The Rise of Premium Cameras in Thailand
Despite the economic slowdown in Thailand, there has been a noticeable shift in consumer behavior towards premiumization, particularly in the luxury camera segment. This trend has been observed by Big Camera Corporation Plc, which has noted significant growth in this area.
Thanasit Thienkanjanawong, the managing director of Big Camera Corporation, highlighted that the global digital camera market is experiencing a recovery. In Thailand, the market has shown consistent growth over the past two to three years, with an average annual increase of 10-15%. This upward trajectory is driven by various factors, including changing consumer preferences and the influence of international trends.
One key driver of this growth is the return of younger generations to digital cameras, especially compact models. This aligns with a global trend where major camera brands are launching new compact products. Additionally, some Thai consumers, including younger generations, are purchasing cameras not only for personal use but also for collecting and investment purposes.
The country’s status as a key tourism and luxury shopping destination also plays a role in boosting the camera market. International tourists contribute to the demand for high-end cameras, further supporting the growth of the luxury segment.
While the premium segment shows a positive outlook, the entry-level or economy-priced camera segment may face challenges due to the sluggish economy. However, Big Camera Corporation is focusing on expanding its presence in the premium market through strategic partnerships.
One such partnership is with Leica, resulting in the launch of the Leica Store Siam Paragon on the second floor of Siam Paragon. This store reflects Thailand’s growing luxury market and strengthens the country’s position as a regional premium retail hub.
Sunil Kaul, managing director of Leica Camera Asia Pacific, emphasized that the opening of this new Leica Store is a key strategy in expanding the customer base in Southeast Asia, particularly among photography enthusiasts and luxury consumers. He believes that the strong offline retail network in Thailand allows for better service to customers across the country.
In contrast, in large countries like the United States and China, well-known local camera stores may serve certain regions but might not have a wide nationwide network. As a result, customers in those countries often rely on e-commerce for greater accessibility.
However, in Thailand, the offline retail network is robust, enabling physical stores to reach customers in all regions. Kaul also pointed out that pricing on e-commerce platforms can be inconsistent, which is not ideal for camera brands aiming to maintain value and consistency.
Moreover, many customers still prefer the physical experience of touching and testing products before making a purchase. This preference reinforces the company’s focus on human resources, especially training staff to become highly knowledgeable about the products they are selling.
Kaul believes that the emergence of e-commerce will not significantly impact sales of high-end electronic appliances and cameras, as consumers often go to experience and buy them from physical stores, unless there are significant online discounts available.
Overall, the camera market in Thailand is showing resilience and growth, driven by a combination of factors including consumer preferences, strategic partnerships, and a strong offline retail presence. This bodes well for the future of the luxury camera segment in the country.