KTC and Luxury Brands Explore Future of High-End Consumer Market

Mr. Apichet Kiatworakun, CFA, Director – Finance, Krungthai Card Public Company Limited (KTC) discussed global luxury industry trends and the economy, stating, “The year 2025 presents a ‘perfect storm’ for the Thai economy due to both domestic and international pressures, including a slowdown in the tourism sector, the risk of US tariffs, and persistently high household debt, resulting in a downward revision of economic growth to just 1.6% – 2.3%. However, we are also seeing a ‘contrasting trend’ which is the strong growth of the high-end consumer market, reflecting an uneven ‘K-Shaped’ recovery and signaling the need for businesses to urgently adapt their strategies. Spending on luxury products and services is projected to grow by an average of 9.8% annually between 2025 and 2032 (data from Verified Market Research), driven by rising asset values and the strong purchasing power of high-net-worth individuals, both Thai and foreign.”

“The trend of ‘Quiet Luxury’ and the ‘Experience Economy’ is more than just a passing fad. It reflects a deep psychological shift in consumer behavior that brands must understand and adapt to in order to thrive in the new era. Consumers are moving away from products that flaunt status through logos, seeking instead authenticity, craftsmanship, and meaningful experiences in an ever-changing economic landscape. Business success will no longer be measured purely by sales but by the ability to build genuine connections with consumers and co-create value with their communities. We believe that ‘opportunities’ still exist, even during the most challenging times, and that truly listening to consumers will be the key to guiding organizations toward long-term sustainability.”

Mrs. Pranaya Nithananon, Head of Credit Card Marketing, at Krungthai Card Public Company Limited (KTC), discussed credit card spending trends among affluent consumers, “Despite the overall economic slowdown, high-income consumers remain a high-potential group and the main purchasing power in the market, particularly premium customers who prioritize value over price. We observe that their spending behavior is becoming more cautious, yet they continue to choose products and services that genuinely match their lifestyles and specific needs. Currently, KTC members with incomes of 50,000 baht or more represent 20% of our portfolio and generate 40% of total spending. Meanwhile, members earning over 100,000 baht per month account for about 7-8% but contribute up to 20% of total spending. Key spending categories for this group include insurance, travel, healthcare, and daily expenses such as dining and fuel.”

“Consumers with high purchasing power today are not seeking the biggest discounts, but rather products and services that are ‘valuable’ and ‘meaningful’ to their lives. Therefore, we have developed a strategy to serve this customer group through 3 key approaches, focusing on creating value that is truly personalized:

1) Exclusive Value: Select privileges tailored to specific member groups using the “By Invitation Only” concept to create a sense of exclusivity, such as designing dedicated campaigns for Ferrari and Jubilee customers.

2) CRM & Loyalty Program: Partnerships to expand the member base and enhance customer experiences on familiar platforms, such as point exchanges between KTC and Siam Piwat via the ONESIAM SuperApp, and

3) Service Excellence: Reliable, personalized services that understand emerging customer groups, including Gen Z and the tech-driven wealth segment influenced by technology and social values.

KTC believes that resilience and sustainable shared value creation are essential goals for luxury businesses in the modern era. We focus on building long-term partnerships with premium brands, leveraging real-time customer data to design personalized offers, and co-creating campaigns that deliver more meaningful experiences than simple discounts. Ultimately, customers will remember not just what we provide, but how much we enhance and add value to their lives.”

Ms. Thanaporn Tantiyanon, Managing Director of ONESIAM Shopping Center, Siam Piwat Company Limited,  a leading real estate and retail developer, the owner and operator of Siam Paragon, Siam Center, and Siam Discovery, and a joint owner of ICONSIAM, ICS, and Siam Premium Outlets Bangkok, commented on the luxury retail business project, “The luxury business is undergoing a major transformation. The purchasing behavior of new-generation consumers in this segment has clearly shifted. They now value ethics, uniqueness, and meaningful experiences over simply owning luxury products. Products that meet these expectations must be of high quality, rare, and truly reflect the consumer’s identity. Siam Piwat sees an opportunity to redefine ‘New Luxury’ as something beyond big brands, focusing on superior value while creating a global community through a platform that allows everyone to experience and engage with luxury in a tangible way.”

