Thai retailers, shopping malls forecast to enjoy steady growth

[webfact]

Thai retailers, shopping malls forecast to enjoy steady growth

BANGKOK, 13 July 2016 (NNT) – The Thai Shopping Center Association has projected continuous expansion in the retail and shopping mall sector during the latter half of this year due to a rebound in consumer spending.

Mr Prasert Sriuranpong, committee member of the Thai Shopping Center Association, pointed out that the government’s economic stimulus measures have successfully shored up private consumption. The improved spending by consumers, coupled with lively tourism, will likely lend support to the growth of retailers and shopping malls from now till the end of the year.

Mr Prasert also noted that there is a possibility for Thailand to emerge as the hub for retail and shopping mall businesses, given that Thai entrepreneurs are considered to have high potential.

In this regard, the Thai Shopping Center Association is set to cooperate with the Thai Retailers Association in holding the RetailEX ASEAN 2016 from August 25-27 this year at IMPACT Mueang Thong Thani. The event will be a gathering place for operators of leading retail stores and supermarkets as well as manufacturing and sales agents, both from Thailand and overseas, to showcase their products and services.


-- NNT 2016-07-13

[Thian]

We need a mother of all Thai malls, a super big one with only big international stores.

Central departmentstore is more expensive then a similar mall in Tokyo. So more and more Thai will go shopping abroad i guess.

To get me in a mall it needs to have many foreign restaurants, buffets are the best.

[waldroj]

Yet another ubiquitous hub!

So, could the crystal balls be seeing a doubling of customers in these stores?

For many of them, that would be a more achievable target than the "steady growth" suggested here.

Most of the smaller ones currently appear to always have more staff than customers.

Current retail trade is probably so bad that these stores need to come together at IMPACT in a desperate attempt to lure customers.

[NongKhaiKid]

Such a positive forecast can only mean one thing, More Malls !

[Thian]

Such a positive forecast can only mean one thing, More Malls !

Yup and i heard the "hub"word again....

But Singapore has far more malls as BKK so they have a long way to go.

[Bluespunk]

"Mr Prasert also noted that there is a possibility for Thailand to emerge as the hub for retail and shopping mall businesses, given that Thai entrepreneurs are considered to have high potential."

Are they now? Well, well, well that's good to know.

On another point are non Thais allowed to own retail outlets in shopping malls or do they need the support and advice of these high potential entrepreneurs?

By law.

[Thian]

"Mr Prasert also noted that there is a possibility for Thailand to emerge as the hub for retail and shopping mall businesses, given that Thai entrepreneurs are considered to have high potential."

Are they now? Well, well, well that's good to know.

On another point are non Thais allowed to own retail outlets in shopping malls or do they need the support and advice of these high potential entrepreneurs?

By law.

Don't know who owns them but Isetan, Zen, Tokyu are foreign departmentstores.

[NongKhaiKid]

Such a positive forecast can only mean one thing, More Malls !

Yup and i heard the "hub"word again....

But Singapore has far more malls as BKK so they have a long way to go.

Hope you realise that your second sentence will probably speed up mall construction here !

[Thian]

Such a positive forecast can only mean one thing, More Malls !

Yup and i heard the "hub"word again....

But Singapore has far more malls as BKK so they have a long way to go.

Hope you realise that your second sentence will probably speed up mall construction here !

I can't wait for that! More malls, more competition, more choice and lower prices.

But a mall will never beat a nice citycentre where one can just wander around and visit malls/parks/shops etc. So Tokyo will always beat Thailand, whatever they build.

Bangkok needs malls with a theme, like a huge electronic mall or fashionmall or menmall. Also Chinatown should have a real China-mall, the old Siam is not even a real mall imo.

But after we do have those extra malls in BKK we still can't beat the nightlife of Singapore where the bars/restaurants are all along the canals. It's great to be in a open bar at night, just like in Europe. People sit on terraces or bridges and just relax and have a drink.

