CEO Somsak Chataweesak said that the company two months ago laid off about 150 workers, which are almost half of the workforce.
The lay-offs were made after the company cut overtime four and five months ago to reduce the problem of overstocking.
The company's factory, located on Chan Road in Bangkok's Yan Nawa district, currently runs operations until 5pm every working day, down from 11pm previously.
"We have seen a drop in orders from major Crocodile markets including Singapore, Japan and Taiwan, which have been hit by the global economic crisis. Some have shifted their purchase orders to other countries such as China and Vietnam, which are able to produce the apparel at less cost," said Somsak.
Chattaweekij currently exports licensed Crocodile apparel to five markets in the region, which contribute about 30 per cent of sales. The number of export markets however declined from eight countries previously.
"We have seen a 30- to 40-per-cent drop in domestic sales, and the plunge is beyond that for exports," said Somsak. He said the factory currently shouldered stock of Crocodile apparel worth between Bt300 million and Bt400 million. A hard sales campaign will be made domestically to reduce the stock burden.
"We have set our domestic sales to reach about Bt300 million this year," said Somsak, admitting that the actual sales might far below the target due to the turmoil in the local economy. The company has achieved only Bt40 million in domestic sales so far this year.
Tan Hian-tsin, founder of Singaporean-based Crocodile International, said despite the global economic difficulties, Crocodile apparel still enjoyed growth of between 5 per cent and 6 per cent every year. Some new markets, such as China and India, are doing quite better than other markets.
"We have seen double growth in China. In India, the sales are coming up very fast," said Tan, who came to Bangkok yesterday to donate 600 wheelchairs to foundations in Thailand.