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Tag: central group

  • Thai retail developer Central Pattana to rejuvenate Central World

    Thai retail developer Central Pattana to rejuvenate Central World

    Thai shopping centre owner Central Pattana says it is revitalising its premium malls to “pioneer future trends of retail and tackle the digital era”.

    Under a “five-year vision” it calls ‘Co-creating Center for Life” – a name which appears to have lost its actual meaning in translation from Thai – it will invest US$3.1 billion (100 billion baht) on five new and existing centres in Thailand and abroad. They are CentralWorld in downtown Bangkok, Central Phuket, Central i-City near Kuala Lumpur in Malaysia, CentralPlaza Ayutthaya and Central Village.

    Preecha Ekkunagul, president and CEO of CPN said the only way to survive In the era of digital disruption currently happening around the world is to adapt.

    “CPN sees this change as a challenge and opportunity that will allow us to create a new chapter of retail industry again, similar to what we have done over the past 38 years. Our new vision for the next five years is to … make CPN’s shopping centers destinations for all, where everyone can live life. The important pieces of the jigsaw are all our business partners and tenants that will co-create these new things for business success and sustainable growth.”

    The renovation of CentralWorld will be launched in November 2018.

    Central Phuket, which will open in September, mixes leisure lifestyles with world-class attractions: ‘Tribhum’ – the Mystery of Three Worlds in a 3D-walkthrough theme park – and Aquaria, which is claims will be the largest aquarium in Thailand.

    CentralPlaza Ayutthaya is a new lifestyle destination in the world-heritage city, which was once Thailand’s capital and is a popular tourist destination. That will open in December next year.

    Central Pattana describes Central Village as “the first international retail outlet in Thailand”.

    Co-creating life

    Meanwhile, the company has described its vision ‘Co-Create Center of Life’ as a blend of three strategies:

    • Create Destination Concepts: “Develop destinations for all customers by lifestyle and preferences and also categorise products and services based on lifestyles.”
    • Create Digital Platforms: “Offer seamless experience by delivering the real-time personalised offers, enhancing the online experience to conveniently and quickly connect customers’ mobile devices to services in shopping centres and integrating market platforms by teaming with Central JD to add a sales channel that is more seamless.”
    • Create Partnerships with business partners such as I-Berhad “to create the I-City ultra-metropolis,” and co-operating with Ikea to create the first in the world of a new store format at one of its largest malls in Bangkok.

    Central Pattana, part of the huge retail and FMCG conglomerate Central Group, currently has 32 shopping centers in Thailand.

  • JD.com ready to roll out Thai domain

    JD.com ready to roll out Thai domain

    A JV between JD and Thailand’s Central Group, Central JD Commerce will launch online marketplace www.jd.co.th in August.

    A soft launch is scheduled within the next few weeks.

    “Thailand is our second-biggest market in Southeast Asia following Indonesia, with Vietnam in third place,” says JD corporate VP Gloria Li.

    She says Southeast Asia became part of JD’s overseas expansion strategy two years ago. “We will bring our technology expertise and transfers to local teams, building an innovative retail industry.”
    Li says Thailand is an attractive market because of its preference for high-quality products and the rising number of middle-income consumers.

    A partnership with Central Group will enhance the customer experience for online shopping and logistics, as well as warehouse and delivery capabilities.

    The marketplace will provide goods from qualified merchants, most of whom are brand owners and small- and medium-sized enterprises.

    Li says the JV will export Thai products where the company has a footprint, such as China and Russia.

    “Our big-data analytics technology will provide customers insights into products for which there is high demand, helping them run promotions for targeted customers,” says Li. The return on investment with such marketing campaigns can be measured.

    Globally, JD has 301 million customers, with 82 per cent of its orders made via mobile. It is the largest retailer in China with revenue of US$55.7 billion last year.

  • Central group Thailand expanding property portfolio plan

    Central group Thailand expanding property portfolio plan

    Thailand’s Central Group plans to invest more than THB200 billion (US$6.3 billion) over the next five years on expanding its retail and hotel properties in Thailand and abroad.

    It is especially targeting Vietnam, where it expects its retail business to grow by four times over the period. The group aims for total revenue to reach THB397.3 billion this year, up 14 per cent from last year.

    CEO Tos Chirathivat says the group is studying designs and concepts for two mixed-use commercial projects in Bangkok. A site on Rama IV Road will be developed under a strategic partnership with Dusit Thani and a site in Ploenchit Road will be undertaken in partnership with Hongkong Land. The design process for the projects will take about two years to be fully completed. The mixed-use projects will require investment of about THB25 billion each.

