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Profound Transformations await Retailers and Developers in Bangkok

The evolving retail landscape and consumers’ changing behaviour has led to the emergence of new retail formats and adoption of new technologies. Traditional retailers are continuously being forced to evolve and invest in digital transformation.

CBRE Thailand

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Construction Workers in Bangkok

The retail industry is undergoing one of the most profound periods of technological transformation in history.

The evolving retail landscape and consumers’ changing behaviour has led to the emergence of new retail formats and adoption of new technologies. Traditional retailers are continuously being forced to evolve and invest in digital transformation. 

The growing future supply in Bangkok will put more pressure on older centres to renovate and upgrade in order to remain competitive

As of Q1 2019, the total retail supply in Bangkok was almost 7.8 million square metres according to CBRE Thailand, increasing by 3.70% Y-o-Y. The total new retail supply in the whole year 2019 will be one third higher than total new supply last year.

And by the end of 2021, we expect that the total retail supply will exceed 8 million square metres, with the majority of the increase being in large mixed-use developments in the downtown area. 

To survive, big retail players are venturing into new retail formats such as mixed-use development and outlet malls to diversify their portfolio. However, smaller players who are unable to reinvent themselves have been struggling.

E-commerce is having a significant influence on consumers’ behaviour

Electronic Transactions Development Agency (ETDA), value of Thai e-commerce
According to the Electronic Transactions Development Agency (ETDA), the value of Thai e-commerce grew by 14% in 2018 to about THB 3.2 trillion

The impact is increasing as it provides the consumer with choices and convenience which malls cannot fulfil. According to the Electronic Transactions Development Agency (ETDA), the value of Thai e-commerce grew by 14% in 2018 to about THB 3.2 trillion and the growth is expected to reach 20% this year. While the retail sales only grew by 3-4% Y-o-Y. 

According to Ministry of Digital Economy and Society, Thailand’s digital economy will play a critical role in every industry and is expected to reach 25% of total GDP by 2027. The country’s four largest banks have all dropped digital transaction fees since April last year to retain retail customers. 

Customers are more demanding than ever, forcing retailers to invest heavily in digital transformation. According to Gartner, global retail tech spending will increase by 3.65%, to USD 203.6 billion this year. Leading Thai retail players are shifting investments towards (1) Data analytics (2) Omnichannel (3) Artificial Intelligence (4) Digitalised in-store experience and (5) Personalisation/Customization. 

Thai retail giant like the Central Group are focusing on building cloud-based consumer data, personalized loyalty platforms and omnichannel experiences.

While 7-Eleven who just expanded to over 11,000 stores, have been expanding into banking and embracing artificial intelligence to gain customer insights and create personalized in-store experiences.

Globally, China’s largest tech giants, Alibaba and Tencent, have been spending billions of dollars on an omnichannel ecosystem to create seamless a customer journey across online and offline channels.

Despite the surge in e-commerce and other technology, the majority of consumers still value the personal experience in a physical store

A study conducted by IBM and the National Retail Federation validates that 98% of Gen-Z shoppers still prefer to make their purchase in bricks-and-mortar stores. Another recent Retail Customer Research by Accenture also found that by 2020, there will be Gen-Z population of 2.56 billion and 98% will own a smartphone.

This means retailers need to constantly adopt new technologies and innovative strategies for both online and offline channels to remain relevant to ever-changing consumer demand. The retail industry is signalling a tipping point where retailers must reinvent themselves to survive. The wining retailers are the ones who are ready to move away from the traditional retail models and rethink their strategies in alignment with customer expectations.

An article written by Pichamon Chomanan, an analyst at Research & Consulting, CBRE Thailand for Bangkok Post dated 12 June 2019.

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National

Thailand to further ease COVID-19 restrictions

The Cabinet approved to ease the level of control over the country under the COVID-19 situation including relaxing businesses and activities in 4 areas.

National News Bureau of Thailand

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The Cabinet approved to ease the level of control over the country under the COVID-19 situation including relaxing businesses and activities in 4 areas.

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Economics

BoI plans more efforts to promote BCG economy

National News Bureau of Thailand

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BANGKOK (NNT) – The Board of Investment (BoI) is working with related agencies to rev up promotion of the bio-, circular and green (BCG) economy to help drive growth over the next 5 years.

BoI Secretary-General Duangjai Asawachintachit said the BoI is looking into more business categories for high technology as part of efforts to promote the BCG economy.

She said the government is focused on developing the bio-economy as Thailand has more than 30 million people working in the farm sector, yet most of them remain in poverty.

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Asean

ASEAN, Canada, UN Women launch 5-year programme to advance Women, Peace and Security Agenda

Asean News

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Joint Press Release ASEAN, Canada, UN Women jointly launch 5-year programme to advance Women, Peace and Security Agenda
Jakarta/Ottawa/New York, 24 February 2021 – The Association of Southeast Asian Nations (ASEAN), Canada and UN Women jointly launched today a five-year programme to expand and strengthen women’s leadership and participation in conflict prevention, resolution and recovery in South-East Asia.

The CAD 8.5 million (US $6.36 million) programme, “Empowering women for sustainable peace: preventing violence and promoting social cohesion in ASEAN”, is funded by Global Affairs Canada to support ASEAN and the implementation of the ASEAN-Canada Plan of Action 2021-2025, with the support of UN Women as a lead UN partner.

“Canada is proud to launch this flagship initiative that uses the women, peace and security approach to promote inclusive and sustainable peace and security in the region, while addressing the systemic gender inequality,” said Diedrah Kelly, Canada’s Ambassador to ASEAN.

ASEAN has made important strides to advance women, peace and security agenda, including the adoption of the first ‘Joint Statement on Promoting Women, Peace and Security in ASEAN’ in 2017, the launch of the ASEAN Women’s Peace Registry in 2018, and convening the first ASEAN Symposium on Women, Peace and Security in 2019 and the ASEAN Ministerial Dialogue on Strengthening Women’s role for Sustainable Peace and Security in 2020.

Secretary-General of ASEAN Dato Lim Jock Hoi said, “ASEAN is working concertedly to advance women, peace and security agenda across the three ASEAN Community Pillars as part of our commitment to promote gender equality and the roles of women in the implementation of the ASEAN Comprehensive Recovery Framework.”

The COVID-19 impact has increased the risks for women and girls in fragile and conflict-affected contexts and this challenges us to re-examine threats to human security. “The pandemic highlights the important linkage between peace, humanitarian and development and the critical need for women’s leadership and participation to ensure effective and comprehensive response, from policy decision-making to peace building and pandemic response,” said Jamshed Kazi, UN Women Representative and Liaison to ASEAN.

The new programme reflects the commitment of ASEAN and Canada to promote gender equality and to respond to an increasingly widespread calls across the globe for women to be empowered to lead and participate in peace and development.

ASEAN includes Brunei, Cambodia, Indonesia, Lao People’s Democratic Republic, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Viet Nam.

For more information, please contact:
Montira Narkvichien
Regional Communications Specialist
UN Women Asia and the Pacific
Tel: +66 2 288 1579 | Mobile: +66 81 6688900 | Email: [email protected]

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