Luxury goods in Thailand - statistics & facts
Thai consumers are no strangers to luxury items, ranging from Gucci belts to Hermès bags. The luxury goods market in Thailand has been rapidly expanding over the past decade, driven by increasing disposable incomes despite income inequality and evolving consumer interest in premium products. So, who are the key players in the market, and what motivates Thai consumers to buy luxury products?
Younger generations of Thai customers not only search for trendy products on social media, but also for items endorsed by the celebrities they admire. In 2023, a survey found that most Thai consumers were willing to buy products promoted by influencers. Therefore, many luxury brands work with influencers and celebrities to increase their presence and market share in Thailand. Currently, around ten Thai actors and celebrities have partnerships with global luxury brands from Fendi to Balenciaga and Piaget.
The Thai luxury market
With the rising middle and upper-middle class representing the key consumer demographics for luxury goods in Thailand, purchasing luxury items has become not only about quality but a sense of pride or symbolic achievement. In 2023, Thailand’s luxury goods revenue stood at approximately 4.6 billion U.S. dollars and was forecasted to rise more than six percent in the following year. Although Thailand is a major tourist destination, tariffs and stringent regulations may cause luxury goods to have less competitive prices. As a result, domestic consumers account for the majority of the purchases. Thai customers are extremely fond of high-end fashion brands, including Louis Vuitton, Prada, and Chanel.Key players in the Thai luxury goods realm
The rising demand for premium fashion products has led global labels to open several shops in Thailand. For instance, in 2023, there were five Hermès stores in Thailand, ranking second in the SEA region after Singapore in terms of store numbers. In the same year, athleisure brand, Lululemon, also established its first shop in Bangkok. This has led to the expansion of high-end shopping malls. Thriving at the forefront of Thai luxury retail are Central Group with numerous department stores, Siam Piwat (owner of Siam Paragon), and duty-free retailer, King Power. On the other hand, Thai consumers do not shy away from pre-loved designer goods. Noticeably, in the past several years, Komehyo, a renowned Japanese secondhand shop, has been extending branches in different malls in Bangkok. Nevertheless, the prevalence of counterfeit luxury goods poses a significant challenge to the market.Influential factors for buying luxury items among Thai consumers
In Thailand, social media and e-commerce facilitate the integration of every step of the buying process; from finding goods and services to gathering data, reading customer reviews, making product judgments, and providing feedback. In 2023, a survey of online shoppers revealed that Thai consumers surpassed customers from other nations who purchased products via social networks. Therefore, the adoption of omnichannel marketing by luxury brands such as creating LINE Official Accounts (OAs) in Thailand to offer product information and hands-on customer service makes brands more accessible to the consumers.Younger generations of Thai customers not only search for trendy products on social media, but also for items endorsed by the celebrities they admire. In 2023, a survey found that most Thai consumers were willing to buy products promoted by influencers. Therefore, many luxury brands work with influencers and celebrities to increase their presence and market share in Thailand. Currently, around ten Thai actors and celebrities have partnerships with global luxury brands from Fendi to Balenciaga and Piaget.
