Bolstered by growing demand for luxury items during the pandemic, Siam Piwat has doubled the sales space for luxury goods at Siam Paragon.
Mayuree Chaipromprasith, president of corporate affairs and communications at Siam Piwat, said the pandemic shutdown led to higher demand for luxury goods.
As a result, the average revenue from international luxury brands available at Siam Paragon in 2022 increased by 50% year-on-year and exceeded the pre-crisis level in 2019 by more than 200%, she said.
"2022 was a good year for the luxury goods business in Thailand. The country's status as a tourist destination gives it immense potential in the luxury market," said Mrs Mayuree.
"Luxury brands prioritise Thailand as a key target in Asia for launching special concept stores or unveiling their latest collections. For the luxury market, Thailand is second to none in terms of product variety and approach to consumers."
According to the Tourism Authority of Thailand, the number of foreign arrivals exceeded 10 million in the first five months of this year, and is expected to reach 25 million by year-end.
"The influx of tourists has transformed the landscape of Thailand's luxury market for years. Sales of several renowned brands in Thailand have become top sellers worldwide. Consequently, Thailand has seen an increase in limited edition and rare items available in local shops in recent years. Top executives from international luxury brands have also visited Thailand in the past few months to assess the market environment and explore opportunities," she said.
With the growing demand for luxury items, numerous international brands are eagerly awaiting their debut in the Thai market. To capitalise on this trend, Siam Piwat has decided to renovate Siam Paragon and double the sales space dedicated to luxury items.
The renovation is expected to be completed next year, with two floors, M and the first floor, showcasing luxury items ranging from fashion and lifestyle to home categories.
"We anticipate around 20 new international brands will debut at Siam Paragon next year," said Mrs Mayuree.
Siam Piwat also wants to continue to expand its ecosystem by collaborating with potential partners in diverse industries to develop business opportunities and sustainable growth models, aligning with the vision of "Rise Above the Ocean", she said.
"In today's business landscape, there is a shift away from adhering strictly to traditional industry norms and conventions. We believe that collaboration paves the way for limitless opportunities to expand the business beyond borders," said Mrs Mayuree.
"It empowers us to forge innovative paths in business that create a distinct competitive advantage. By harnessing the unique strengths of each organisation involved, we can unlock the full potential of the business."
She said the collaborative approach enables the company to enhance the pace of marketing activities with the ability to swiftly adapt and respond to market changes. This allows the organisation to achieve its goals in a more efficient manner.
In addition, collaborative efforts open up new avenues for income generation, experience incremental traffic and expand customer base, said Mrs Mayuree.
Siam Piwat has formed partnerships with over 50 organisations spanning 13 industries.
