Thailand Luxury Goods Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 6.15 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Thailand Luxury Goods Market Analysis
The Thailand luxury goods market is projected to register a CAGR of 6.15% during the forecast period 2022 - 2027.
Over the medium term, the Thailand luxury market is in flux, with consumers demanding luxury goods from different backgrounds and starting points. A steady economy, rapidly changing consumer trends, the growth of boutique luxury brands, and the massive shift from physical to digital channels are creating a new competitive landscape for the luxury goods market. Younger consumers are helping to drive changes in luxury consumption and attitudes. They are heavily fixated on sustainability, and most luxury consumers say they prefer brands that are socially responsible.
This is in accordance with the trend of digitalization in the new era, whose vendors are not only competing with the prices of their offerings but with customer services in terms of quality and how fast they can take their clients through customer journey from the pre-purchase to purchase and post-purchase periods.This has further contributed toward the overall growth of the luxury goods market.
Since the COVID-19 pandemic has forced a major part of the global population to sit at home, owing to travel restrictions and lockdown, the luxury goods industry has been hit hard by the pandemic, especially in this region. To reach out to the customers and provide awareness about their products, most luxury companies were focusing on e-commerce. The emergence of chat-commerce has provided consumers easy access to product-related information and prices through online sources. It became the main approach to conducting a business that entrepreneurs should seriously consider. More and more consumers regardless of their age and gender embrace e-commerce and online shopping, contributing to the growth of Chat Commerce, an already lively trading channel that still has more room to grow. According to the LINE Company Thailand, since the COVID-19 pandemic began sweeping across the country, about 83% of Thais have a history of engaging in online shopping and 71% of them made transactions from smartphones.
Thailand Luxury Goods Market Trends
This section covers the major market trends shaping the Thailand Luxury Goods Market according to our research experts:
Growing Influence of Social Media on Buying Decisions
Nowadays, social networks have become an integral part of everyday life. Facebook, TikTok, Instagram, Snapchat, Twitter, and Pinterest among others continue to engage users with relatable content, making them spend hours scrolling through their feeds. To gain traction and reach out to a larger customer base luxury goods manufacturers also use social media to launch their products. For instance, in 2020, a global brand such as Burberry, Chanel, Cartier, Dior, Gucci, Lacoste, Louis Vuitton, Swarovski, Tiffany & Co., etc. have launched their LINE Official Account LINE is an instant messaging and call application that is one of the leading social media platforms in Thailand and leveraged the platform to communicate their brand story, to close sales and to create the brand and product awareness of their luxury good. According to International Trade Administration, the Internet is playing a crucial role for Thai consumers of luxury products, in the year 2021, Thai people use social media and mobile apps to research new products before making purchases. Thai shoppers are already high on the list of consumers who purchase directly through the internet, with 36.60 million purchasing consumer goods via the internet. Most consumers in Thailand read reviews on forums or social media to evaluate a product before purchasing. Social media helps consumers to make aware of recent trends in luxury goods which helps to boost the market.
Clothing Segment to Dominate Owing to Rapidly Changing Fashion Trends
The clothing segment is expected to hold a major share owing to its increasing demand from both men and women consumers along with rapidly changing fashion trends. However, this segment is expected to grow rapidly because of the increasing demand, specifically for luxury products. Now, the industry has an important contributing role to the country's economy, accounting for approximately 17 percent of total GDP. It has the far most central sector in the fashion industry. The average pay for men and women across the country is also one of the prominent factors leading to spending more on luxury apparel. Aside from an increase in purchasing power, Thai consumers are also becoming more sophisticated in terms of their tastes in luxury goods. Knee-length boots, cheques and stripes, pearls and beads, and more - here are some of the fashion trends to explore in Thailand being one of the most attractive tourist destinations always attracts millions of travelers from across the world. Moreover, the fashion industry is already buzzing with iconic collaborations, like Balenciaga-Gucci, Dior-Sacai, and Supreme-Tiffany and Co, merging luxury with casual styles to create something unique for everyone. Moreover, Pinterest shares that people have been taking extra notice of loungewear. Searches for 'lounge lingerie' have increased manifold, hinting at a major fashion trend for 2022 which is expected to boost the segment.
