Southeast Asia: The next boom region for luxury?

The region’s own creative ecosystem is also drawing attention. Brands such as Chanel, Loewe and MaxMara work with influencers across Southeast Asia, such as Yoyo Cao in Singapore, Oranicha Krinchai (known by her nickname Proud) in Thailand and Quynh Anh Shyn in Vietnam. Publisher Condé Nast (which owns Vogue Business) has been investing, with the launch last September of Vogue Philippines under editor-in-chief Bea Valdes. Condé Nast also has editions of Vogue in Thailand (since 2013) and Singapore (since 2020).

Homegrown designers from Southeast Asia are starting to make an impact overseas. Dry Clean Only, founded in Bangkok by Patipat Chaipukdee, is stocked by global retailers such as Hong Kong-based Lane Crawford and worn by stars including Beyoncé. Swim and ready-to-wear brand Isa Boulder, founded by Bali-based designers Cecilia Basari and Yuli Suri, stages a first show during Paris Fashion Week this September. Luxury accessories brand Boyy, co-founded by Thai native Wannasiri Kongman and her husband Jesse Dorsey, operates out of Italy and presents at Milan Fashion Week. Tank Air, a label founded by Bangkok-born, Los Angeles-based Claire Robertson-Macleod, is a favourite of singer-songwriter Olivia Rodrigo, and models Kiko Mizuhara and Bella Hadid. Hung La, a first generation Vietnamese-American based in London, is behind edgy womenswear label Kwaidan Editions, stocked by Net-a-Porter, Antonioli, and Km20, and menswear label Lu’u Dan, sold exclusively at Ssense.

The nurturing of a portfolio of Asian designers is “important for cultural relevance as well as newness”, says Alfrayda Ayob-Chew, senior general merchandising manager for fashion at Lane Crawford. The buying team has been more intentional about sourcing buzzy Korean brands and those with Southeast Asian roots. “They can stand alongside and very much complement international designers,” Ayob-Chew says. Among Lane Crawford’s highlights are Gia Studios, founded by Vietnamese designer Lam Gia Khang, and Biyan, by Indonesian designer Biyan Wanaatmadja.

Southeast Asia’s long-term luxury potential is immense, experts agree. “Southeast Asia will grow as its own segment even as Chinese demand recovers and continues,” says BMI’s Yeo. BMI forecasts that by 2027, 76 per cent of households in Malaysia will have disposable incomes above $15,000 a year, 28 per cent in Thailand and 23 per cent in Indonesia. That could add up to more than 200 million households, Yeo says.

Meanwhile, some degree of patience is required. Brands should be prepared to wait a while and invest time before the full potential of the region’s consumers is unlocked. “As many consumers will be entry-level luxury consumers, buying their first luxury product, they will lack the brand loyalty that may have already been established in more developed markets,” says Yeo. “This means that companies will need to invest more into cultivating brand loyalty, often from scratch — and there will be more competition in the space.”

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