    Tos says Central Group is committed to maintaining its investment at between THB30 billion and THB40 billion every year for the expansion of its retail and hotel properties in Thailand and potential markets abroad, especially in Vietnam and Europe.

    The group will this year invest THB47.5 billion in business expansion both at home and overseas, which is 27.8 per cent more than last year. This excludes the possible acquisition of e-economy businesses.

    Tos says the group is focusing on initiating online platforms so it can transform into a tech company.

    Main focus

    For overseas expansion, however, Vietnam is the group’s main focus. He says Central Group has grown there by an average of 340 per cent over the past five years. It is the largest foreign retailer in the country, with five core business units: 31 malls (Big C), 59 food stores (Big C, Lanchi Mart), 49 fashion stores (Delala, Marks & Spencer, Robins, Supersports), 79 stores for construction materials, home decoration and electrical appliances (including B2S, PowerMall and Nguyen Kim), and three online platforms (B2S.com.vn, NguyenKim.yn, Robins.vn).ins

    “Our penetration in Vietnam is now more than 217 stores with more than 700,000sqm in combined retail space in 37 provinces. By 2022, we expect to have more than 753 stores, and will occupy 2.5 million square metres in 57 provinces in Vietnam,” says Tos.

    The sales contribution from Vietnam would increase significantly from 13 per cent now to about 20 per cent over that period, he says. The company has 17,000-plus employees in Vietnam, serving more than 175,000 customers a day.

    In Thailand, he says the group will officially open its Tops Plaza in Phayao Province this quarter, followed by the relaunch of its CentralWorld in Bangkok in the second quarter. The group will also open the Robinson Lifestyle complex at Amata Chon Buri, Tops Plaza in Sing Buri, Central Phuket 2 and the Triphum theme park in Phuket.

    Other openings include residences and suites in Qatar, as well as Tops Plaza Amphur Phon, Khon Kaen and Pattalung, Zen Pathong in Phuket, Robinson Lifestyle in Chaiyaphum, and I-City Mall, the group’s first overseas mall, in Malaysia.

    An extra 459 stores will be opened in Thailand and Vietnam this year.

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  • Thailand Central Group to pursue online growth

    Thailand Central Group to pursue online growth

    The company with the biggest grip on Thailand’s brick-and-mortar retail market is expecting a partnership with China’s JD.com Inc. to pursue online growth.

    Central Group, which controls Thailand’s biggest operator of shopping malls and department stores, expects online sales to account for as much as 15 percent of its revenue in five years, from 2 percent now. The partnership with JD will help it compete in South East Asia’s booming e-commerce market and also open up businesses opportunities in China, Chief Executive Officer Tos Chirathivat said in an interview.

    With an empire that also includes hotels, supermarkets and restaurants, Central Group is counting on online growth to help drive sales. The company first announced its $500 million joint venture with JD in September 2017, teaming up with China’s second-largest e-commerce operator. Tos estimates that online retail in Thailand could rise fivefold to 10 percent of the market as the country of nearly 70 million develops and access to the web spreads through smartphones.

    “We obviously want to be the leading player in the 10 percent so it doesn’t really matter what kind of percent of the group it is,” Tos said in the Jan. 3 interview at his Bangkok office. “The important thing is to be the leader in the market itself.”

    Central Group and JD are competing in an increasingly crowded market, with Alibaba Group Holding Ltd. expanding in South East Asia through Lazada while Amazon.com Inc. kicked off with a beachhead in Singapore last year.

    Southeast Asia is home to more than 600 million people and the region’s internet economy, which includes e-commerce, online travel and ride-hailing, may grow fourfold by 2025 from an estimate of $50 billion in 2017, according to a joint research report by Google and Temasek Holdings Pte.

    While Central Group is a privately-held investment arm of the Chirathivat family, the company controls a number of publicly traded businesses. Central Pattana Pcl is a mall developer, Central Plaza Hotel Pcl operates resorts and restaurants, Robinson Pcl has a chain of department stores and COL Pcl does office supplies.

    All four gained in 2017, with Central Pattana surging 50 percent in 2017, Central Plaza jumping 47 percent and COL more than doubling, all outperforming Thailand’s benchmark SET Index.

    Outside the country, Central Group owns Italian luxury department store La Rinascente, Danish retailer Illum and in 2016 acquired the Big C hypermarket chain in Vietnam.

