Thailand's Luxury Shopping Centers?

[pkspeaker]

Just took a walk through the new Emquartier (or whatever).. it looks just like the Terminal 21 at the next bts stop, and 2 more bts stations there are what, 6 more of these huge malls? And on the outskirts of the city, there are more massive malls.. I see all these brand stores Victoria Secret, UNIQLD, etc. There is a big store that sells only ladies handbags.. but I rarely see anyone buying anything.. They all carry the same type thing, most Thai people don't buy this stuff(except for the super ruch), it seems most of this is directed at foreigners, who could just as easily buy these things in their own country. Then there are all these stores selling phones, do people really buy that many phones? My last phone I bought used and it lasted for 5 years..

In march I was the netherlands for the month, I went to the Hague and Amsterdam, both cities have like 1 of these luxury brand shopping centers , I think I saw 1 Apple store in each city and 2 Samsung/other cell phone stores, I didn't see any big electronics stores selling TVs etc but I know there is a big shopping center in the outskirts of Amsterdam and I only stayed in the tourest areas.. but still, Is Thailand's market for luxury items really so much bigger than a country like the netherlands which has a larger economy? maybe its because Thailand has a larger population and tourism, but the netherlands actually has a population of 17 million and even more tourests.. both bangkok and amsterdam have many bars and restaurants that seem to do alot of business..

How do all these stores make money? The rent and the air conditioning must mandate that these stores move alot of merchandise, but i don't see it ..i'm wondering if the next financial crises centers around the retail sector going bust.. Thailand seems to have a habit of oversupplying and crashing..

Edited April 19, 2015 by pkspeaker

[wordchild]

i agree with your overall point ie there is quite a lot of risk right now for those businesses that service the Thai consumer. Your point about the high end merchandise being aimed at foreigners is, however, incorrect. Thais account for the vast majority of the sales of high end luxury goods in (Thai) malls. Foreign spending is important (very important in some malls eg Paragon/Gaysorn) but still someway behind the domestic spenders. Most luxury goods, sold in the high end malls, can be bought more cheaply in Paris, London or Hong Kong. Why would foreigners who either live or travel outside Thailand purchase such things here?

Edited April 19, 2015 by wordchild

[cooked]

The purpose of these malls? A place to walk around when you feel the need of some air conditioning. Why do you find up to a kilometre of road selling melons, and only melons? Or brooms and straw hats and only that? My son in law opened up a copy shop, now the beauty salon, 'restaurant' and shop that doesn't seem to sell anything at all have all bought copy machines. He does plastic laminating and says that one of the neighbours came to look at it. Etc. Copy cat economics.

I truly believe that these ridiculous stores, some of which sell stuff for three - four times the price you can buy it in Robinsons which in its turn is over priced, will be the first to collapse when the ridiculous bubble that is forming at present finally pops. Same thing in the provinces by the way.

[DogNo1]

Is the stop of the Emquartier Ploen Chit or Nana?

[robertthebruce]

Designer Anything, is cheaper in ''Europe or the States'', anything that i have seen , costs more, so no reason to buy in ''Thailand''..

saying that i bought a real nice ''Burberry fake wallet''... , that will do me...

[Robert24]

Just took a walk through the new Emquartier (or whatever).. it looks just like the Terminal 21 at the next bts stop, and 2 more bts stations there are what, 6 more of these huge malls? And on the outskirts of the city, there are more massive malls.. I see all these brand stores Victoria Secret, UNIQLD, etc. There is a big store that sells only ladies handbags.. but I rarely see anyone buying anything.. They all carry the same type thing, most Thai people don't buy this stuff(except for the super ruch), it seems most of this is directed at foreigners, who could just as easily buy these things in their own country. Then there are all these stores selling phones, do people really buy that many phones? My last phone I bought used and it lasted for 5 years..

In march I was the netherlands for the month, I went to the Hague and Amsterdam, both cities have like 1 of these luxury brand shopping centers , I think I saw 1 Apple store in each city and 2 Samsung/other cell phone stores, I didn't see any big electronics stores selling TVs etc but I know there is a big shopping center in the outskirts of Amsterdam and I only stayed in the tourest areas.. but still, Is Thailand's market for luxury items really so much bigger than a country like the netherlands which has a larger economy? maybe its because Thailand has a larger population and tourism, but the netherlands actually has a population of 17 million and even more tourests.. both bangkok and amsterdam have many bars and restaurants that seem to do alot of business..

How do all these stores make money? The rent and the air conditioning must mandate that these stores move alot of merchandise, but i don't see it ..i'm wondering if the next financial crises centers around the retail sector going bust.. Thailand seems to have a habit of oversupplying and crashing..

I agree that they all look similar and actually many shops are the same too. But they make a lot of money. You should compare Bangkok with Singapore, Hong Kong, Shanghai etc. and you will see similar malls as in Bangkok or actually a lot more and agree they all look similar and have similar shops. But they are highly profitable. You can look at CPN's profit in Thailand or some of the REITs in Singapore to see how well they do.