[ezzra]

Only the other day there was a big article of how the Thai public is drowning in household debts up to their

ears, and that the situation is getting worse and worse every month, and that come from the government

that usuall like to fudge figures painting them roses, so what we read today is at best a wishful scenario

and nothing more....

[Brer Fox]

Steady growth in malls to satisfy the addiction to ice-creams, milk shakes, sodi pops, junk food and pharmaceuticals.

[mike324]

Such a positive forecast can only mean one thing, More Malls !

Yup and i heard the "hub"word again....

But Singapore has far more malls as BKK so they have a long way to go.

Hope you realise that your second sentence will probably speed up mall construction here !

I can't wait for that! More malls, more competition, more choice and lower prices.

But a mall will never beat a nice citycentre where one can just wander around and visit malls/parks/shops etc. So Tokyo will always beat Thailand, whatever they build.

Bangkok needs malls with a theme, like a huge electronic mall or fashionmall or menmall. Also Chinatown should have a real China-mall, the old Siam is not even a real mall imo.

But after we do have those extra malls in BKK we still can't beat the nightlife of Singapore where the bars/restaurants are all along the canals. It's great to be in a open bar at night, just like in Europe. People sit on terraces or bridges and just relax and have a drink.

Thailand is already similar to singapore...the problem is that the city is poorly regulated and planned...the malls in singapore are really no different than the ones in Thailand - you pretty much find the same international stores. Thailand has the leg up with small indie stores that offers unique clothing and accessories.

Although nightlife is still not comparable, but it depends what you are after, I have singapore and malaysian friends who love the Thai night life... there are bars and restaurants all over bkk, many open bars as well especially rooftop bars in bkk. Food wise, Singapore is superior when it comes to general western food.

The problem with thailands open bar is that it look out to the city where its an eyesore, poorly maintained streets and building...hence there is no good vibe for sitting outside on top of that bad pollution from poorly maintained cars

I agree, if Thailand can make their citycenters squeaky clean, organize, and simply walkable it would add a lot of charm

[mike324]

"Mr Prasert also noted that there is a possibility for Thailand to emerge as the hub for retail and shopping mall businesses, given that Thai entrepreneurs are considered to have high potential."

Are they now? Well, well, well that's good to know.

On another point are non Thais allowed to own retail outlets in shopping malls or do they need the support and advice of these high potential entrepreneurs?

By law.

Majority of the shopping malls you rent the space (eg. Cental, Emporium, Siam Center, etc) The ones that you can actually own the space are not many ,mostly not in the city center. There are some where you lease the space for say 30 years, and you can sell you lease to others.

If you set up a company you can own anything.

[Bluespunk]

"Mr Prasert also noted that there is a possibility for Thailand to emerge as the hub for retail and shopping mall businesses, given that Thai entrepreneurs are considered to have high potential."

Are they now? Well, well, well that's good to know.

On another point are non Thais allowed to own retail outlets in shopping malls or do they need the support and advice of these high potential entrepreneurs?

By law.

Majority of the shopping malls you rent the space (eg. Cental, Emporium, Siam Center, etc) The ones that you can actually own the space are not many ,mostly not in the city center. There are some where you lease the space for say 30 years, and you can sell you lease to others.

If you set up a company you can own anything.

Without a Thai "partner"?

Though I am led to believe there are different rules for Americans setting up a company here.

Edited July 13, 2016 by Bluespunk

[mesterm]

It's great to be in a open bar at night, just like in Europe. People sit on terraces or bridges and just relax and have a drink.

555 in Thailand?? Nice to dream

For now, enjoy the exhaust fumes sitting next to the asphalt!

Edited July 13, 2016 by mesterm

[mike324]

"Mr Prasert also noted that there is a possibility for Thailand to emerge as the hub for retail and shopping mall businesses, given that Thai entrepreneurs are considered to have high potential."

Are they now? Well, well, well that's good to know.

On another point are non Thais allowed to own retail outlets in shopping malls or do they need the support and advice of these high potential entrepreneurs?

