05_Preread_StoreStrategy

Specific market insights: Thailand

Key competitive pressure

Potential response strategy

Price Sensitivity and Competition from Low-Cost Imports

Differentiating through quality, local sourcing, and value-added services

Thai consumers are highly price-sensitive, and the influx of low-cost imports intensifies competition

“The intensity of trade competition is creating an uneven playing field. Uncontrolled, low-cost imports are flooding the market” Nath Vongphanich , president of the Thai Retailers Association

Local retailers face challenges competing with cheaper imported goods, affecting market share and profitability

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E-commerce Expansion and Digital Transformation

Keep adopting omnichannel model, integrating online and offline experiences

The rapid growth of e-commerce is reshaping consumer shopping habits

Shopee and Lazada dominate the online retail space, offering aggressive promotions and a wide product range

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Retail E-Commerce 36.8% 2019-24 CAGR

Retail offline 0.03% 2019-24 CAGR

CR2 = 43.3%

Tourism-Driven Retail Growth

Tailoring offerings to tourist preferences and invest in multilingual staff and tax refund services

Thailand’s status as a major tourist destination influences retail dynamics

Number of international tourist arrivals in Thailand (million)

Retailers in tourist hotspots like Bangkok and Phuket benefit from high tourist footfall, boosting sales in fashion, electronics, and cosmetics

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39.8

35.6

28.2

6.7

0.4

11.1

2019

2020

2021

2022

2023

2024

26

Source: broker reports, public articles, public news, Euromonitor

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