[khunJeroen]

Don't be fooled. The growing number of upper middle-class (they probably only shop late at night and weekends) and high number of foreign tourist from Asia drive this market. Many Chinese, HK, JP and S'poreans buy LVT, Gucci etc. Same for the growing number of luxury condo's and BMW etc that are sold each year.

[alant]

Don't be fooled. The growing number of upper middle-class (they probably only shop late at night and weekends) and high number of foreign tourist from Asia drive this market. Many Chinese, HK, JP and S'poreans buy LVT, Gucci etc. Same for the growing number of luxury condo's and BMW etc that are sold each year.

That must be where the Promenada in Chiang Mai is failing, it closes at 9pm so no late night shopping.

[metisdead]

Is the stop of the Emquartier Ploen Chit or Nana?

It's the station after Ploen Chit and before the Asoke station, Phrom Pong station.

[gjoo888]

Is the stop of the Emquartier Ploen Chit or Nana?

It's the station after Ploen Chit and before the Asoke station, Phrom Pong station.

You've got the station right (Phrom Phong), but Nana is the station between Ploenchit and Asok. Prom Phong is after after the Asok station in the Bearing direction.

[gbob]

Is the stop of the Emquartier Ploen Chit or Nana?

It's the station after Ploen Chit and before the Asoke station, Phrom Pong station.

The station name is correct. However, Phrom Pong is the next station after Asoke in the direction Bearing. The station after Ploen Chit and before Asoke station is Nana.

[ozyjon]

Yes the copy cat business set up, my ex in the vision

to get rich quick pestered me to buy a Xerox / Canon

photo copy machine to make money,, what she didn't

know was that my flatmate in Sydney was a sales rep

for Xerox and that i was fully trained in all those copy

machines, i tried with all my heart, to tell her that the

profit was in the service of the machines and selling

the toners and inks to the users, everything went

over her head, didn't understand a word i said, just

replied buy a Xerox / Canon
photo copy machine to make money,,

From the drunken ex hippie (aren't we all)

These shops will be the first to collapse when the ridiculous

bubble that is forming at present finally pops.

I travel a lot and when i arrive in Sydney i see more

shops closing and when i return, those shops are still closed

but others have closed as well, is it a sign i wonder, this is

happening in Europe -the continent as well.

Time will tell.

[1FinickyOne]

2 factors that I did not see others mention - - labor here is less expensive than in places like Amsterdam and when you have expensive items, if someone comes in and buys a couple of items, the sale can be quite lucrative. And quick. You might do nothing all day and one customer makes it a good day. It can easily be more profitable than owning a shop selling ice cream for 15 baht… even though they may have a small line at noon…

But yes, it always seems to me that there are so many people selling things - everywhere in Thailand. Even in a small country village, there are many people with little shops in front of or downstairs in their homes. They are hanging out at home anyway and if they make a couple hundred baht a day or more, it beats field work. Markets everywhere.

[seancbk]

Is the stop of the Emquartier Ploen Chit or Nana?

It's the station after Ploen Chit and before the Asoke station, Phrom Pong station.

I take it you've not been on the BTS much lately.

EMquartier is at Phrom Phong BTS station (correct).

Phrom Phong BTS is between Asoke and Thong Lo.

Fabulous mall btw, will save me a lot of time when I go to buy clothes as its much closer to where I live and has all the stores I buy clothes from (H&M, Zara Men, UniQlo to name a few)

[mikebell]

I agree with Kenk's post above. I never see ANYONE in these designer stores, except bored assistants. The mark-up on these designer labels must be so huge that one or two items sold will equate to daily wages/rental charges. I suspect even if I could afford to buy, I probably wouldn't!

[ToddinChonburi]

Yes the over kill of vendors, makes you wonder how do they pay the rent.

[blazes]

This is an interesting thread. I have often wondered how the brand new malls in Chiang Mai make enough money to stay in business beyond one year. The answer is: there's a steady little trickle of closures. The only entities that could possibly afford what must be sky-high rents are multinationals who can claim tax write-offs for non-performing stores. (Estee Lauder, Gucci etc.)

I notice that the people on this thread who claim that the Bkk stores are highly profitable do not, at all, offer figures to support their argument. It's all assertion and opinion.

I go regularly for a nice air-con cappuccino at a new mall and always watch watch watch to see who is entering the high-end stores around me. While I have never personally witnessed a Thai (or even a farang) entering a high-so store, I have to assume that they are there mainly for the purposes of window-shopping.

[neeray]

Overkill of vendors is everywhere, Canada (my country), USA ....... . As a businessman myself, I look in these stores with no patrons to speak of and wonder how they can pay the rent (plus associated overhead). But retailing is not rocket science. It's a simple game to get into. No doubt, many of these business owners/retailers mortgaged their home to the hilt to get started. And many will end up losing their home as a result.

[Baerboxer]

I agree with Kenk's post above. I never see ANYONE in these designer stores, except bored assistants. The mark-up on these designer labels must be so huge that one or two items sold will equate to daily wages/rental charges. I suspect even if I could afford to buy, I probably wouldn't!

