From Louis Vuitton’s LV The Place Bangkok to Coach The Coffee Shop these are certainly not a list of your regular neighbourhood coffee shops. By Arushi Sakhuja
The trajectory of Southeast Asia's luxury market mirrors a broader global trend, with the Asia-Pacific region poised to become the second fastest-growing luxury market worldwide, following closely behind Europe. Countries like Thailand, Vietnam, and Singapore have become alluring hubs for luxury brands, thanks to the surge in high-net-worth consumers. According to Global Data estimations, the Asia-Pacific luxury market is expected to be the second fastest-growing luxury market in the world after Europe, growing at a CAGR of 5.6 per cent between 2022 to 2026. Further, Bain & Company forecasts Southeast Asia’s ascent to outpace other emerging regions over the next decade, underscoring the region's immense potential for luxury brands. Giving us an insight into the luxury market in South East Asia, Chef Garima Arora of Restaurant Gaa in Bangkok said, “The South East Asia region has become a captivating market with a growing high spending power and embracing luxury as a status symbol in society has made the region one of the leading regions for market growth in recent years.”
Image Courtesy: Restaurant Gaa and Chef Garima Arora of Restaurant Gaa in Bangkok
However, the realm of luxury is no longer confined to fashion boutiques and exquisite timepieces; it has seamlessly extended into the gastronomic sphere. This strategic expansion allows luxury brands to move beyond traditional product lines and offer consumers unique experiences that are in sync with the brand ideology. Hence, giving the audience a flavour of the brand without an outright product market. But what drives luxury brands to venture into the culinary world? The culinary scene in South East Asia is also expanding rapidly she believes, “Every day, new restaurants and cafes are opening up. Each restaurant has its unique theme and identity, drawing inspiration from various parts of the world, and providing diners with a wide range of choices. This has led to an increased demand for restaurants and cafes.”
The rise of luxury brand cafes
The landscape of Southeast Asia's luxury market is witnessing a remarkable evolution, marked by an intriguing fusion of high fashion and gastronomy. Gone are the days of conventional neighbourhood coffee shops; instead, we find an emergence of luxury designer cafés in South East Asia such as Louis Vuitton’s LV The Place Bangkok and Coach The Coffee Shop, redefining the concept of culinary indulgence. Expanding on the retail store experience, recently in Southeast Asia, it's become quite common to stumble upon cafes or restaurants prominently displaying the names of renowned luxury brands. Executive Pastry Chef Sylvain Constans, Capella Bangkok, also believes that there has been more and more demand for high-brand fashion given that the sales of luxury goods have soared tremendously. “Throughout the region, we have seen fashion trends permeate gastronomy with many fashion brands putting their spin on restaurants and cafe culture. Designer cafes are ubiquitous in many major cities in Southeast Asia such as Ralph Lauren's Ralph's Coffee in Singapore and recently the first-ever Louis Vuitton Cafe in Southeast Asia, located in Bangkok.”
Image Courtesy: Capella Bangkok, Executive Pastry Chef Sylvain Constans, Capella Bangkok
Since COVID-19, there has been an advent of online shopping and over time consumers have shifted to purchasing products virtually due to the competitive prices. This however has compelled luxury fashion brands to reimagine the brick-and-mortar retail experience, giving rise to the convergence of fashion and food, also known as experiential stores. Moving away from product-driven retail spaces, fashion and gastronomy, once perceived as unlikely bedfellows, now intertwine seamlessly to cater to experience-seeking millennials.
These fashion eateries not only promise impeccable culinary standards but also serve as extensions of the brand's identity, showcasing exquisite presentation, artistic design, and elite craftsmanship. “The opening of our Coach Restaurant shows our intention to create immersive experiences for our customers,” shared, Todd Kahn Chief Executive Officer and Brand President of Coach. “The Coach Restaurant champions the reimagination of our heritage and pushes the boundaries of what a fashion house can be through experiences that delight all five senses. My vision was to create an atmosphere that feels imaginative and offbeat but also warm and inviting,” elaborated Creative Director of Coach, Stuart Vevers.
