Why do the Chinese have such a love affair with Thailand’s shopping?
Thailand has long been a mecca for the Chinese. Coming to the Kingdom to enjoy the tourist attractions on offer, but most notably the shopping. It could even be argued that the Chinese are driving the retail industry. Spending their well earned yuan across the country.
The amount of tourists arriving in Thailand do not appear to be slowing down. Recent figures reveal that from January to September of this year the kingdom has welcomed 26.1 million arrivals. A hike of just over five percent if compared to the previous year. The Chinese make up over a quarter of these arrivals and have also increased by over 11 percent.
But why is Thailand the place to go for Chinese shopalcoholics? Well it is the variety on offer according to CBRE Thailand’s recent report, ‘Retail occupiers and landlords must adapt to Chinese tourism growth. From the shiny air conditioned shopping malls that are conveniently located off the capital’s efficient BTS Skytrain network to the markets and wholesale outlets. Shopping is made easy, least of all because many tour operators package holidays geared towards the Chinese including shopping trips as part of their time in Thailand.
This could be about to change though although not expected to happen immediately. Younger Chinese tourists appear to be shifting their attitude. It is no longer just about shopping, rather about getting some local cultural experiences thrown in for good measure too. Something that Bangkok’s shopping centres are trying to provide according to real estate firm CBRE Thailand.
In the meantime the Chinese still budget a considerable chunk of their holiday funds to shopping. According to the Tourism Authority of Thailand 41 percent. This compares to just four percent that is spent in restaurants.
Popular items
So what are the Chinese buying? Money is split between food, souvenirs, fashion and cosmetics and personal care.
Buying gifts for friends and family whilst on holiday is a Chinese custom. CBRE Thailand have noted that Siam Paragon has seen an increase in Chinese shoppers visiting their food supermarket Gourmet Market. Often purchasing Thai goods such as local herbal products, dried fruit and fried seaweed.
Designer handbags have long since been a penchant for the Chinese. Buying these or other local brands come with the added bonus of a VAT return at the airport too. Local cosmetics have surged in popularity too. Not only from the Chinese, but also residents of the Middle East and Hong Kong.
With an increased number of Chinese shoppers, the industry is adapting. More Chinese speaking staff are being hired to help steer their shopping experiences. Stay tuned to Thailand Property’s blog for our next post to find out more about how the retailers are adapting to this growing number of Chinese shoppers.