By Barbara Sibbald
They don’t exactly meet the designated requirements, but there can be no doubting the success of the OTOP shop in picturesque Phayao, Thailand.
OTOP, or One Tambon One Products, is a Thai government program launched in 2001 which was inspired by Japan’s One Village, One Product initiative. It supports local economies by encouraging communities to develop and market unique, high-quality products using local resources and “wisdom.” Each Tambon, or sub-district identifies a superior local product to receive formal branding as its “starred OTOP product”. As of 2021, there were 93,414 OTOP producers and 61 sales outlets. Sales in 2019 were THB1.1 billion (USD 37 million).
Despite the name, not many of the products in the OTOP shop here in Phayao have that designation. Only four of the 100 plus on display actually have it. They include packaged rice, often used for rituals; table coverings with exquisite hand-crocheted edging; hand-made baskets; and a shoe shop.
Phadkaew Ngammuang, who sells the OTOP rice products says the designation has made her product more successful. She continues to sell at the city’s two weekday markets, but is at the OTOP shop as well. “It’s easier for me than being just at the markets,” she said. Buddah Days are particularly busy.
Phadkaew, who is president of the Network of Informal Workers in Northern Thailand, said she understands how some home-based producers might find OTOP designation difficult to maintain. For example, she is supposed to go to Bangkok for OTOP meetings, but she’s not reimbursed and loses business and production. She’s only gone twice.
For many home-based workers the requirements of certification are also complicated, said Paphavinee Khamgphonngam, director of Phayao Municipality’s social welfare division. The foundation of the program is the selection of the OTOP Product Champion. Products are evaluated and categorized into five levels depending on aspects such as the ability to export or standardize production. “But they don’t’ need it to get into the shop,” said Paphavinee. Or to sell.
The OTOP Shop opened in October 2021 in the park-like setting of the Phayayo Muncipality complex, which also includes a library, playground, offices and nearby cultural attractions. The shop building was initially a food court, but after that failed, it was turning into a complex of 12 “shops” or stalls facing out into a wide paved courtyard. Five are run by HomeNet Thailand and its many local members, and seven by the municipality. Each features an array of products, all made in Phayao Province. Many of the products are souvenirs such as fish-shaped key purses, crocheted key-fobs, or massage products. Food, clothing and household goods such as mats are also on offer.
“We have to sell many things to get customers,” said Aurai Chuasaard, the OTOP shop manager. All the products are made in the province. Sales are especially brisk during the high season and New Year, and when people typically retire in September. OTOP Shop is open daily year-round 8 a.m. to 6 p.m.
HomeNet Thailand (HNT), which was established in 1999 now operates in 5 parts of Thailand including 20 years in the North. The non-governmental organization which supports home-based workers, consists of the HomeNet Thailand Association (some 5,000 home-based workers) and a foundation for labour and employment. In 2016, it helped establish the Federation of Informal Workers of Thailand (FIT) which now represents over 23,000 workers. HNT also wants more OTOP products.
“We’re trying to get more all the time, said Daonapa Panyawong, Northern Thailand’s coordinator for HNT. “We’re ready when they are.”
In addition to enhancing sales, producers with the designation can attend the OTOP Academy to learn about marketing and business. There are also exhibitions and events plus marketing channels.
OTOP has advantages, but the main thing is to improve all the products and to help people make more income on their business in Phayao, said the municipality’s Paphavinee. “It’s not just about getting OTOP branding in the future. It’s also making work for people in the local area so they can have a better life and help the province. That’s the most important thing.”
In effect, OTOP Shop is a permanent retail base for home-based workers in the area.
The Municipality of Phayao is trying to expand its activities and attractions to get people to come to the province. One focus is on making the municipal centre a tourism hub. There’s already the OTOP shop, a performance stage plus a beautiful lakeside location near the city’s trademark serpents in the water. In the fall of 2025, they are going to add more features: an arts and crafts area, open-houses at adjacent home-business where things such as sweets are manufactured, as well as a connection to the local temple. And the popular weekend street market will also be moving to the municipal property.
“This new place will be home to tourists,” said Paphavinee. “This will help improve things even more.”