    Central Group is targeting annual revenue growth of 13 percent in 2018 based on the company’s five-year strategy plan, said Tos. That number may be higher with mergers and acquisitions, and the company could consider deals in the billions of dollars if the opportunity is right, he said.

    Local sentiment is helping the company, with consumer spending in Thailand picking up after the October cremation of late King Bhumibol Adulyadej ended the nation’s yearlong mourning period.

    “If the trend continues like this then this year should be good,” said Tos.

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  • JD.com surprises with first profitable quarter

    JD.com surprises with first profitable quarter

    JD.com profit soared 50 per cent after a 39 per cent increase in sales during the Chinese online retailer’s latest quarter.

    Its unaudited results for the three months to the end of September show revenue of RMB83.7 billion (US$12.6 billion), with a record 50.3 per cent surge in gross profit to RMB13 billion. Non-GAAP gross profit was RMB12.8 billion, up 51.9 per cent.

    Active customer accounts increased by 34 per cent to 266.3 million in the 12 months to September 30.

    Chairman/CEO Richard Lio says the company is building robust product content and enhancing user engagement with innovative tools that enable brands to launch highly targeted online marketing programs.

    “The scale economies of our model are becoming clearer with every quarter,” says CFO Sidney Huang. “Looking ahead, we will continue to prioritise investments in technology and leading R&D talent as we execute on our vision to revolutionise China’s retail industry.”

    While releasing its third-quarter figures, JD.com also listed its latest business developments…

    In October, JD and Tencent expanded their partnership with the launch of a marketing initiative that integrates insights on consumer behaviour from Tencent’s social-media platforms with online and offline shopping data from JD and its brand partners. As well as enabling more precise target marketing, the move benefits consumers by offering them wider access to sales promotions and preferred discounts.

    Strategic partnerships

    During the past three months, JD.com also formed strategic partnerships with Baidu, iQIYI, NetEase, Sogou and Qihoo 360 with their big-data resources, massive user bases and AI algorithm technologies.

    JD also continued to strengthen its position among top-tier international brands, expanding its partnership with high-fashion brand Armani with the opening of official online stores for Armani Exchange and Emporio Armani.

    JD Worldwide also launched flagship stores for such companies as Reckitt Benckiser, Spectrum Brands and Tiger, while its new Toplife platform attracted marquee brands like Dyson, La Perla, Rimowa (LVMH) and Trussardi.

    During the quarter, JD Logistics test-launched an unmanned sorting centre, the first of its kind in the logistics industry. JD also signed agreements to lay the groundwork for the rollout of China’s largest drone network.

    In September, JD Logistics expanded its environmentally friendly logistics and packaging campaign, working with brands including  Johnson & Johnson, Kimberly-Clark, Lego, L’Oreal, P&G, Nestle, Unilever, Watsons and Wrigley. The aim is to minimise environmental impact by cutting back on packaging materials.

    Customer demand

    JD also enhanced its fresh product offerings during the quarter to meet customer demand. In July, it launched the Canadian Fresh Food Pavilion, the first country pavilion for fresh products on the JD.com platform. Live lobsters from Canada can now be delivered to customers’ doorsteps in China in as little as 48 hours. During JD’s Super Canadian Day, 140,000 lobsters were sold within 24 hours.

    In September, JD.com, JD Finance, Central Group and Provident Capital announced agreements to establish two JVs in Thailand covering e-commerce and fintech services, with an aggregate investment of $500 million. JD.com is providing its expertise in technology, e-commerce and logistics while Central Group is drawing on its retail store network, brand and merchant relationships, and retail behaviour insights from its loyalty program.

    In October, JD and Sam’s Club launched a promotion offering customers discounted bundled memberships for Sam’s Club and the JD Plus paid-for membership service.

    By the end of October, JD.com JV New Dada had partnered with 146 Walmart stores and 301 Yonghui stores, as well as many other supermarkets and grocery stores, to provide online fresh grocery shopping with one-hour home delivery.

    At the end of September, JD.com had 405 warehouses and provided scheduled delivery services in 250 Chinese cities. It had about 160,000 merchants on its online marketplace, and 137,975 full-time employees.

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  • Central Group buying Dean & Deluca rights outside US

    Central Group buying Dean & Deluca rights outside US

    Thailand’s Central Group is set to acquire the Dean & Deluca chain of deli-cafes outside the US from Thai luxury property developer Pace Development for US$50 million.

    The deal is in the due diligence process, says Pace, which acquired the chain through its subsidiary Pace Food Retail for $140 million in 2014. Dean & Deluca was founded in the US in 1977.

