Thailand is one of the most urbanized societies, with a population of nearly 66 million, of which, about 50.5% comprises of the urban population. Thailand is the second largest economy in Southeast Asia. The capital city of Bangkok is a social hub of Thailand, with a flourishing retail industry market. It fascinated not only Thai residents, but also many multinational retail companies to make investments in the country. Its retail market is evolving swiftly to meet the demands of the consumers with varying lifestyles, who are greatly motivated by the internet. The modern trade sector witnessed rapid expansion in Bangkok, as well as cities with higher urbanization levels, due to the continued growth of the tourism sector, and several government plans, such as opening the domestic market to foreign investors, along with advanced technologies to invest in retail business.
Key Market Trends Growth of the Tourism Industry in Thailand is Driving the Market
The tourism sector generates the majority of the revenue, and it plays a key role in driving the country’s economy. Tourists are augmenting the demand for products related to fashion, apparel, and electronics. Chinese tourists are the top customers of Thai stores. The most widely purchased product categories by Chinese consumers are health products, herbs, handicrafts, cosmetics, etc. The cosmetics products are popular in terms of purchasing for reselling, followed by clothing and herbs. The main groups of tourists visiting Thailand include China, Malaysia, India, South Korea, Laos, and Japan. Furthermore, the tourists from these six countries account for almost 60% of the total foreign tourists.
Increase in Urban Population in Thailand
Urban population comprises nearly half of the total population in Thailand, and these urban consumers are showing increasing propensity for convenience, high-quality brands frequenting smaller shops, stores and supermarkets near their workplaces or transportation routes, primarily to purchase daily necessities and meals rather than less-frequent, higher purchases at larger traditional markets. Over the past 30 years, in the country, urbanization has been a primary growth factor. The presence of a large young urban population is expected to augment the demand for retail sales of products, such as apparel, consumer electronics, fashion, and personal care.
Competitive Landscape The report covers major international players operating in the Thailand retail industry. In terms of market share, some of the major players currently dominate the market. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets.
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