By law.

Majority of the shopping malls you rent the space (eg. Cental, Emporium, Siam Center, etc) The ones that you can actually own the space are not many ,mostly not in the city center. There are some where you lease the space for say 30 years, and you can sell you lease to others.

If you set up a company you can own anything.

Without a Thai "partner"?

Though I am led to believe there are different rules for Americans setting up a company here.

Yes I did read Americans can set up a company based on the US-Thailand Treaty of Amity, where you can own majority of the company without needing a Thai partner. But I also read this treaty is expired, but applications under this treaty can still fall through as its not strictly enforced. I'm no expert here.....

[mike324]

"Mr Prasert also noted that there is a possibility for Thailand to emerge as the hub for retail and shopping mall businesses, given that Thai entrepreneurs are considered to have high potential."

Are they now? Well, well, well that's good to know.

On another point are non Thais allowed to own retail outlets in shopping malls or do they need the support and advice of these high potential entrepreneurs?

By law.

Don't know who owns them but Isetan, Zen, Tokyu are foreign departmentstores.

Zen is actually owned by Central Group.

Isetan is japanese.

New japanese mall called Takashimaya will be run by Emporium group, its going to be open at the ICON Siam on the river front.

Thailand can emerge as a shopping hub if they cut the luxury tax, it would make bangkoka shopping heaven for those seeking name brand stuff. At the moment, most Asians go to Singapore and HK to shop for luxury goods.

[ratcatcher]

It is vital that we have more high quality malls in order that the large numbers of already deliriously happy and wealthy expats in Bangkok, Pattaya and Phuket can achieve a state of euphoria.

[GAZZPA]

I am always confused by the messages coming from Thai authorities. All I can see is economic misery and countless stories of investors staying away due to the political instability in the country. Also, the competition from neighbouring countries is really hotting hot with the Philippines and Vietnam becoming particular favourites for overtaking Thailand.

I wish Thailand would stop with the nonsense and address the real issues rather then pretend everything is on track, it certainly does not look like it is. But this is not just my personal feeling,,

Below is the Thai GDP, I got it from Trading economics and the World bank group, they seem to be accurate on other countries GDP (by that i mean inline with other countries own numbers) so I think it is reasonable to assume it's accuracy and also it reflects the "feeling" and sentiment in the global markets about Thailand right now. The number os forecast at 375 for 2016, so another fall. Meanwhile the Philippines is forecast at 310 for 2016.. Considering that Thailand had twice the gap of the Philippines just 6 years ago and it is planning on 7% growth every year should say something to someone.

I hope that Thailand gets back on track after the new Government is elected (whenever that will be) but for now with huge consumer debt and falling GDP I don't see articles telling everyone about new shopping malls and high expectation of Thai entrepreneurs is really helping.

[GAZZPA]

"Mr Prasert also noted that there is a possibility for Thailand to emerge as the hub for retail and shopping mall businesses, given that Thai entrepreneurs are considered to have high potential."

Are they now? Well, well, well that's good to know.

On another point are non Thais allowed to own retail outlets in shopping malls or do they need the support and advice of these high potential entrepreneurs?

By law.

Don't know who owns them but Isetan, Zen, Tokyu are foreign departmentstores.

Zen is actually owned by Central Group.

Isetan is japanese.

New japanese mall called Takashimaya will be run by Emporium group, its going to be open at the ICON Siam on the river front.

Thailand can emerge as a shopping hub if they cut the luxury tax, it would make bangkoka shopping heaven for those seeking name brand stuff. At the moment, most Asians go to Singapore and HK to shop for luxury goods.

I read recently that rich Asians are actually going to Europe to buy the European designer brands as they are considerably cheaper there. China in particular has had a big downturn in luxury brand shopping malls, and i cannot help but notice that Central world in Bangkok looks pretty empty when I have been through there.

