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Thailand's increased economic growth, supported by a comeback in tourism, benefits the retail sector.

Thailand’s increased economic growth, supported by a comeback in tourism, benefits the retail sector.

According to Brand Finance’s Thailand 50 2023 study, which assesses the country’s 50 most valuable and powerful brands, retail brands in Thailand are benefiting from the country’s increased economic growth as tourism is on the upswing. All but one of them reported at least 8% growth in brand value.

A larger pool of consumers became familiar with these brands as foot traffic increased during the epidemic, which increased brand strength for retail brands. In turn, this increased brand strength led to brand value growth for Central Retail (up 8% to US$1.7 billion), which dropped one spot to eighth place, Home Pro (up 28% to US$923.97 million), which remained in 14th place in our rankings, and Big C (up 16% to US$781.35 million), which rose one spot to sixteenth. Dohome, which is currently ranked 28th on the list with a brand value of US$261.11 million, made the list for the first time thanks to the strong momentum.

This year, PTT continued to hold the status of being Thailand’s most valuable brand, and its brand value increased by 20% to US$6.6 billion. PTT’s exceptional financial success is greatly influenced by the strengthening of its brand. The company reported first-half 2022 revenues of almost US$47.61 billion, a substantial 66.7% year-over-year rise. Higher worldwide petroleum and petrochemical costs and needs also contributed to this growth.

PTT received the Excellent rating from the Low Carbon and Sustainable Business Assessment and Rating Project in 2022 in honour of its dedication to social and environmental responsibility. PTT also won two honours this year from the Securities Exchange of Thailand, including the Best Innovative Company Award for the second consecutive year and the Sustainability Award of Honour. It is still dedicated to operating with the goal of reaching carbon neutrality and net-zero emissions through programmes to reduce greenhouse gas emissions and changing its portfolio investment strategies in the future energy sector.

Luxury hotel chain Centara Grand not only made its debut in the rankings this year but also took home the title of Thailand’s strongest2 brand. Centara Grand got 32nd place with a brand value of US$232.97 million. It achieved a strong brand strength index score, which considerably boosted the brand’s worth. The financial performance of Centara Grand was also influenced by the brand’s strength; in the first half of 2022, the company reported revenues of almost US$232 million, a gain of 50% year over year.

The company wants to increase the scope of its international business operations by taking advantage of the prospects provided by the tourism sector’s recovery. The five-star hotel will open in Osaka later this year, marking Centara Grand’s first in Japan. The hotel, which will be 33 stories tall and be located in the vibrant Namba entertainment and shopping district, is scheduled to open in July 2023. Customers will benefit from exclusive deals on reservations in conjunction with Thai Airways (brand value up 3% to US$991 million) to commemorate its grand opening. Centara Grand plans to rank among the top 100 hotel operators in the world by 2027.

Central Pattana charted an impressive growth of 34% to US$373.37 million and improved its brand ranking by two places, claiming 23rd position in our rankings alongside the title of fastest growing brand in Thailand this year. The development in brand strength brought on by important marketing initiatives was the cause of Central Pattana’s rise in brand value. 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.”

Source: traveldailymedia

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