Thailand new generation drive sales surge despite economic woes
Luxury retail has skyrocketed, with sales in the first half of this year soaring to four times the levels seen in 2019, before the Covid-19 pandemic hit, according to a market survey by The 1 Insight. This staggering growth comes despite a sluggish economy, thanks largely to the spending habits of new-generation shoppers.
The 1 Insight report highlights the resurgence of the “lipstick effect,” a phenomenon where consumers, even during economic downturns, opt for small indulgences like premium lipsticks. This trend has been observed globally, but the recent survey underscores its strong presence in the luxury market.
In a breakdown of the luxury sector, beauty products have outshone fashion items, outperforming them by about 10%. Among the hottest sellers in the beauty segment are lipsticks, makeup palettes, and perfumes. In fashion, handbags, accessories, and shoes top the list.
The survey also provides a fascinating glimpse into the shopping preferences of different generations. Gen Z (born 1997-2012) gravitates towards luxury cosmetics, perfumes, and skincare products. Meanwhile, Gen Y (born 1981-1996) shows a stronger preference for fashion-related items, followed by skincare and perfumes.
Older generations, like Gen X (born 1965-1980) and Baby Boomers (born 1946-1964), lean towards skincare, fashion products, and cosmetics. Notably, these groups also exhibit higher brand loyalty compared to the more brand-fluid Gen Z. Additionally, while younger consumers favour online shopping via e-commerce platforms and social media, Gen X and Baby Boomers still prefer the traditional storefront experience.
A separate survey by CRC VoiceShare, conducted from May to June, revealed that half of the respondents had purchased at least one fashion or beauty item in the past month. Most respondents expressed a preference for shopping at department stores, citing the superior customer experience and the tangible sense of luxury, reported The Nation.
In related news, Temu, China’s e-commerce giant, recently entered the Thai market, stirring up competition across both online and offline sectors in Thailand. The move, according to industry experts, is set to intensify cross-border competition, challenging existing players and local businesses alike.
