BANGKOK, Thailand – Thailand’s retail sector is undergoing a fundamental shift, driven by foreigners residing, working, or regularly commuting in the country, rather than traditional tourists. A new data analysis reveals a move from souvenir purchases to weekly grocery shopping, creating a multi-billion baht business that could position Thailand as a regional lifestyle center.
The Expats as a New Growth Engine
The analysis from The 1 Insight, the data unit of the digital lifestyle platform The 1, clearly indicates that the so-called ‘Expat Economy’ is no longer a niche phenomenon but a significant growth driver. Foreigners living in Thailand, owning property, or with families are consistently spending on daily necessities, with average spending significantly higher than locals.
The analysts differentiate between two main groups: ‘Long-Stay Residents,’ who have established their primary home in Thailand, and ‘Frequent Visitors,’ who spend at least three months annually in the country across multiple visits. While the number of frequent visitors and their per-capita spending remain stagnant, both the quantity and per-person expenditure of long-term residents are increasing dramatically.
20 Million Members and an AI Analysis
The insights are based on data from The 1, the country’s largest loyalty platform operated by the Central Group. With over 20 million members, representing approximately one-third of Thailand’s population, The 1 Insight utilizes Artificial Intelligence to analyze transaction data from brands such as Central, Robinson, Tops, and Power Buy.
The result is highly precise ‘Shopping Fingerprints,’ indicating that each nationality exhibits a unique purchasing profile deeply intertwined with their life circumstances in Thailand. A new loyalty program for long-term residents, integrated into the main app, aims to specifically attract and retain this customer segment with tailored benefits.
Chinese: From Shopping Tours to Home Furnishings
The transformation is most striking among Chinese consumers. They spend 2.2 times the average on home improvement and household goods, and 1.4 times the average on beauty products. These are no longer typical tourist purchases but represent items bought by individuals establishing a home and settling in Thailand long-term.
While independent Chinese travelers also contribute to higher spending, the trend clearly leans towards lifestyle consumption, with home and personal care purchases outweighing souvenirs. The data points to a departure from traditional group tour shopping towards deeply embedded local consumption.
Russians in Phuket Focus on Children and Groceries
Russian customers, who are a prominent sight, particularly in Phuket, also demonstrate a distinct spending pattern. They spend 1.4 times more on children’s products and 1.2 times more on groceries than the average. Their focus is on essential family needs rather than tourist souvenirs.
This recurring spending behavior, characterized by long-term resident families, makes the Russian customer base an exceptionally stable and predictable pillar for retail sales in family-oriented categories.
Japan’s Expats Dominate Sukhumvit
Japanese consumers exhibit the clearest profile for daily necessities, with a distinct geographical hotspot: Sukhumvit in Bangkok, the heart of Japanese life in the capital. Their spending on groceries (1.8 times the average), health & beauty (1.7 times), and books & stationery (1.8 times) is significantly above the average.
This reflects a pure demand for everyday products, focusing on daily needs, healthcare, and essential lifestyle items—a pattern strongly resembling local consumers, but with higher spending.
Commuters from Myanmar and Laos Love T-Beauty
The 1 Insight also observes a boom from neighboring countries’ customers. Consumers from Myanmar lead with beauty product spending 2.7 times above average, while fashion accounts for 1.5 times the average. The popularity of Thai cosmetics, known as T-Beauty, attracts shoppers to border towns like Mae Sot and Bangkok’s top malls.
Laotian consumers are equally significant, spending twice the average on beauty and 1.7 times the average on children’s products and sports items. These regular, cross-border family purchases, often made in shopping centers in northeastern Thailand, encompass private needs, gifts, and goods for resale.
Malaysia: Fashion Fans with Room to Grow
Malaysian customers stand out with fashion spending 1.8 times above average, particularly in Hat Yai and Bangkok’s shopping hubs. They visit for short trips with a clear focus on clothing, and their per-trip spending is comparable to that of Russians.
However, their travel frequency is lower, which The 1 Insight identifies as a significant untapped potential. The key to further growth lies in motivating Malaysian consumers to make more frequent trips to Thailand.
Thailand on the Path to Becoming a Regional Lifestyle Hub
The analysis indicates that Thailand’s retail sector is no longer solely benefiting from short-term tourist flows but is building on a more valuable foundation: foreigners who connect their lives with Thailand spend consistently, diversely, and deeply rooted in daily life. The ‘Expat Economy’ is catapulting Thailand beyond its pure tourism identity, increasingly positioning it as a lifestyle and trading center setting the pace for the entire region.
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