, but maybe not so much profit in some shops.

Cannot be.

With such a dearth of customers, every shop can not be over break-even.

Not even many shops can be over break-even.

That is, not from tailoring customers.

Is there something else going on?

 

They see this as a family company with 10+ shops and important is that all male family members are responsible for one shop, but they share the total profit.

Why would they throw money away like that, when there are other business options for the men in the family?

 

Often they own the houses where the shops are located so they don't feel that they have any cost for rent.

Imputed rent is still an opportunity cost of capital, no matter how one feels about it.

Business that base decisions on feelings about such matters don't last long in the marketplace.

Yet, many/most of the tailor shops here seem to endure.

 

They also have import/export of textiles based in Pratunam - Little India. Some are also involved in other business like nightlife (NEP one example), restaurants, massage places and money exchange.

They probably do, but that is irrelevant to the question on this thread.

If they are earning good money in Pratunam or NEP, why are they throwing that money away to maintain a number of unprofitable, little, tailor shops?

 

It's maybe not a western capitalistic concept of business, but they make money and are very rich

The economic principle of opportunity cost of capital operates exactly the same everywhere in the world.

Same as the principles of physics.

 

Now I am going to walk down the soi to get some supper.

That walk will take me past two tailor shops.

In many such walks past those two shops, I've never seen even one customer in either shop.

 

When I see something so mystifying, yet so widespread, as these Indian tailor shops, I wonder why.

Does anybody have any solid clues?