Market Size of Thailand Luxury Goods Industry
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 |
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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 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 Size Summary
The Thailand luxury goods industry is experiencing a dynamic transformation, driven by a steady economy and rapidly evolving consumer preferences. The market is characterized by a significant shift from traditional physical retail to digital channels, with younger consumers playing a pivotal role in this change. These consumers are increasingly focused on sustainability and social responsibility, influencing their purchasing decisions. The COVID-19 pandemic has accelerated the adoption of e-commerce and chat-commerce, with a substantial portion of the population engaging in online shopping. Social media platforms like LINE, Facebook, and Instagram have become crucial for luxury brands to connect with consumers, launch products, and enhance brand awareness. The clothing segment, in particular, is witnessing robust demand due to changing fashion trends and increased purchasing power, making it a central component of the luxury market in Thailand.
The competitive landscape of the Thailand luxury goods market is marked by the presence of major global players such as LVMH, Chanel, Hermès, and Kering. These companies are focusing on mergers, acquisitions, and new product development to strengthen their market position. The industry plays a significant role in the country's economy, contributing notably to GDP. Luxury brands are diversifying their product offerings and expanding their distribution networks, with a keen emphasis on online channels to gain a competitive edge. Recent developments include the launch of new boutiques and product lines, such as luxury watches and fragrances, highlighting the industry's commitment to providing unique shopping experiences and catering to sophisticated consumer tastes.
Thailand Luxury Goods Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porter's Five Force Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Type
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2.1.1 Clothing and Apparel
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2.1.2 Footwear
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2.1.3 Bags
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2.1.4 Jewellery
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2.1.5 Watches
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2.1.6 Other Types
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2.2 Distibution Channel
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2.2.1 Single-branded Stores
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2.2.2 Multi-brand Stores
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2.2.3 Online Retail Stores
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2.2.4 Other Distribution Channels
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Thailand Luxury Goods Market Size 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.