The problem with Thailand is there is not enough "middle" market shopping malls. Ok, there is MBK but not really much else, all the other seem to be stuffed with expensive designer brand names that are pretty much a no go for most people in Bangkok.

The more developed Western markets have a small "cheaper" range of shopping malls, a huge range of what I would call "normal" or mid range shopping malls and also a small number of high end malls.

I think if they really want to build a new shopping mall they should make it a normal mall for normal income people and skip the Louis Vuitton shops, there are enough already.

Just my opinion,, nothing more.

[Redline]

There is no growth. Where is the proof?

Mr Prasert also noted that there is a possibility for Thailand to emerge as the hub for retail and shopping mall businesses, given that Thai entrepreneurs are considered to have high potential.

Hub bub

[elgordo38]

Only the other day there was a big article of how the Thai public is drowning in household debts up to their

ears, and that the situation is getting worse and worse every month, and that come from the government

that usuall like to fudge figures painting them roses, so what we read today is at best a wishful scenario

and nothing more....

These robber barons of big business will continuously tell you that things are great till one day you wake up and find they are not. Its called reality it comes after the fantasy stage. Edited July 13, 2016 by elgordo38

[GAZZPA]

Only the other day there was a big article of how the Thai public is drowning in household debts up to their

ears, and that the situation is getting worse and worse every month, and that come from the government

that usuall like to fudge figures painting them roses, so what we read today is at best a wishful scenario

and nothing more....

I absolutely believe that to be true. Every month I present the company numbers to the bank, a big Thai bank that you all know well.

They told me 2 weeks ago that Thai people are in very serious debt. The habit of Thai people is buy on credit but don't worry about the repayments, i know that sounds strange. the example they gave me is the the average Thai earns about 20k a month (in Bangkok and major cities) and yet they spend 30k on a new smart phone. Of course this does not add up, nobody can do that. So what they do is buy on credit.

Then their salary pays the rent, bills, food and smartphone,, nothing more. Absolutely crazy but according to the bank very common theme so i am inclined to believe them. They said it has gotten to the point where there is not more money to drive the economy from domestic consumption and the banks themselves are becoming more cautious about lending practices.

but, as you say new malls going up, everything must be ok.

[seancbk]

We need a mother of all Thai malls, a super big one with only big international stores.

Central departmentstore is more expensive then a similar mall in Tokyo. So more and more Thai will go shopping abroad i guess.

To get me in a mall it needs to have many foreign restaurants, buffets are the best.

I have that near me, it's called Mega Bangna.

If I could I'd live next door.

[gyrosman]

Where do these people pull these figures from? No rain, no rice, lost tourist unless they include 7-11's as a growth shopping mall for Chinese tourist.

[Thian]

"Mr Prasert also noted that there is a possibility for Thailand to emerge as the hub for retail and shopping mall businesses, given that Thai entrepreneurs are considered to have high potential."

Are they now? Well, well, well that's good to know.

On another point are non Thais allowed to own retail outlets in shopping malls or do they need the support and advice of these high potential entrepreneurs?

By law.

Don't know who owns them but Isetan, Zen, Tokyu are foreign departmentstores.

Zen is actually owned by Central Group.

Isetan is japanese.

New japanese mall called Takashimaya will be run by Emporium group, its going to be open at the ICON Siam on the river front.

Thailand can emerge as a shopping hub if they cut the luxury tax, it would make bangkoka shopping heaven for those seeking name brand stuff. At the moment, most Asians go to Singapore and HK to shop for luxury goods.

Great! Takashimaya is similar to Isetan, very nice shop, i visited them in Singapore and Tokyo. I hope the riverboatexpress can bring me there soon.

Serious the departmentstores in Tokyo are cheaper then Central in BKK, no wonder all our thai friends love to go abroad and shop a lot there. The importtax and high thai baht is a serious problem.

BKK is allready the heaven for brandname stuff but then the fake version. Where else can you buy new Nike sneakers from which the sole falls off after 2 weeks? Have a look in a shoestore in Tokyo and you'll see loads of Thai fitting shoe's.

