Thailand Poised to Become ASEAN's Luxury Goods Hub as Wealthy Flock to "Safe Haven"

Thailand is rapidly evolving from a popular tourist destination into a prime location for luxury brands, reflecting its growing appeal to high-net-worth individuals (HNWIs) seeking a regional "safe haven".

The potent combination of tourism and retail is driving the luxury market to flourish despite global economic uncertainties, firmly establishing the country as a key centre for high-end goods.

Amidst a volatile global economy, Thailand's luxury retail sector is demonstrating remarkable resilience.

Recent examples include Louis Vuitton's "LV The Place Bangkok", a groundbreaking 360-degree concept store featuring retail, a café, a restaurant, and an exhibition, which debuted globally in Thailand, and Dior's striking new golden "DIOR Gold House" concept store in Bangkok's Ploenchit district.

Chotika Tungsirisurp, Head of Project Development Advisory and Market Research at CBRE Thailand, noted the market's current value of 147 billion baht, with an anticipated average annual growth of 5% up to 2028.
 

This robust performance underscores strong domestic demand and the continued influx of affluent international visitors.

CBRE's "Thailand Real Estate Market Outlook 2025" report highlights the crucial synergy between the tourism and retail sectors.

In 2024, Thailand welcomed 35.5 million international tourists, providing a significant boost to the service industry and cultivating a new customer base for luxury brands.

The expansion of over 410,000 square metres of retail space in central Bangkok between 2024 and 2025 has provided ample room for international brands.

Simultaneously, property developers are actively enhancing the quality of shopping centres to attract premium labels, through initiatives such as the refurbishment of luxury zones, the introduction of bespoke services like multilingual interpreters and duty-free shopping, and the elevation of the overall customer experience.

A key factor in Thailand's ascent as a luxury destination is its prime locations and the steadily increasing HNWI customer base, comprising both high-spending tourists and expatriates choosing Thailand as their long-term residence through various visa schemes, alongside the country's reputation as a regional "safe haven".
 

The "Lumpini" district is emerging as a new focal point for global fashion houses. The expansion of Central Embassy and Central Chidlom, coupled with the arrival of DIOR Gold House, illustrates brands strategically investing in areas synonymous with luxury and offering direct access to their target demographic.

Meanwhile, "Phuket" is becoming a new battleground for high-end retail, with the refurbishment of Central Phuket Floresta and the planned opening of Siam Premium Outlets signalling the broadening demand for luxury goods into secondary tourist hotspots.

In an era where brands sell experiences as much as products, retail developments in Thailand are adapting to this evolving landscape. A prime example is Gaysorn Village, which has transformed into Louis Vuitton's experiential retail space under the "LV The Place Bangkok" concept, integrating a restaurant, exhibition, and flagship store – effectively using "space" as a powerful tool for brand communication.

At the same time, Siam Piwat Group, the force behind Siam Paragon and ICONSIAM, plans to introduce over 15 new luxury brands in 2025, underscoring the continued strong demand and employing a complementary "Tenant Mix" alongside premium services to create a distinctive offering.

"The evolution of the luxury brand business in Thailand is being propelled by the strength of tourism, the growing number of HNWIs, and the demand for exceptional retail experiences."

As luxury brands increasingly invest in Thailand and developers enhance their offerings to create world-class experiences, this clearly indicates a transition from Thailand being a "market of choice" to a "target market" for top-tier global brands. This trajectory firmly positions Thailand as the emerging luxury goods hub of Southeast Asia.