Siam Piwat Simon turns to local market

29-Oct-2020 Intellasia | BangkokPost | 6:02 AM Print This Post

Siam Piwat Simon, the operator of Siam Premium Outlets Bangkok, has shifted its focus to local shoppers to offset its lower revenue from foreign tourists.

Michael Tang, the company’s managing director, said the pandemic has suspended air travel and made it difficult for foreign tourists to enter Thailand.

As a result, Siam Premium Outlets Bangkok needs to refocus its attention to entice more Thai and expatriate customers to comprise 90 percent and 10 percent of total customers, respectively, during 2020 and 2021.

Before Siam Premium Outlets Bangkok opened in June this year, the company targeted 40 percent foreign tourist customers and 60 percent Thais.

With the pandemic, the number of daily visitors at outlets was 16,000 in June, falling to 8,000 visitors during the weekends, then only 4,000 during weekdays in July and August.

Spending per visit at the outlets did increase to 4,000 baht per visit, compared with 1,000 baht in June.

Spending per square metre at outlets is relatively high, at the same rate as premium outlets under Simon Group in Malaysia, where outlets are fully operational. Figures were not disclosed.

Tang said the outlets’ revenue in the first four months of operations was 50 percent higher than expected, partially thanks to the revenue-sharing model with tenants.

He said the company recorded a 10 percent increase in shoppers this month from September.

Siam Piwat Simon wants to focus on promoting its premium outlets, particularly among Bangkok residents.

“There is still room to grow our business because our survey found only 45 percent of Bangkok residents are aware of Siam Premium Outlets,” said Tang.

“Once the pandemic is over, the company expects the proportion of Thai shoppers will decline to 80%, with 20 percent being foreign tourists.”

The outlets are preparing festivities to welcome foreign tourist arrivals to Thailand under its special tourist visa (STV) policy.

Chinese tourists started returning last week under the STV policy granted to revive tourism. Another 145 Chinese tourists from Guangzhou arrived in Thailand on Monday on a flight from China Southern Airlines, along with 118 foreign businesspeople and another 16 Thai returnees.

“I am confident foreign tourist arrivals will show signs of recovery in 2021,” Tang said.

As of September, there are 108 shops with over 200 brands available at the outlet.

In the fourth quarter this year, the company plans to unveil 32 luxury brands such as Salvatore Ferragamo and Breitling in addition to other international brands such as Marc Jacobs, Karl Lagerfeld, Fred Perry, Mango, Cotton On, Converse, The Clozet, Grand Motorsport, Siam Takashimaya, Santa Barbara, Sabina, Morgan and Daks.

More international and luxury brands are expected to open outlets from November until next year, when the outlet mall will be 100 percent operational.

“Although Thailand’s economy is expected to recover at a slow pace, we still want to continue by thriving on our own strengths,” Tang said.

Siam Premium Outlets Bangkok is a joint venture between Siam Piwat, Thailand’s leading shopping centre and property developer, and Simon Property Group, which operates more than 200 premier shopping outlets worldwide.

https://www.bangkokpost.com/business/2009403/siam-piwat-simon-turns-to-local-market

 

Category: Thailand

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