2013 another year of healthy growth for retailing
Grocery retailers saw another year of moderate retail value growth as well as new outlets being established throughout the country. Lower-income consumers have stronger purchasing power thanks to government policies, namely the increase of the minimum wage to Bt300 per day at the beginning of 2013, as well as a policy of supporting the agricultural sector. Urban families are shrinking, with an increasing number of young people moving out of the family home into condominiums, supporting growth in demand for convenience stores, notably for purchases of everyday groceries. Online shopping started to increase in popularity thanks to the increasing popularity of smartphones and tablets, as well as developed 3G infrastructure nationwide.
Online retailers make aggressive move
Department stores and supermarkets such as Central Department Store, Big C, Tops and Tesco Lotus have actively developed and promoted online sales and targeted urban consumers. On the other hand, solely Internet retailing players such as Lazada saw soaring value sales in 2012. Online sales of fashion clothing, new gadgets and accessories tended to receive a very positive response. Social media websites such as Facebook, Twitter and YouTube became necessary tools that retail players need to develop. Applications are becoming increasingly popular, enabling retailers to promote their products and exchange messages directly with consumers.
Grocery retailing grows stronger while non-grocery retailing growth is still positive
Grocery retailing moved aggressively in expanding new outlets in urban and regional areas. Chained players were the key catalyst for growth at the end of the review period. Convenience stores and supermarkets were among the top performers, while traditional grocery retailing remained positive and saw stable growth. Non-grocery retailing continued on a positive path, implementing multi-channel strategies such as store-based retailing together with Internet retailing. The new emerging trend in 2013 was the introduction and promotion of mobile retailing.
Luxury is in trend
Compared with the budget constraints faced by mass consumers, high-end consumers were not impacted by any economic circumstances over the review period. Consequently premium customers are among the top priorities of retail players. High-end department stores such as Siam Paragon entered into cooperative strategies with credit card companies such as SCB to promote weekend shopping exclusives limited to platinum and beyond platinum cardholders, with discounts of up to 80% from early morning to noon. At the same time, the new department stores in Bangkok are moving towards high-end, luxury-style shopping such as the new coming projects of Central Embassy and The Emquartier, which are expecting to open within the forecast period.
Positive prospects for forecast performance of retailing in Thailand
Grocery retailers and non-grocery retailers are expected to see strong growth in the number of new outlets with larger selling space thanks to expansion in regional areas, as well as increasing domestic consumption, supporting positive growth of retail value sales over the forecast period. Store-based retailing will dominate retail value sales, while non-store retailing will see stronger growth in coming years. AEC 2015 should bring a new dimension in retailing to Thailand, thanks to the entrance of new international chained players, as well as seeing new varieties of grocery products becoming widely available. Price competition will become more intense due to reductions in tariff barriers, which will push up the free flow of goods to Thailand.
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Discover the latest market trends and uncover sources of future market growth for the Retailing industry in Thailand with research from Euromonitor's team of in-country analysts.
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The Retailing in Thailand market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic number of stores, selling space and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- How big is the grocery/non-grocery/non-store channel in Thailand?
- Who are the leading retailers in Thailand?
- How is retailing performing in Thailand?
- What is the retailing environment like in Thailand?
- Which channels are winning or losing in the fight for consumers’ money?
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- Inform your marketing, brand, strategy and market development, sales and supply functions
This industry report originates from Passport, our Retailing market research database.