BANGKOK — After revealing on social media that Thai T-shirt brand YUEDPAO generated over one billion baht ($31 million) in sales but only one million baht ($31,000) in profit, the company’s management explained their business philosophy: making quality products with slim margins to build customer relationships and bring a Thai brand to the global stage.
On September 26, YUEDPAO posted on Facebook under the headline “At YUEDPAO we sell for friends”:
“Dear beloved customers,
We can no longer hide the truth. After the viral discussion on X (Twitter) that we made a turnover of over one billion baht last year, but only one million baht in profit—yes, it’s true.
Throughout the year, we resisted constant pressure to raise prices. Our platform selling costs skyrocketed, yet we lowered prices on items where we reduced production costs. We wanted to prove that Thai fashion brands can achieve world-class quality.
We experimented with new marketing: outdoor media, brand ambassadors, billboards, bus advertising. We supported festivals and worked with charities to give young people opportunities, just like we once had. We may have overdone it so much that we almost lost money.
We are proud to stand our ground—that even as everything else rises, our prices will not. This reflects our values and our commitment to developing the best products and services for customers. We want to sell more through friendship, to prove our quality, to make our products accessible and recommendable. We have this conviction: If we make good things and sell in large quantities while making lots of friends, we will eventually achieve ‘economies of scale.’ For now, we are proud of our ‘economy of friends’—through reaching a billion in sales, through loyal employees, and through friends we’ve helped with various projects.
We want to remain the naive kid who is bad at math but good at making quality products, low profits but lots of friends, and we hope that one day we can bring a Thai brand to the world stage. Thank you for your love and support.”
From Crisis to Opportunity
Tanongsak Sae-eaw, YUEDPAO’s founder, shared at the PRACHACHAT FORUM: NEXT MOVE Thailand 2025 that shifting from reselling to building their own brand in 2013 brought major challenges. High production costs made competitive pricing impossible, causing sales to plummet 95% and nearly halting the business.
The turning point came from lowering production costs by using surplus fabric—material ordered by factories to replace defects, often resold at 50% discounts—and grade B fabric with minor defects sold at half price. This allowed YUEDPAO to regain competitive pricing.
The Winning Strategy
YUEDPAO’s business model focused on three key elements: shape-retaining T-shirts priced at 100 baht, a simplified product line offering only T-shirts, and 100% domestic production. This lean approach enabled better inventory management and tighter cost control, allowing the brand to remain competitive while keeping prices low.
During COVID-19, YUEDPAO increased marketing spending and focused on Facebook and TikTok while physical stores struggled. During the 2021-2022 retail recovery, the brand expanded into shopping centers when rents remained low post-pandemic.
Today, YUEDPAO operates in major shopping centers and has built strong customer trust through distinctive quality and affordable prices.
“The most important thing when starting a business is not to give up, to turn crises into opportunities and recognize your competitive strengths. Listening to customers and developing products according to market demand ensures sustainable growth,” said Tanongsak.
