 |
| Famous brands from around the world are increasingly found in major malls in Thailand, for example, Sisley in Central World Plaza, one of the major malls in Bangkok. |
|
|
|
More foreign fashion brands are entering the Thai market in recent years, with their business backed by the growing purchasing power among Thai consumers, according to a study conducted by the Hong Kong Trade Development Council (HKTDC).
Famous brands from around the world are increasingly found in major malls in Thailand: Bally, Chanel, Miss Sixty, Sisley, to name a few. The first Zara shop in Thailand was also unveiled recently.
From Hong Kong, major retailers including Baleno, Bossini, Crocodile, and Giordano are also setting up their stores in Thailand.
These foreign brands are targeting at the middle-end to high-end market segment, with their products usually marked at the least of US$25 to US$50.
Treble drivers
The report by HKTDC commented that the branded clothing business is buoyant in Thailand because the increasing household income and the large base of young population in Thailand are fueling the momentum for the growth of ready-to-wear fashion brands.
Figures show that the monthly income among Thai workers has an overall increase. Currently, around two million people in Bangkok earn between 20,000 and 30,000 bahts (US$500 and US$750) a month.
The report said that the income group has formed a strong base of "upper middle class" who will look to branded fashion products for identity, and is prepared to pay more for clothing that confers cachet.
It added that over one third of the Thai population are between the age of 19 to 39, who possess major purchasing power and are more willing to spend.
In addition, free trade agreements (FTA) have given a boost to the import of foreign goods, according to the HKTDC report. The China-ASEAN FTA drove tariffs down from 37% to 20% last year, with further cuts planned to bring them down to zero by 2010. The US-Thailand FTA has also benefited the import of the US goods.
With competition getting keener, some retailers are finding ways to stand out. Tesco-Lotus, Thailand's largest retailer that is built with UK retail giant Tesco, announces that it is to reposition its clothing sections from focusing on basic items to those with more fashion details.
And for foreign brands that wish to enter the Thai market, it is suggested they consider to team up with a local partner. Like Esprit, it is working with Minor Group, a major Thai importer, and G2000 and Bossini with Central Department Store.
|
| We are collecting readers' comment for improving our website. If you are willing to help, please CLICK HERE to complete a survey. Your comments matter. |
|
|
|
|
| Copyright © Adsale Publishing Limited. Any party needs to reprint any part of the content should get the written approval from Adsale Publishing Ltd and quote the source "ATA Journal for Asia on Textile & Apparel", Adsale Textile English Website - www.AdsaleATA.com. We reserve the right to take legal action against any party who reprints any part of this article without acknowledgement. For enquiry, please contact Editorial Department. |
Write a mail to the editor : 
