Retail in Thailand: Key market research findings
- Projected growth in the e-commerce sector
- Grocery segment accounts for a majority of the market’s revenue
- Key vendors – Big C, Central Group, CP ALL, Global House, and Home Pro
Technavio’s market research analysts predict the Thailand retail market to grow at a CAGR of more than 6% between 2016 and 2020. Increasing urbanization, changing lifestyles, and demand for sophisticated products will be some of the factors driving growth in this market. The recent increase in consumer spending coupled with the growing acceptance of digitization is also expected to fuel growth in the Thailand retail market. Furthermore, with the rising adoption of smartphones and the increasing penetration of the Internet, the prospects for growth in the online retail market will have aaa positive outlook until the end of 2020.
The new market research report from Technavio presents a breakdown and analysis of the retail segments based on the product.
“The launch of 4G in Thailand is having a positive impact on the growth of the e-commerce sector. The e-commerce market in Thailand is expected to benefit immensely from the increasing internet penetration, increasing trust on online payment options, and faster and efficient delivery and return options during the forecast period. Computer, electronics, and appliances are the major product category in terms of retail sales by value followed by apparels and footwear, and furniture and home décor,” says Brijesh Kumar Choubey, Lead Analyst, Consumer & Retail, Technavio Research.
By 2020, the grocery segment will continue its dominance as the key revenue generator in the Thailand retail market with a market share of almost 85%. The grocery sector is largely driven by the growth of the modern retail sector. Increasing urbanization and changing consumer lifestyles are expected to play a pivotal role in the growth of the grocery market in Thailand. Even though hypermarkets offer attractive pricing, consumers are increasingly preferring supermarkets for the convenience factor and the availability of an extensive product range.
The key vendors in the Thailand retail market include Big C, Central Group, CP ALL, Global House, and Home Pro. Due to the presence of both international and local players operating across the country, the Thailand retail market appears to be highly competitive. Increasing competition and consumer demand will induce vendors to bring in innovations. The market is set to witness the entry of several new players, which will, in turn, intensify the level of competition among vendors in the coming years. Additionally, the market will also witness a number of M&As, wherein, major retail companies will acquire local vendors to gain a considerable share of the market.
A more detailed analysis is available in the Technavio report, Thailand Retail Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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