Thailand’s $5B luxury market to overshadow Singapore’s

With world-class malls, influential celebrities, and an increasingly digitally engaged consumer base, Thailand is positioning itself as a serious contender in the global luxury market. Here’s how brands can attract the country’s high-spending consumers. While Singapore is often hailed as Southeast Asia’s luxury hub, Thailand is making strides to rival its neighbor. Thailand’s luxury market is valued at nearly $5 billion and predicted to grow at a compound annual growth rate (CAGR) of 6.15% through 2028, surpassing Singapore’s $4.06 billion market, which is set for slower growth. The difference? Thailand’s luxury sector thrives on high local demand for fashion, while Singapore’s market is largely sustained by tourist spending, particularly on luxury watches and jewelry. Angelito Perez Tan Jr., co-founder and CEO of RTG Group Asia, notes that this shift could intensify as China’s new visa-free policy to Thailand drives additional tourist inflows, potentially boosting Thailand’s luxury market even further. Fans lead the way Thai consumers, especially the younger generation, are fueling the country’s luxury ascent. This demographic is highly influenced by K-pop stars and takes cues from Thai celebrities who represent global luxury brands. Actors Nattawin “Apo” Wattanagitiphat and Phakphum “Mile” Romsaithong, known for their roles in the hit drama KinnPorsche, have attracted international attention for brands like Dior, mirroring the fervor traditionally reserved for K-pop idols. “A lot of Thai actors — actors, not actresses — have become the new K-pop stars because they have crazy fans around the world,” says luxury brand consultant Nichapat Suphap. “For Dior in Paris, fans didn’t come for Robert Pattinson or other Western celebrities. They came for the Thai stars.” Beyond Dior, Gucci has tapped actress Davika “Mai” Hoorne, Prada has onboarded Metawin “Win” Opas-iamkajorn, and Dior has recruited actress Tontawan Tantivejakul. These partnerships drive brand loyalty, especially among younger consumers who see supporting their favorite stars as a way to align with their lifestyles. Instagram, TikTok influence luxury consumption Thailand’s digital landscape is integral to its luxury market, with nearly 88% internet penetration and 98.5% smartphone ownership. Social media platforms like Instagram and TikTok play a key role in influencing consumer behavior. “I follow different models and bloggers to see what’s trending,” says Jarr Panitchanok, a 33-year-old luxury shopper from Bangkok, who notes that while trendy items and versatile styles catch her attention, she remains loyal to local brands like Boyy and Pipatchara for their distinct Thai identity. Umaporn Whittaker-Thompson, Group VP of Consumer Communications at Southeast Asian consultancy Vero, observes, “The younger demographic and entrepreneurial class are drawn to luxury as both self-reward and long-term investment.” Influenced by social media, this demographic values the quality, prestige, and durability of luxury goods, despite the high upfront costs. Retail discovery Thai consumers treat luxury shopping as a self-rewarding experience. In-store events, such as Hermès’ “In The Making” craft demonstrations or Cartier’s festive workshops, resonate with Thai consumers, who value engaging atmospheres that enrich the shopping journey. Bangkok-based Prapasri Vasuhirun, VP of Vero Xperience, highlights the importance of seamless online-to-offline experiences: “From discovering products to gathering information and making purchases, every step of the journey can start online and culminate in-store.” Line, Thailand’s leading messaging platform with 54 million users, allows brands like Louis Vuitton and Chanel to facilitate this journey, integrating e-commerce, live chats, and brand engagement through stickers and livestreams. With luxury retail on the upswing, Thailand’s appeal to luxury brands is growing rapidly. New mega malls such as EmSphere, Central WestVille, and One Bangkok, opening in phases, are bolstering the retail landscape and offering brands a gateway to Thailand’s affluent consumers. “Thailand’s retail business is experiencing a resurgence,” says Vasuhirun. “Combined with local demand and a robust social media influence, these developments make Thailand a key market for luxury brands.” As Thailand’s entertainment industry expands internationally, the country is becoming an increasingly influential trendsetter in luxury fashion, paving the way for a new era in Southeast Asia’s luxury landscape.

Thailand’s $5B luxury market to overshadow Singapore’s

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Published November 11, 2024

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Thailand’s $5B luxury market to overshadow Singapore’s