A Complete Report on the Retail Industry Sector of Thailand
Thailand is one of the economically most influential countries in South Asia. The capital of Thailand is Bangkok, which is the social hub of the country, as well as a booming retail sector. This retail sector is not only fascinated by the Thai people but also many small and big retail companies are continuously making investments in this sector.
The retail market of the country has developed a lot over the years to meet the growing demands of the customers. The needs of the people have also changed a lot with time starting from their lifestyle to food habits, people are now greatly motivated by the internet. The economy of this nation is greatly dependent on exports.
Impact of the retail industry on the GDP of Thailand
From the years 1980 to 2012, the economic growth of Thailand increased a lot. Considering the current GDP figure of the nation, it can be said that in the last 32 years, the Thai economy has increased almost sixteen times, which is truly commendable in all respects.
As per the reports of the IMF, Thailand has the 32nd biggest economy in the entire world. The country has undergone five growth periods in terms of GDP. Retail sales grew on average 3.7% annually from 2010-2019. As we emerge from the global pandemic, retail is immensely growing at the rate of 7% in 2020 and over 14% in 2021. NRF forecasts that sales will grow by between 6% and 8% to more than $4.9 trillion in 2022. The retail business sector of Thailand contributes almost 80% of the country’s GDP.
Apart from the city of Bangkok, the retail sector of the country has one positive advantage, and it is a strong consumer market. The middle-class community of this country strongly supports the growing outlets of the country.
The fashion industry, the grocery sector, and sports items have received wide popularity across the world. Consumer appliances and electrical items have made their places in the retail sector. The overall non-food and food retail chains are expected to increase a lot until 2020.
The retail market condition of Thailand
The retail industry of this country has been divided into segments based on product demand and supply. These segments are as follows –
- Apparel and footwear
- Home and Garden
- Consumer electronics
- Grocery items
- Personal accessories
- Electrical and mobile gadgets
The retail sector of this country was dominated by small shops in the early days, and now it is replaced by new retail centres, shopping malls, and hypermarkets. It is followed by a chain of a wide number of convenience stores, franchise stores, and licenses in more than 18 countries all over the world. It holds almost 50% of the market share of the country.
The hypermarket of Thailand has also been fueled by foreign retail investors making their straightway to the market. The growth has been paused for supermarkets and convenience stores as well. The market competition has also increased a lot, which leads to the establishment of both small and large-scale industries.
In recent years, the retail infrastructure of the country has also changed a lot. More and more retail places are offered to companies annually. Presently, an approximate amount of 1.1 million square meters of the retail marketplace has undergone construction. Among these 5 million square meters are located mainly in suburban areas.
The rest 40% is in the midtown and 15% in the downtown sectors respectively. You will be surprised to know that the retail supply of this country has reached about 7 million square meters. Moreover, six new retail hubs have been added to the retail section of this nation. Besides these, shopping malls also contribute a huge portion to the country’s GDP.
The retail giants of the country are now bringing a wide variety of renovations to this sector to fulfil the growing demands of the customers. These important renovation projects are Siam discovery, Central Plaza Pinkalo, Central Plaza Bangna, etc. a wide number of luxury products are also available in the retail market of Thailand which firmly predicts its future growth over the past two years, with more than 80 new brands have been established, and they have made their market in the retail sector. The stores of luxury goods have almost got doubled over the years.
With the growing popularity of digitalization, the internet, and the increase in a social media interaction, the Thai people are now more indulged in online shopping through the use of Smartphones. Thailand has been ranked in the top 10 e-commerce global market lists. Retailers are observing that this trend is continuously moving towards creating multi-channel strategies, which will create a revolution in the retail market sector of the country.
The digitalization of this platform will bring new sales revenues. For all these reasons, many retailers have taken this online platform and introduced mobile applications through which they promote their products and services. This technique helps them to attract customers’ attention and thereby generate new leads.
The retail sector of Thailand is presumed to grow with the scenario of the present political environment. It should be noted that the people of Thailand are constantly shifting from their traditional market concept to online markets and the modern trends of the retail market. It is surely good news for the country.
Starting from buying high-tech smartphones to smart television sets, they are becoming aware of the latest technology, and therefore, it is hoped that this tech-savvy population will surely more growth and prosper in this retail sector of the country.
What are the different retail sectors of Thailand?
- Food and beverage: It is a booming retail sector of the country. The food consumption technique of the people is changing continuously along with the growing change in income of the people. These changes in the overall lifestyle of the people are due to growing urbanization across the country.
- Consumer electrical products: The market for consumer electronic goods has shown a positive result in the retail sector of the country. Consumers will now be able to buy smart TVs and other electronic items from the retail markets of the country.
- Automobile industry: this sector also contributes a lot to the country’s GDP, and it is a booming sector of Thailand’s retail market.
Thus, from the above discussion, it appears that the retail industry sector of Thailand is doing well, and it is hoped that it will bring more progress with the changing requirements of the customers.
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