“Siam Piwat focuses on understanding global trends and the emotional value of high-purchasing customers to create truly unique and distinctive experiences. We are moving forward with the Co-Create & Collaboration strategy with world-class partners, upgrading luxury CRM, and building a strong ecosystem for sustainable success. Despite economic uncertainty, we continue to see growth in the luxury segment, especially Fine Jewelry and watch brands that have consistently chosen to invest with us. We prioritize creating new experiences, such as Exclusive Pop-up Stores, Events, and JAI by ONESIAM club, to engage the new generation of high-purchasing customers and drive the Sustainable Luxury approach, which connects luxury with social and environmental responsibility. In an era of rapid economic and consumer behavior changes, Siam Piwat emphasizes Agile Strategy management and fosters an organizational culture that is open to transformation. We encourage cross-functional collaboration and develop personnel to leverage digital technology effectively, ensuring we deliver experiences that meet customer needs accurately and promptly. Additionally, we place strong importance on sustainability in all dimensions to achieve steady growth while remaining socially responsible.”

Mrs. Nandhamalee Bhirombhakdi, Managing Director of Cavallino Motors, the official Ferrari importer and after-sales service provider in Thailand, stated, “Bringing a world-class brand like Ferrari to operate in Thailand is a challenging task due to import taxes, operating costs, and competition from independent importers. However, Cavallino Motors views this as an opportunity to showcase the brand’s true standards by focusing on delivering ‘value’ through personalized and meaningful experiences. We believe that high-net-worth customers not only look for external luxury but also appreciate attention to detail and long-term commitment. Therefore, we have invested in new pre-owned showrooms and paint shops, as well as organized activities such as Esprienza Ferrari, Passione Ferrari Club Challenge, and invitations for customers to attend Universo Ferrari events abroad, all to reflect the spirit of the world-class brand through authentic experiences.”

“We follow the concept that ‘True Luxury’ means continuity, integrity, and exceptional service. Our goal is to enhance our people, systems, and technology to deliver sustainable 5-star standards, taking care of customers like family under the concept of ‘Just for You,’ which pays attention to every step of the customer journey. We see ourselves not just as a dealer but as a long-term relationship manager. We believe Ferrari is more than just a car. It is a symbol of inspiration, lifestyle, and real-world success in every dimension, moving forward with a deep understanding of customers and flexible organizational management that adapts to all changes in today’s world.”

Ms. Unyarat Pornprakrit, Chief Executive Officer of Jubilee Enterprise Public Company Limited, Thailand’s leading diamond and jewelry trading business, added, “Today’s luxury consumers seek more than expensive products. They value quality, meaning, and self-expression. Jubilee Diamond addresses these needs with refined designs, customization, and a unique shopping experience that builds deeper connections between customers and the brand. In this era of more rational spending, high-net-worth and affluent groups continue to prioritize ‘quality over price,’ especially when products evoke emotions and create unique experiences. Jubilee Diamond, therefore, focuses on world-class service, personalized care, and credibility as Thailand’s number one diamond brand, which has been part of Thai society for over 96 years.”

“The COVID-19 crisis has proven Jubilee Diamond’s resilience and adaptability. We swiftly expanded into comprehensive online sales channels and maintained close customer care across all platforms, while continuing to prioritize sustainability, technology, and transparent communication. Our focus on ‘customer insights’ and purchasing behavior enables us to design products, services, and campaigns that meet real customer needs, creating a genuine connection at every life stage. In the luxury business, especially during economic slowdowns, the key challenge is sustaining ‘strong brand affinity.’ We believe that sincere service, meticulous attention to detail, and uncompromising quality are the essence of a luxury brand that customers will return to during life’s significant moments. To reach new groups such as Gen Z and the emerging affluent segment, Jubilee Diamond has developed campaigns that directly engage younger audiences, investing in seamless digital experiences that are truly personalized. We communicate authentically to build lasting bonds, staying true to our core principles of Excellence, Legacy, and Trust, ensuring these values are passed down across generations.”

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