The big spending power of the Chinese is resulting in many retailers adapting.
Recently we looked the appetite for shopping in Thailand from the Chinese. Enjoying the country’s retail opportunities and picking up local items to take back home. But with this growing number of Chinese, how is the industry adapting?
One thing that retailers have changed is the effortless shopping experience. Making it even easier for the Chinese to spend. This has been achieved through a mix of ways according to CBRE Thailand’s recent report, ‘Retail occupiers and landlords must adapt to Chinese tourism growth’.
The real estate firm cite that this has been achieved by increasing foot traffic and upping how much the Chinese spend. Improving accessibility is one obvious way, but also by making sure that the right sort of product is available. Team this with more convenient payment options and the retailers are sure to capture this powerful segment of tourists.
One retail brand that is well known to the region is King Power. Chinese tourists can be found clutching bags of this duty-free outlet in any of Thailand’s airports. It is estimated that last year 80 percent of King Power’s revenue came purely from residents of mainland China. Such a success story that the King Power store in Bangkok has ensured that its stock is filled to the rafters with products geared towards the Chinese. It is also estimated that 60 to 70 percent of the Chinese coming to Thailand make a trip to a King Power store as part of their holiday.
Familiar payment terms
So once the box is ticked for making sure the right product is on offer, what else can retailers do? Make it easier to transact. Research identified the Chinese love affair with using e-payment platforms from home soil. Only 10 percent pay with credit cards or cash, so many retailers have started offering payment via Alipay or WeChat Pay. This includes Central Group who are known for their expansive shopping network across the country and The Mall Group. Both of these retail giants also offer promotions geared solely towards tourists to help entice foreign money further.
These factors CBRE Thailand believe will help build the solid foundations of cashing in on Chinese shoppers now and in the future. Providing the right products rich in Thai cultural that are easy to purchase. Recommendations that should be taken heed of when considering that the Tourism Authority of Thailand anticipate Chinese tourists to be 9.5 million this year.