In an attempt to attract the growing population of mid- to high-end shoppers in Thailand and other major Southeast Asian countries, The Japan News reported that Japanese companies have been opening shopping centers and department stores in the country and have expansion plans in place to open more retail outlets throughout the region.
The Aeon Sriracha Shopping Center in the Chonburi Province is the latest example of this. The three-story shopping mall, which was opened by Aeon Thailand in October and the company, is located in a residential area of Sriracha. The company hopes to attract the large number of Japanese expats living in the region as well as Thai buyers.
“We’ve expanded to the area in anticipation of its growth potential,” Masamitsu Ikuta, managing director of Aeon Thailand told The Japan News. “We want to attract middle-class consumers in Thailand.” He added that the company is planning to open more shopping malls in local cities in other parts of the country during the next few years.
Another Japanese company with a growing presence in Thailand is Tokyu Department Store. The retailer opened its second store in Thailand at Paradise Park in June. This move prompted competitor Takashimaya to reveals plans that it is also entering the Bangkok market. Their department store will open at the Iconsiam mixed-used development in 2017, The Japan News added.
Mitsui Fudosan is another company with plans to expand into the Kingdom. It opened Mitsui Outlet Park, which sells high-end products at discount prices, in a suburb of Kuala Lumpur in May and announced plans to open a store in Thailand as well.
A senior official at a major Japanese retail company and other observers told The Japan News that severe competition has already emerged in major cities throughout Southeast Asia including Bangkok. Not only do the Japanese companies face competition from each other, but from foreign and local companies as well. This is why it is vital for Japanese shopping centers and department stores to differentiate themselves from the others and take advantage of their popularity with buyers in the ASEAN region.
Image: Takashimaya will open at the Iconsiam mixed-used development in 2017.