Coach The Restaurant and Coffee Shop in Jakarta
By creating immersive lifestyle spaces, brands can appeal to a broader demographic while reinforcing brand loyalty. Customers are still promised all of the brand’s trademark standards and character but in the form of an experience rather than a pair of clothing or accessories. The luxury aura and vibe emanating from cafes and upscale restaurants align seamlessly with the image luxury brands wish to convey, positively impacting consumer perception. By offering unforgettable moments and unique experiences in offline spaces, luxury brands can strengthen the bond with their customers, beyond just product purchases. In a world where fine dining and experiences are shaping travel trends and eating habits, the rise of such cafes boosts the profits of these luxury brands. The rise of luxury designer cafes in Southeast Asia exemplifies a broader shift towards experiential luxury, wherein brands curate multi-sensory experiences to captivate consumers. This infusion of style into culinary spaces aligns with a broader strategy aimed at redefining retail outlets. The goal is to transform these spaces into dynamic destinations that transcend mere product sales, offering multifaceted experiences to entice local clientele and recapture market share lost to online competitors. For consumers, it’s about experiencing an extension of the brand’s environment. Cafés and other F&B venues not only convey the brand’s culture and philosophy but also allow consumers to immerse themselves in the brand’s atmosphere. Chef Constans, adds “After COVID, there has been a surge in consumption demand in Southeast Asia especially in travel and dining. Hence, I think many luxury brands use desserts as a way to tell their stories and identities in a way that is approachable and casual. Likewise, when creating new desserts, I also use my creation to tell the story of Capella Bangkok's ethos.”
LV Cafe at LV The Place, Bangkok
LV Cafe at LV The Place, Bangkok
LV Cafe at LV The Place, Bangkok
LV Cafe at LV The Place, Bangkok
Newly Opened Luxury Brand Cafes in Southeast Asia
Following suit of the West, in the Asia-Pacific region, this experiential luxury through cafe-complex stores is already becoming a major trend. Take, for instance, the excitement over the new Louis Vuitton restaurant in Bangkok at LV The Place. The store includes an immersive exhibition, café, store, and restaurant from the celebrated chef, Gaggan Anand. Renowned Indian chef Gaggan Anand invites guests on an exquisite culinary journey, at Gaggan at Louis Vuitton. The space is brought to life with a striking pyramid of trunks, guiding patrons into a space adorned with undulating walls, resin structures by Draga & Aurel elegant Monogram flower lamps and a finely laid tablescape with Louis Vuitton serveware. Thus, strengthening the brand presence in an unconventional form. The Le Cafe by Louis Vuitton echoes the tropical climate of Southeast Asia, the interior boasts natural materials such as wood, raffia, and lush greenery. On the menu, guests can try a delectable array of pastries, cakes, tarts, parfaits, and ice cream sandwiches, each adorned with distinctive Louis Vuitton motifs. And when you lure clients with dishes that look so appealing who wouldn’t want to be back? Similarly at Coach The Restaurant and Coffee Shop in Jakarta, you can find the ‘C’ logo printed on a burger’s bun and it features menu covers, napkin cuffs, placemats and waitstaff aprons crafted from glove-tanned leather, and plates that feature floral detailing inspired by Coach collections. The opening marks a new chapter in the house’s venture into crafting interactive and exploratory experiences that captivate the senses on various levels. Finally, Ralph’s Coffee at Marina Bay Sands Singapore is done in a signature dark green, and each coffee cup is adorned with the brand motif. The Singapore outlet offers a range of Ralph’s Coffee merchandise like T-shirts, hats, tote bags and mugs for purchase.
Ralph’s Coffee at Marina Bay Sands Singapore
Ralph’s Coffee at Marina Bay Sands Singapore
Retail spaces are changing, and these fashion-branded cafes are delicious proof of it. The restaurant industry is emerging as a new segment for the luxury industry to conquer. Leading luxury brands have always found a natural outlet in the culinary segment, but never before has this phenomenon experienced such a frenzy. However, coffee remains a side business for luxury brands – it’s a marketing strategy rather than a commercial investment. The main goal is to bring more traffic to offline stores and to provide a branding space for promotional activities.
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