    Under the agreement, the Thai retail giant will be licensed to run and expand the business outside the US while Pace retains ownership of the brand, runs the chain in the US and owns the right to produce and distribute consumer products under the Dean & Deluca trademark.

    Pace CEO Sorapoj Techakraisri says Central Group has the financial resources, expertise and knowledge to handle the day-to-day business of the stores, logistics and licensee relationships.

    “Having Central as a partner will give Dean & Deluca healthy growth globally,” he says.

    Pace, which develops luxury residential properties, has reported operating losses for five consecutive quarters, reaching THB1.7 billion ($50.9 million) last quarter.

    Currently, the company is developing four projects worth THB34 billion in total, including the Ritz-Carlton Residences Bangkok.

    The original Dean & Deluca was an iconic delicatessen in New York which continues to trade to this day. In Thailand, Pace converted the concept into more of a cafe business, before expanding outside Thailand, including in the Middle East, Tokyo, Seoul, Singapore and the Philippines. It was pursuing an aggressive expansion strategy in Asia.

  • Central Group launches luxury cross-border shopping

    Central Group launches luxury cross-border shopping

    Conglomerate Central Group has taken a step toward an omnichannel strategy by launching a cross-border e-commerce luxury brand experience it claims is a world first.

    It has introduced access to its luxury-brand websites through messaging app WhatsApp as part of its vision of integrating online and offline shopping channels, says Central Group chairman/CEO Tos Chirathivat.

    “This move is calculated to serve the lifestyles of Central Group’s new customers by providing seamless integration of online and offline shopping channels,” he says. “That is the vision of the group moving forward.”

    Central Group is putting together a network of global luxury department stores across eight cities, including locations in Italy, Spain, Denmark and Germany, as well as Bangkok’s Central Chidlom and Central Embassy.

    It offers a digital magazine and e-newsletter through the website AuxVillesDuMonde.com, provides information fashion, food and culture in the eight cities. The website supports eight languages and also has a mobile app for Android and iOS.

    Users can add luxury department stores in WhatsApp, check product availability through live chat and make purchases through online payment options. Users can then pick up products at the store or have them shipped to their home.

    Central Department Store Group CEO Yuwadee Chirathivat says the company has spent €500,000 (THB19.8 million/US$595,000) on the website.

    “Cross-border shopping at nine stores in eight global cities is a new retail phenomenon,” she says. “Through the WhatsApp live-chat option, Thai shoppers will be able to order products from Europe and have them shipped in two to five days.”

    Shoppers have to pay import tax depending on the country of origin of their purchases.

    Central Department Store Group expects revenue from overseas stores to climb by 40 per cent this year, with revenue from abroad representing more than 20 per cent of Central Department Store’s THB130 billion (US$3.9 billion) revenue.

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  • Central Embassy Open House opens

    Central Embassy Open House opens

    Bangkok luxury mall Central Embassy has unveiled a new space, Open House, where customers can eat, work, study or just relax – even take a nap.

    Central Embassy Open House 1

    Covering the entire top floor, Central Embassy Open House offers 7000 sqm of open-concept “co-living space” beneath high ceilings, with glass panels all around offering city views.

    Central Embassy Open House 6

    As well as a “co-working space”, Open House offers a restaurant, lounge, bar, bookshop, art gallery, design shop and children’s playground, nestled against the Embassy Diplomat Screens cinema.

    Central Embassy Open House 5

    “It took almost two years to complete this project,” says Central Embassy MD Barom Bhicharnchitr. “Accessible luxury is the key, but luxury is not about price – it’s mostly about quality of life.”

    Central Embassy Open House 2

    Central Group launched the THB18-billion (US$523.1 million) Embassy in 2014 on part of the former British Embassy site and Wireless and Ploenchit Roads. Its curving 200m facade advertises such brands as Gucci, Prada and Ralph Lauren, while ticket prices in its VIP cinema top THB1000.

    Central Embassy Open House 3

  • Thailand’s Central Group set to build mall in Cambodia

    Thailand’s Central Group set to build mall in Cambodia

    Thai ambassador to Cambodia Nuttavudh Photisaro says Central representatives have already studied the proposed site, not yet revealed publicly.

    “By investing in a shopping mall, they hope the trade volume between the two countries will increase,” says Nuttavudh.

    CBRE Cambodia associate director Ann Sothida says shopping malls still have a chance to grow in Cambodia because the market has increased purchasing power and has only a limited number of shopping malls of international standard.