In HK i didn't see any big malls, no idea where they are. But all the other metropoles mentioned are great for shopping, much cleaner and better organised then BKK. Best of all is they have good sidewalks. BKK only has some malls but if you want to have a nice walk around town it's not possible.

[mike324]

I read recently that rich Asians are actually going to Europe to buy the European designer brands as they are considerably cheaper there. China in particular has had a big downturn in luxury brand shopping malls, and i cannot help but notice that Central world in Bangkok looks pretty empty when I have been through there.

The problem with Thailand is there is not enough "middle" market shopping malls. Ok, there is MBK but not really much else, all the other seem to be stuffed with expensive designer brand names that are pretty much a no go for most people in Bangkok.

The more developed Western markets have a small "cheaper" range of shopping malls, a huge range of what I would call "normal" or mid range shopping malls and also a small number of high end malls.

I think if they really want to build a new shopping mall they should make it a normal mall for normal income people and skip the Louis Vuitton shops, there are enough already.

Just my opinion,, nothing more.

Yes a lot of rich Asians go to Europe to buy. If you go to luxury stores there, its full of chinese shoppers, and pretty much every luxury store have chinese speakers. But for many who don't want to spend too much on air ticket and hotel, they will go shop in HK and Singapore ( no tax and their markup are normally less than 10% compare to Europe). I don't think Central World is empty, its still pretty full with mostly tourist on weekdays, if you are talking about ZEN and Isetan side yes its pretty empty.

Not sure what you consider as middle market - but I think brands like Zara, H&M are consider as middle market brands. Those are the brands most people buy now as it offers styles that are similar to expensive brands. In central department stores, the ones that they run themselves, There are many middle market brands as well, they are just not popular. You will find it interesting that Zara and H&M has taken a big share of the clothing market in Thailand.

The truth is people go to the malls to eat nowadays, so food selection is more important than shopping for clothes. Food and Beverage for malls is growing market, while luxury goods and clothes is in downward trend.

[mike324]

Great! Takashimaya is similar to Isetan, very nice shop, i visited them in Singapore and Tokyo. I hope the riverboatexpress can bring me there soon.

Serious the departmentstores in Tokyo are cheaper then Central in BKK, no wonder all our thai friends love to go abroad and shop a lot there. The importtax and high thai baht is a serious problem.

BKK is allready the heaven for brandname stuff but then the fake version. Where else can you buy new Nike sneakers from which the sole falls off after 2 weeks? Have a look in a shoestore in Tokyo and you'll see loads of Thai fitting shoe's.

In HK i didn't see any big malls, no idea where they are. But all the other metropoles mentioned are great for shopping, much cleaner and better organised then BKK. Best of all is they have good sidewalks. BKK only has some malls but if you want to have a nice walk around town it's not possible.

They will be building a BTS line that runs to Takashimaya, you change trains at Krungthonburi Station. Not sure if they will have a riverboat, did not read about that, I don't think they will since they have the BTS line.

I find that even though import tax is high, there are something that cost similar to Japan, many things are expensive because of high markup by the sellers as well, not just import tax.

Shopping in Japan is good for Asians, not just the shoe fits, the clothes there are more suited to the Asian frame as well. My friends father always buy his suits and shirts in Tokyo.

Due to Bangkoks poor urban planning the entire city is not walk-able. That is one of the main reasons why Bangkok have big malls instead of individual shops like in Europe and HK.

Having shop all over the world, I have to say big malls are not bad, its a benefit if you live here. You can find everything in one place and get everything done, especially if you have a family. So its a real plus if you have a family, you can buy groceries, get all the baby / kids stuff, watch a movie, buy / pay for phone bills, get your shoe/bag fix...the list goes on

I've lived in Europe and USA, you have to go to each individual store to just get one thing done, and you waste a lot of time. Many times product selection is not good, especially in Europe - shops always close early 7-8pm and close on weekends too!