The Thai retail market has grown exponentially over the past decade due to the rapid expansion of the middle-to-high-income consumer segment. The Thai Retail Index, as reported by the Thai Retailers Association (TRA), grew by 2.97% in 2016. This pattern has continued in 2017 and it has evolved into a dynamic retail market for the sale of a vast number of lifestyle goods and services to a relatively young and increasingly affluent population.
Penetrating the Thai retail market should involve several specific and targeted steps. A luxury online platform like iTS COOLER can assist your brand in developing a mixed market entry strategy in order to tap into the potential of the Thai retail market.
The following list details a few essential factors that should be considered in devising a strategy for your brand’s entry:
- Awareness of culture-driven consumer behaviour: The Thai consumer is keen and willing to spend on differentiated goods and services; however, they are also cautious in their purchasing decisions, and this ought to be remembered when attempting to penetrate the Thai retail market. iTS COOLER’s keen understanding of local behaviour can help your brand’s efforts.
- Identifying the exact market segment and target market: The Thai retail market needs to be divided into its various market segments: geographic, demographic, psychographic, et cetera. If we consider demographic segmentation, for example, we can then view the various occupation and income groups it consists of. Thereafter, we can identify and pursue the exact target market our brand wishes to attract. In this case, it would be middle-to-high income earners demanding luxury items. iTS COOLER has identified and caters to the widest segment of this target market possible, so that you don’t have to.
- Market entry strategy based on partnership: Penetrating the Thai retail market should involve a market entry strategy which incorporates the input and existing sales infrastructure of a local partner. The fee to register with iTS COOLER and list your luxury brand is far less than the cost of establishing a franchise or a subsidiary in Thailand. Plus, you can benefit from iTS COOLER’s existing import, logistics, payment and marketing services. This is also important to create local consumer confidence.
iTS COOLER’s understanding of the luxury goods market is stellar and, therefore, we are able to help you enter, launch and promote aggressively to the discerning Thai and expat consumer.