Thailand's economic forecast for 2024 is shaping up as both challenging and full of opportunity, particularly within the retail and automotive sectors. Leading this narrative are key industry leaders who are actively adapting to shifting customer needs and global market trends.
Achara Ampuch, Vice Chairman of The Mall Group, has been vocal about the evolution necessary for retail spaces to thrive amid changing consumer behaviors. "The world has changed; customers have changed. Creating malls on 20-30 rai of land is no longer feasible," she said, underscoring the need for innovation within the shopping experience.
The traditional model of shopping centers is increasingly under scrutiny as new consumer preferences emerge. According to Ampuch, the strategies must focus on the creation of quality brands and competitive design, particularly as fashion becomes the first victim of economic downturns. "This year will focus on creating brands with quality and competitive design. Fashion is impacted first by the economy," she noted. This call for excellence emphasizes the need for Thai fashion brands to rise on the global stage.
Meanwhile, the automotive sector, represented by companies like Krungsri Auto, is responding to changing preferences as well. According to them, the primary trends shaping the automotive industry as it heads toward 2024 are encapsulated by the '3 C's': "Connectedness, Careful Spending, and Community-on-the-go." This trend analysis reveals how vehicles and ownership models are transforming within the Thai consumer ecosystem.
The concept of 'Connectedness' highlights how technology, particularly artificial intelligence and social media platforms, have become integral to consumer experiences. Young consumers, especially from generations like Gen Z, are more inclined to share opinions and seek comparison reviews online before making significant purchases. Hence, businesses are shifting to meet the expectation for seamless online-to-offline shopping experiences.
On the financial side, consumers are pivoting toward 'Careful Spending,' increasingly opting for short-term rental options and subscription models over traditional ownership. This reflects broader economic concerns, with forecasts predicting Thailand's car rental market reaching THB 50 billion next year as individuals seek flexibility without long-term commitments.
These insights point to how different sectors are interlinked, presenting opportunities for strategic collaborations, especially within fintech and consumer behavior analytics.
'Community-on-the-go' speaks to the aspect of social commerce, where buyers interact socially about purchases via platforms like Facebook and Instagram. This trend is growing as second-hand car markets gain traction online, enabling users to gather more detailed information and data about vehicles before committing to purchase.
Looking to the future, Achara's vision for The Mall Group underlines the importance of drawing inspiration from both local and global travel to rethink retail spaces. "Retail cannot remain stagnant; we need to draw continual inspiration from around the world. It’s about reinvention constant innovation, and being flexible to keep up with global trends," she emphasized.
Achara Ampuch, alongside the younger generation of the Ampuch family—who are also becoming ascendant figures within the company—are gearing to redefine the retail experience as well as drive the Thai fashion industry toward global recognition. With plans for new developments, such as Bangkok Mall, slated for the near future, Achara has stated, "We have to find new formulas for success, as the old ways of doing business are no longer viable; innovation must be at the forefront of our strategies to stay relevant."
Despite the pressures facing the retail space, there remains hope—particularly as strategic initiatives to boost local brands and create inspiring retail concepts are actively being implemented.
With effective strategies outlined for the retail sector and automotive trends expected to influence consumer habits, Thailand's economic outlook for 2024 appears set for dynamic change. These insights from leadership figures like Achara Ampuch and representatives of Krungsri Auto incorporate both foresight and practical measures for confronting economic challenges and seizing new market opportunities.