Thailand Luxury Goods Industry Overview
The Thailand luxury goods market is highly competitive with the presence of various companies. Some of the major players in the market are LVMH Moët Hennessy, Chanel SA, Hermès International SA, and Kering SA. Emphasis is given to the merger, expansion, acquisition, and partnerships of the companies along with the new product development as a strategy adopted by the leading companies to boost their brand presence among consumers. In October 2019, Louis Vuitton Thailand, the renowned fashion house, launched its maiden store in Phuket. The new store is located in the Central Phuket mall which is characterized by its distinctive interiors - a perfect mix of local elements and international spirit. Players in the market are diversifying their products and expanding their distribution circles, and they are experimenting and advertising through online channels to acquire a competitive edge in the market.
Thailand Luxury Goods Market Leaders
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Moet Hennessy Louis Vuitton (LVMH)
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Hermes International SA
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Chanel SA
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The Swatch Group Ltd
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Kering SA
*Disclaimer: Major Players sorted in no particular order
Thailand Luxury Goods Market News
- In July 2022, Cortina Watch Thailand launched the new luxury watch boutique at The Mandarin Oriental Hotel. Providing customers the unique shopping experience. The new boutique combined 3 watches brand within area of 156 sqm., including Patek Philippe, Franck Muller, and Breguet.
- In July 2022, Ulysse Nardin unveils a new model launch of its new Diver Chrono Great White it is a limited edition watch with satin finish titanium case and displays a white, unidirectional, rotating, rubberized bezel.
- In June 2022, Estée Lauder Travel Retail launched its luxury fragrance collection in Thailand in partnership with King Power Duty-Free. The Luxury fragrance collection, featuring eight scents, will be available via the retailer's downtown and online stores, and Suvarnabhumi airport.
Thailand Luxury Goods Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Market Overview
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Clothing and Apparel
5.1.2 Footwear
5.1.3 Bags
5.1.4 Jewellery
5.1.5 Watches
5.1.6 Other Types
5.2 Distibution Channel
5.2.1 Single-branded Stores
5.2.2 Multi-brand Stores
5.2.3 Online Retail Stores
5.2.4 Other Distribution Channels
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Moet Hennessy Louis Vuitton
6.3.2 Kering SA
6.3.3 Chanel SA
6.3.4 Hermes International SA
6.3.5 The Swatch Group Ltd
6.3.6 PVH Corp
6.3.7 Rolex SA
6.3.8 Prada SpA
6.3.9 Ralph Lauren Corporation
6.3.10 The Estee Lauder Company
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
Thailand Luxury Goods Industry Segmentation
Luxury goods are products that are deemed highly desirable within society due to their premium quality. Thailand's luxury goods market is segmented by type and distribution channel. By type, the market is segmented into clothing and apparel, footwear, bags, jewelry, watches, and other accessories. By distribution channel, the market is segmented into single-branded stores, multi-brand stores, online retail stores, and other distribution channels. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).
| Type | |
| Clothing and Apparel | |
| Footwear | |
| Bags | |
| Jewellery | |
| Watches | |
| Other Types |
| Distibution Channel | |
| Single-branded Stores | |
| Multi-brand Stores | |
| Online Retail Stores | |
| Other Distribution Channels |
Thailand Luxury Goods Market Research FAQs
What is the current Thailand Luxury Goods Market size?
The Thailand Luxury Goods Market is projected to register a CAGR of 6.15% during the forecast period (2024-2029)
Who are the key players in Thailand Luxury Goods Market?
Moet Hennessy Louis Vuitton (LVMH), Hermes International SA, Chanel SA, The Swatch Group Ltd and Kering SA are the major companies operating in the Thailand Luxury Goods Market.
What years does this Thailand Luxury Goods Market cover?
The report covers the Thailand Luxury Goods Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Thailand Luxury Goods Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Thailand Luxury Goods Industry Report
Statistics for the 2024 Thailand Luxury Goods market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Thailand Luxury Goods analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