    Trade between Thailand and Cambodia eased by 6 per cent last year to US$5.6 billion. Cambodian exports to Thailand amounted to $936 million, while the country’s imports from Thailand amounted to $4.7 billion.

    Phnom Penh’s shopping centres comprise Aeon Mall, which is building a second outlet in the city, City Mall, Parkson and Soriya Mall.

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  • Central Group turns focus to e-commerce

    Central Group turns focus to e-commerce

    hai retail giant Central Group aims to raise the share of its e-commerce sales to 15 per cent over five years, up from the present 1 per cent.

    Presenting the company’s annual business plan, CEO Tos Chirathivat says the group will aggressively pursue expansion in the digital realm this year.

    About 10 per cent of the 45.53 billion baht (US$1.3 billion) capital investment allocation this year will be devoted to online business. The funds will mainly go toward developing a logistics network and an omni-channel platform, with capital spending on that front to double from next year.

    Central Group’s retail portal, Central Online, will be overhauled this year. The conglomerate acquired the Thai business of fashion e-tailer Zalora last year, and will adapt its know-how for Central Online’s makeover.

    The group is also eyeing markets outside of Thailand, including an online re-entry into China, from where it retreated two years ago. Central Group president Yol Phokasub says it aims to collaborate with a partner this time.

    Vietnam is another promising market. The group has two department stores there and is also a stakeholder in electronics retailer Nguyen Kim.

    Meanwhile, Central says its group sales last year increased 17 per cent to 332.7 billion baht. The refurbishment of key assets such as Bangkok’s Central Plaza Pinklao helped boost sales, along with Zalora and the acquisition of Vietnamese supermarket chain Big C.

    Central aims to reap sales of 382.2 billion baht this year, with a heavy reliance on overseas business, which accounts for 30 per cent of sales, as well as developed online business.

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  • Central Group Vietnam plans $30m investment

    Central Group Vietnam plans $30m investment

    Thailand’s Central Group plans a $30 million investment for its Vietnam expansion in the next five years.

    Central Group Vietnam will double the number of supermarkets as well as develop 13 commercial complexes by 2021.

    The Thai-based retailer has been expanding rapidly in Vietnam since 2013 targeting middle class customers.

    Since then, the group has acquired several operations to gain a strong foothold there.

    Last year, it acquired 49 per cent of electronics retail chain Nguyen Kim, followed by fashion eCommerce marketplace Zalora Vietnam.

    This April, Central bought out Big C Vietnam from the French group Casino in a deal worth $1.14 billion. The retail chain has 33 supermarkets nationwide which serves more than 50 million customers annually.

    With the population of more than 90 million, Vietnam has the world’s second-fastest growth per person since 1990, behind only China. In terms of retail growth, the country ranks in the top five in Asia and 11th globally.

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  • Big C Vietnam closes Cdiscount

    Big C Vietnam closes Cdiscount

    Big C Vietnam says it will close its eCommerce site Cdiscount by the end of December.

    The closure appears to be part of a policy change from Thailand’s Central Group after it bought the supermarket chain in April in a US$1.14 billion deal. The company will soon change the chain’s name and it has other eCommerce brands and established sites it could expand into Vietnam.

    Post-December, after sales service will be transferred to original retailers who used the portal.

    The e-tailer specialises in cell phones, household goods, beauty products and groceries and has been operating since the beginning of 2014. Originally it aimed to become the leading online retailer in Vietnam. However, after two years, Cdiscount has had little impact on the market.

    Vietnam is considered one of the two Southeast Asian nations with the most potential for eCommerce along with Indonesia. Korean retail giant Lotte recently announced plans to launch its first online shopping website Lotte.vn in Vietnam this month.

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  • Tourists boost Central Group revenue

    Tourists boost Central Group revenue

    Thai retailer Central Group expects revenue to rise 21 per cent to Bt320 billion ($9.17 billion) this year following strong growth in overseas business plus tourist spending.

    Controlled by Thailand’s Chirathivat family, Central is seeking to expand in Southeast Asia, says CEO Tos Chirathivat, citing Cambodia, Laos, Myanmar and Vietnam.

    He expects overseas revenue to account for 40 per cent of total in the next five years from 30 per cent now.
    Central bought superstore chain Big C‘s Vietnam business from French retailer Casino in April, comprising 43 stores and 30 malls. Vietnam is Southeast Asia’s fastest-growing market for Central, and the company expects sales to reach Bt37 billion this year.

    Central has also benefited from rising tourist numbers in Thailand, with sales up 15 per cent this year versus 5 per cent for Thai customers, says Tos.

