Retail sector cashes in from Thailand’s accelerated economic growth bolstered by tourism rebound

Retail brands in Thailand are cashing in from the nation’s accelerated economic growth as tourism is on the rebound – according to Brand Finance’s Thailand 50 2023 report which ranks the nation’s 50 most valuable and strongest brands. All but one posted brand value increases of at least 8%.

Increased tourist traffic augmented brand strength for retail brands, owing to a greater pool of consumers becoming familiar with these brands as footfall continues to increase post-pandemic. The increase in brand strength, in turn, drove brand value growth for Central Retail (brand value up 8% to US$1.7 billion) although it fell by one spot to 8^th place, Home Pro (brand value up 28% to US$923.97 million) which retained 14^th position in our rankings and Big C (brand value up 16% to US$781.35 million) which slipped by one position to 16^th. The positive momentum also saw Dohome making the list for the first time, sitting at 28^th place with a brand value of US$261.11 million.

PTT retained its title of being Thailand’s most valuable brand this year and saw an increase in brand value by 20% to US$6.6 billion. PTT’s increase in brand strength is an important contributor to its stellar financial performance, with the brand posting revenues of approximately US$47.61 billion in the first half of 2022 with a significant 66.7% year-on-year growth. This growth was also supported by higher global petroleum and petrochemical prices and demands.

In recognition of its commitment to environmental and social responsibility, PTT was awarded the Low Carbon and Sustainable Business Assessment and Rating Project at the excellent level in 2022. PTT also received two awards organised by the Securities Exchange of Thailand this year, namely the Sustainability Award of Honour and Best Innovative Company Award for the second year running. It remains committed to conducting business with the aim of achieving carbon neutrality and net-zero emissions via greenhouse gas emission reduction projects and adjusting its portfolio investment plans in the future energy business.

Centara Grand, a luxury hotels brand, not only made it to this year’s rankings for the first time, but also claimed the honour of being the strongest² brand in Thailand. With a brand value of US$232.97 million, Centara Grand secured 32^nd place. It attained an impressive brand strength index score which contributed significantly to the increase in brand value. Centara Grand’s brand strength also drove its financial performance, with the brand posting a revenue of approximately US$232 million in the first half of 2022 which represents a year-on-year growth of 50%.

Riding on the opportunities presented from the recovering tourism industry, the brand seeks to expand its business operations overseas. This year, Centara Grand plans to launch Centara Grand Hotel Osaka, making the five-star hotel its first in Japan. The 33-storey hotel is set to open in July 2023 in the exciting entertainment and retail district of Namba, an ideal destination for all travellers. In collaboration with Thai Airways (brand value up 3% to US$991 million), customers will enjoy special offers on bookings to celebrate its grand opening. By 2027, Centara Grand envisions itself to be one of the world’s top 100 hotel operators.

Central Pattana charted an impressive growth of 34% to US$373.37 million and improved its brand ranking by two places, claiming 23^rd position in our rankings alongside the title of fastest growing brand in Thailand this year. Central Pattana’s increase in brand value was due to an improvement in brand strength resulting from key marketing activities. For instance, the brand joined hands with the Tourism Authority of Thailand in 2022 to roll out “The Great Collaboration for Thailand’s Tourism Ecosystem” campaign, aiming to generate approximately US$23.03 million in tourism revenue.

Central Pattana also gained attention by partnering with various brands in 2022. For instance, it teamed up with Hermes to launch the Hermes Fit Bangkok at its shopping complex, centralwOrld. It also collaborated with Studio Ghibli and Uniqlo Thailand to feature an exhibition showcasing the animation studio’s most beloved works. These promotional campaigns helped the brand garner attention from both locals and tourists.

Alex Haigh, Managing Director – Asia Pacific of Brand Finance, commented:“In Brand Finance’s Top 50 Thailand brands rankings this year, retail brands are on the rise. This growth in brand value is propelled by the nation’s steady momentum of economic growth and improving travel industry. Notably, we find that brands’ marketing and collaborative efforts to reach consumers and enhance brand familiarity have come to fruition. We also extend our congratulations to brands from other sectors such as PTT, newcomer Centara Grand and Central Pattana for topping the ranks as our most valuable, strongest and fastest growing brand respectively.”