Report Thailand’s Luxury Handbag Rentals Hit by Economic Shift

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Picture courtesy of Bangkok Post

 

Thailand’s once-bustling luxury handbag rental market is facing a downturn, marked by tightened consumer spending, fewer holidays, and a shift towards subtlety in style preferences. Siam Borrow Bag Co Ltd, a leading player in the high-end rental space, is experiencing a notable decline in business, struggling to recover post-pandemic.

 

Chadasa Panomyant, founder of the company, reflects on the challenging landscape. “From 2013 to 2019, we saw a boom. Renting luxury was perfect for those special occasions or holidays abroad. But after Covid, the economy has constrained us further.”

 

Recent statistics reveal a 30% drop in customers in the second quarter compared to 2024, highlighting a significant issue. Thai women, the primary clientele, often rent designer handbags for holiday photos or to complement particular outfits. However, the lack of international travel is a significant factor in the reduced demand.

 

“Fewer travellers mean fewer rentals,” notes Chadasa. Even financially capable individuals are hesitant, reflecting a broader trend towards careful financial decisions.

 

Adding a layer of complexity, the global “Quiet Luxury” trend has altered consumer behaviour. People now prefer timeless, minimalist pieces over conspicuous logos, impacting rental dynamics. “I expect this trend to continue,” Chadasa remarked, noting it could constrain market growth to single digits.

 

Recognising these challenges, Chadasa calls for government intervention to rejuvenate tourism and enhance economic stability. Increased spending power, she argues, is vital for revitalising the luxury rental sector.

 

Additionally, with premium inventory at risk, Chadasa emphasises the need for robust security measures. She advocates for a centralised system to screen renters effectively, minimising losses from unreliable customers. “Luxury should never mean liability,” she asserts, highlighting the importance of trust in high-end transactions.

 

  Adapted by ASEAN Now from The Thaiger 2025-06-25