Depends when you visit. Just before Songkran I went to Emporium and then Emquartier with a Burmese friend. She bought new luggage and some nice clothes which were at special prices. Just after Songkran I went to Paragon with wifey. Zara clothes for her and some new Delsey luggage - got 50% off the luggage and a very helpful and informative salesman (unlike most who are too busy texting or playing on their iPhones). Both places were busy when I visited. More Western foreigners in Paragon, lots of Chinese in Emporium.

Last time I was in Paragon there was a queue to get into LV. Mostly Thai and Chinese. I have friends from Hong Kong, Singapore and the Middle East and they all come to Bangkok to shop and / or for medical check ups and / or spa treatments. Hong Kong has now become a mass of designer shops too. .The Nathan road area near the Sheraton is totally different character now than when I worked there 12 years ago. They like London too for shopping for some reason.

Fashion Island, Future Park, and Central brand malls all seem full of Thais whenever I go. I'm always amazed by the sheer number of stunning well dressed young ladies out shopping on their own or in twos and threes. All Thai,

Shopping seems a national pastime here - and lots want the real deal designer goods and are happy to go into debt to get them.

Not surprised on the comments about Amsterdam - the Dutch are not known for their lavish spending or particular interest in designer fashion goods.

[wprime]

Basically malls like Paragon and Central World have been major successes, so other people think, hey we should do that too!

It's the same process in which 5 sausage shops open up next to an existing one, or the way 15 stands selling kites open up within a 100m section on a highway.

They assume if the market supports one, it must support 2, and so on.

[dotpoom]

i agree with your overall point ie there is quite a lot of risk right now for those businesses that service the Thai consumer. Your point about the high end merchandise being aimed at foreigners is, however, incorrect. Thais account for the vast majority of the sales of high end luxury goods in (Thai) malls. Foreign spending is important (very important in some malls eg Paragon/Gaysorn) but still someway behind the domestic spenders. Most luxury goods, sold in the high end malls, can be bought more cheaply in Paris, London or Hong Kong. Why would foreigners who either live or travel outside Thailand purchase such things here?

It's always been a puzzle to me how some shops in the likes of Central Festival can stay in business....I seldom if ever see people actually buying anything in them, it's hard enough to see a customer even browsing. My brother was over here from Europe for a short holiday and I brought him and his wife to show them this lovely shopping mall, she suggested he buy a pair of trainers (runners) they both went into the shop and I waited outside. When they came out they were both white with shock, the shoes were almost twice the price they would have been at home.

[realenglish1]

There is no question it is over build and over kill

Only so much money to spend and go around

Some malls will fail Give it time

[NoshowJones]

Is the stop of the Emquartier Ploen Chit or Nana?

It's the station after Ploen Chit and before the Asoke station, Phrom Pong station.

I take it you've not been on the BTS much lately.

EMquartier is at Phrom Phong BTS station (correct).

Phrom Phong BTS is between Asoke and Thong Lo.

Fabulous mall btw, will save me a lot of time when I go to buy clothes as its much closer to where I live and has all the stores I buy clothes from (H&M, Zara Men, UniQlo to name a few)

The last time I was in that place, I could not find my way back out. I had to keep asking people.

I believe the place has been refurbished now.

[meltingpot2015]

You've got the station right (Phrom Phong), but Nana is the station between Ploenchit and Asok. Prom Phong is after after the Asok station in the Bearing direction.

The station name is correct. However, Phrom Pong is the next station after Asoke in the direction Bearing. The station after Ploen Chit and before Asoke station is Nana.

SNAP!, double-take.

[HerbalEd]

A much bigger mystery for me is how do the many many tailor and optical shops in Thailand stay in business?

[mike324]

There are still some countries such as China (probably #1 in tourist arrivals) where all these stuff are more expensive n their own country. But you also underestimate the spending money of the average Thais who are trying to keep up with folks around them, many can't afford it but still buy and pay their credit card in installments. Thailand is one of the few countries were credit card companies allow you to pay up to 10months later interest free!

I do think there are too many malls on Sukhumvit road, not to mention another new one owned by Emporium group which will start building this year that is diagonal across from Emquartier, beside the park. You are right nobody really buy the high end brands, therefore Central Embassy was a total failure, but their business will improve a little once Park Hyatt opens above Embassy.

[Robert24]

There is no question it is over build and over kill

Only so much money to spend and go around

Some malls will fail Give it time

sure some malls with fail but a lot will make it. And malls are hugely popular here in Asia and Thailand still has potential for more malls to be built. CPN is still building new malls all over Thailand.

[Johnny S]

Always wondered what idiots shop in these hi-so Malls ... Everytime I pass one of them (Promenada incl.) I hope and Wonder when the owners have had enough of throwning their Money into these Black holes ...

[brewsterbudgen]

Emquartier has a great selection of restaurants. Last time I was there, virtually every one was packed. Mind you, the shops were empty! The local hi-sos love their malls and for the movies, restaurants and food courts I can handle them too (plus I work in one!).