    The group, whose interests include shopping mall developer Central Pattana, Robinson Department Store and Central Hotel Plaza, plans to spend more on its online retail business, which currently accounts for just 1 per cent of revenue.

    Central bought fashion-focused eCommerce site Zalora in April as part of a push to win back shoppers who increasingly prefer internet shopping.

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  • Revenue up 36pc for Zalora parent

    Revenue up 36pc for Zalora parent

    The Lazada and Zalora parent is paring back its losses after divesting operations in two markets.

    With operating losses nearly halved and excluding disposals in India and Southeast Asia, Global Fashion Group (GFG) has reported a 36.3 per cent rise in net revenue.

    Backed by Rocket Internet and comprising online fashion retail businesses in emerging markets, GFG says net revenue in constant currency rose 47.5 per cent to 456 million euros (US$512.73 million).

    GFG sold interests in Thailand and Vietnam for an undisclosed amount to retailer Central Group in April. It also sold its Indian fashion business Jabong to Flipkart for $70 million in cash in August.

    GFG raised 330 million euros in funding from existing investors in July, cutting the holding of Rocket Internet to 20.4 per cent.

    The company says adjusted losses before interest, taxes, depreciation and amortisation (EBITDA) narrowed to 67.6 million euros in the first half of this year from 120.5 million euros in the same period last year. The EBITDA margin improved to a negative 14.8 per cent in the first half from minus 33.4 per cent, which the company says was driven by tighter inventory management and cost-cutting.

  • Thailand retail growth predicted at 6%

    Thailand retail growth predicted at 6%

    Thailand’s retail market is expected to grow at a compound annual growth rate (CAGR) of more than 6 per cent from now until 2020.

    This was revealed in the latest market study by global technology research and advisory company Technavio.

    Its research report, Thailand Retail Market 2016-2020, offers an analysis of the market in terms of revenue and emerging trends, as well as forecasts for six major product segments – grocery, apparel and footwear, beauty and personal care, personal accessories, home and garden, and consumer electronics.

    Grocery

    Valued at US$103 billion last year, the grocery market in Thailand is forecast to reach $145 billion by 2020, growing at a CAGR of 6.92 per cent. The segment is largely driven by the modern retail sector, while increasing urbanisation and changing consumer lifestyles are playing a significant role in the market’s development.

    Supermarkets and convenience stores have shown the fastest year-on-year growth rates with 9.5 and 10.5 per cent respectively last year.

    “Even though hypermarkets offer attractive prices, consumers are increasingly preferring supermarkets for the convenience factor and the availability of a wide product range,” says Technavio lead retail goods expert Poonam Saini. “Unlike supermarkets, which are in urban zones, hypermarkets are generally in bordering areas, catering almost exclusively to nearby consumers.”

    Apparel and footwear

    The second-largest market segment last year, apparel and footwear is expected to reach $9.19 billion by 2020, growing at a CAGR of more than 3 per cent.

    Several foreign companies are competing with local companies in the segment, says the report. International brands have fair penetration rates, offering stylish designs and a wide product range through modern retail stores. Local brands have also been successful with their long-established presence along with customer loyalty and trust.

    “The popularity of the online channel is growing, and players are actively using social media sites such as Facebook and Instagram for promotional campaigns and marketing activities,” says Poonam.

    “Websites such as Zalora.com are becoming popular for apparel and footwear products, as these sites offer promotions and discounts.”

    Beauty and personal care

    One of the fastest-growing segments, beauty and personal care (BPC) is having more than 3 per cent CAGR and is expected to reach $5.53 billion by 2020. A continuous exposure to western beauty and grooming trends has helped maintain the growth of the market over the past few years.

    International BPC companies have a nearly 50 per cent share of the market, with comprehensive product portfolios and innovative products. Thai retailers are expanding and attracting new consumers, says the report, citing cosmetics brand Sephora, which opened two new stores in 2014 after entering the market late the previous year.

    Top vendors

    Technavio’s research analysts name five top vendors for Thailand in the report.

    Topping the list are supermarket Big C and retail conglomerate Central Group. Then follow CP All, which has a chain of 7-Eleven stores, and homewares stores Global House and Home.

    Other prominent vendors in the market are Adidas, Aeon, Isetan Mitsukoshi Holdings, Lazada, Nike, Sephora, Seven & I Holdings, Tesco, The Mall Group and WearYouWant.

    Technavio develops more than 2000 reports every year, covering more than 500 technologies across 80 countries. It has about 300 analysts globally.

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