International brands in the luxury and fast-fashion categories continued to enter Thailand or increase the number of stores in major malls in Bangkok thanks to the strong retail market, according to a recent research report by CBRE, an international real-estate adviser. They have entered the market in the form of owned stores, franchises and distribution deals.International brands expanding their business lines in the Thai market in the third quarter of this year include the fourth store of Christian Dior at Siam Paragon, the second store of Tory Burch at The Emporium and the first store of Miu Miu at Siam Paragon.H&M also opened its flagship store at CentralWorld, said Jariya Thumtrongkitkul, senior manager of retail services for CBRE Thailand.The report also shows that the overall occupancy rate for Bangkok retail space stayed at 95.4 per cent as of the third quarter. The total supply was 6.28 million square metres, a 2.6-per-cent increase year on year. A total of about 120,000sqm of space in shopping malls and department stores is expected to be completed during the current fourth quarter, bringing the total retail supply to 6.39 million square metres by the end of the year.Looking at the overall Asia-Pacific markets, retailer demand for leases in the third quarter continued to be led by fast-fashion retailers, as groups in this sector entered new markets and introduced sister brands to locations where they already have a presence.”Fast fashion” is industry jargon for designs that move quickly from the catwalk to the shops.
Despite weaker consumer sentiment in emerging Southeast Asian markets in the third quarter, the likes of Bangkok, Manila and Jakarta should continue to see steady rental growth, CBRE said. All of these markets continue to see robust leasing demand and strong competition for space.