How global brands are shaping Bangkok’s retail evolution

Driven by international brands, Bangkok's retail landscape is thriving and enhancing its global standing. With a retail supply of 9.2 million sqm NLA in 2024, the city competes with heavyweights like Beijing (15.3 million sqm) and Shanghai (16.4 million sqm). It distinguishes itself with a high retail density of 1.0 sqm NLA per capita, surpassing Beijing and Shanghai’s 0.7 sqm NLA per capita. This has made Bangkok a competitive arena for brands eager to secure their place in this highly competitive market.

Figure 1: International leasing activities in prime retail centres within Bangkok’s CBA, 2019 vs. 2024YTD

Source: JLL Thailand Research

International brands are at the heart of this momentum, with leasing activity doubling pre-pandemic levels and increasing fourfold compared to the COVID-19 period. In 2024 alone, there has been a 70% year-on-year increase. The fashion sector has led this transformation, expanding over 6.8 times since 2019 (Figure 1). This growth is fuelled by the economic recovery, the return of tourists, and a rising demand for immersive physical shopping experiences. This is solidifying Bangkok's Central Business Area (CBA) as an appealing location for international brands.

Figure 2: Three stages of international brand evolution in Bangkok’s retail market

Source: JLL Thailand Research

Bangkok's retail scene in 2024 highlights the market’s maturity through three distinct leasing stages (Figure 2):

The journey begins with international brands entering the market, utilising social media platforms to shape their entry strategies, which range from pop-ups to flagship stores in prime CBA locations. The first nine months of 2024 have seen nearly double volumes compared to 2019, showcasing confidence in the retail market's revival. During this stage, well-known brands from mass market to bridge line fashion segments have established themselves in the city's prominent retail locations.

This has been the most active phase in 2024, with activity quadrupling compared to 2019. As the customer base grows, brands are racing to build their presence and reputation. Mass-market fashion brands are spearheading this movement, opening multiple branches across the city. At the same time, luxury brands are strategically expanding with several stores in leading malls. These luxury brands offer diverse product lines spanning women's and men's fashion, as well as beauty products, reflecting market sophistication.

The final stage marks a significant evolution in retail strategy, driven by Bangkok's competitive market. As prime malls rapidly emerge in the CBA between 2023 and 2025, landlords are introducing bold and creative concepts. Brands are pushing boundaries with immersive concept stores, expanding across single floors or into duplex formats to meet the growing demand for experiential shopping. Anchor and standalone experience hubs have become the new frontier, exemplified by the Louis Vuitton café and Dior Gold House. These innovative spaces go beyond traditional retail by offering unique and unforgettable experiences that enhance customer engagement and foster brand loyalty through emotional connections.

Through these evolution stages, Bangkok's CBA retail market thrives with energy as international brands strategically redefine their shopping experience. By embracing immersive in-store concepts, retail centres have adeptly responded to the shifting consumer preference despite digital challenges. This approach elevates Bangkok’s retail scene, reinforcing its position as an innovator in the global retail landscape.