The purpose of this study was to describe opportunities and threats as well as to analyze strategies to develop design, package and brand of an artificial flower product made from rubber leaves. Community participation as in the Philosophy of Sufficiency Economy was applied with participatory action research of quantity and quality data. Data were collected from interviews, questionnaires and village brainstorming between handicraft groups, the researcher, supervisors and others who provided support. The study found that the handicraft group needs to develop the product, packaging and brand of the artificial flowers made from rubber. The product was named as "Baiyang Thong" by handcrafters in Hu-Rea, Hatyai. There were 18 types of products before implementing knowledge management, together with another 4 types of value added products. Based on knowledge management, another 6 types were created and the packaging was made from natural materials, a significant improvement over competitors in the market. The overall result of communities’ participation under the Sufficiency Economy Philosophy showed the high levels with three principles of reasonableness, moderation and the condition of knowledge are 4.40, 4.33, and 4.00 respectively. Virtue was at a middle level of 3.33, and self-immunity resulted in a low level of 2.33. Moreover, all the results derived under the Sufficiency Economy Philosophy were at the high level of 3.77.