Thailand's luxury market is estimated to extend at a CAGR of 5,62% till 2028. Even though Singapore is considered the main market for business and shopping, Thailand has built its world of luxury lovers into a considerable number. The region is facing a booming interest in luxury goods with mega-mall culture, a young population, and tourism.

Thai luxury shoppers are mostly the younger generation and are huge fans of entertainment and celebrities. With this, the region also features notable Thai pop, film, and drama stars who paved their way to the global luxury market.

Tourism-driven Retail

Retailers and brands have to place themselves in the right space, size, and time to capture the opportunity of the country’s recovering tourism. Around 18% of Thailand's GDP comes from tourism, which will attain full recovery by 2025.

It is crucial to experiment with the traveling retail experiences in tropical places such as Phi Phi Islands, Phuket, and Koh Samui. The retailers must also notice and get ahead with ʻThe White Lotus effect,ʼ describing the show’s impact in leading the tourism increase at its filming locations. A posh traveling platform Virtuoso has noted a 38% rise in travel bookings to Thailand with the people asking for the locations shown in the show.

Here, they can also incorporate music-driven tourism with co-branded merchandising. One can also work on rescheduling their calendars based on major entertainment events like the Wonderfruit Festival, Summer Sonic Bangkok, Pelupo Festival, Big Mountain Music Festival, and the Maho Rasop Festival.

A trustable easy payment and positive reward offering for the tourists should be prioritized. The global brands have the opportunity to collaborate with regional apps such as AliPay, Grab, and Kakao to implement this act.

Sephora is stocking local brands’ products in its Thailand stores to fulfill the growing interest of international tourists in Thai Beauty.

Omni-progressive Experience

The brands and retailers have to forge reliable online and offline relationships with the customers. They have to work closely with social media and e-commerce sites from the region such as LINE, Lazada, Shopee, and TikTok Shop. According to Bangkok Post, Thailand reported 81% of consumers agreeing to pay more for the confidence and peace of mind they get when they directly purchase from brands and The Nation Thailand estimated around 97% of the consumers look for product description and information.

Price-focussed consumers are still looking for discounts and about 88% of Thai shoppers are considering the not-a-sale-focused promotional content before purchasing something. The sellers have to be careful with the payment methods too. Bangkok has 55% of e-wallet preferences and 33% of credit cards. Meanwhile, the remaining region still prefers the cash-on-delivery method.

Combining digital and physical aspects of the business is ideal. Having QR Codes and/or instant payment methods in stores are examples.

Simplus, also known as the Philips of Southeast Asia, faced tripled-up sales in the home-appliance sector and emerged to be the top brand in TikTok Shop with less than 50K followers through its content strategy of using domestic influencers.

Consumerism through Mega Malls

Thailand bears an advanced mall society. Therefore, the retailers can showcase the correct usage of retail and entertainment with hospitality and services for relaxation. They have to think of engaging the shoppers with more spaces featuring workshops, interactive communication sessions, art exhibitions, and food courts. These offers should be placed in the correct position.

Hosting a major pop-culture event and inviting celebrities to open and other major events in-store is good for brand awareness and consideration. The malls are serving as a go-to place for consumers after the extended work hours and night enjoyments. Here, the retailers and brands have to think of nocturnal approaches to engage them.

With global warming, many think malls are one of the coolest places to spend their time in peace and excitement. As a result, the retailers can work on offering the shoppers to spend their shopping spree in a bioclimatic and peaceful space.

Louis Vuitton is offering a 360-degree retail experience with the LV The Place Bangkok, which has a boutique, an exhibition on the brand’s heritage, and a restaurant by famous Indian chef Gaggan Anand, in Gaysorn Amarin Mall. Golden Goose has its first store in Thailand with a co-creation section with playful and personalizing aspects, combined with a food and drinks place, Younique Cafe. Gucci had its Gucci Visions exhibition in Emsphere Mall in June 2024. Siam Paragon Mall in Bangkok features brands such as Prada, Chanel, and Louis Vuitton along with gourmet dining restaurants and entertainment choices.

Thai Icons Leading the Global Luxury Market

Aligning with the key trends of the Thai entertainment industry which includes showcasing soft culture highflyers, is another strategy. Many new and famous releases are coming from Thailand on platforms such as Viu, Netflix, and iQiyi. Brands and retailers can use these platforms to determine the budding talents who have the potential to give visibility.

The shopping has to be entertaining for consumers and partnering with micro-level influencers and region-relevant celebrities is important here. 81% of Thai consumers buy goods from their favorite influencers' recommendations.

It is also advisable to take note of the boys’ love genre (BL), which has noteworthy introductions of young stars. The retailers can collaborate with local entertainment companies such as What the Duck, YUPP! and TADA. The global brands can offer a platform for the local talents to showcase their work outside of their home region. Making famous faces as the global and regional ambassadors as well as having them at in-store showcases, parties, and other exclusive events.

Dior has chosen actor Nattawin Wattanagitiphat, widely known as Apo, and Phakphum Romsaithong, called by the nickname Mile, who stepped into the limelight with the BL show KinnPorsche, as its ambassadors in 2023. The strategy gave 24% (by Apo) and 17% (by Mile) of erased media revenue.

Win Metawin, who is also the endorser of Gucci, Louis Vuitton, Tiffany and Co., and Omega was named as the brand ambassador for Prada in spring/summer 2023. Bright Vachirawit has modeled for Prada, Louis Vuitton, Gucci, and Burberry. He also walked for Daniel Lee's debut collection for Brit in fall/winter 2023. Tay Tawan Vihokratana serves as the brand ambassador for Loewe, whereas Billkin Putthipong Assaratanakul is the latest brand ambassador for Gucci and BamBam for Louis Vuitton. “Blue” Pongtiwat has been endorsed by Swarovski, Coach (for Spring/Summer 2024) and Tod's.

Cover image: Tay Tawan Vihokratana for Loewe, Win Metawin for Prada and Nattawin Wattanagitiphat and Phakphum Romsaithong for Dior, courtesy Elle, L'Officiel Hommes Thailand and CNA Luxury