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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).