More than half (54%) of Thai consumers are concerned that macroeconomic volatility will affect the country's economic outlook, according to PwC's latest survey.
This has led them to opt for spending more on essential goods. Social media has emerged as the most favoured channel for shopping among Thais, although concerns about personal data leakage persist.
According to the "Voice of the Consumer Survey 2024: Asia Pacific – Thailand Snapshot", economic uncertainty was the number one concern for consumers, making them cautious about their spending habits.
The survey found 54% of Thai consumers said macroeconomic volatility would significantly impact the country in the next 12 months, surpassing other factors such as inflation (53%) and cyber risks (41%).
"The ongoing economic uncertainty in Thailand is affecting overall consumer spending behaviour," said Pisit Thangtanagul, CEO of PwC Thailand.
"Most Thais are becoming more cautious with their expenditures, yet they strive to balance essential spending and enhance their lifestyle. They are now primarily focused on getting value for their money."
The PwC survey, which gathered the opinions of 504 Thai consumers on shopping trends and factors influencing purchasing decisions, such as emerging technologies, climate change and social media, between January and February 2024, found that Thai consumers will prioritise necessities over luxury items in the next six months.
Some 69% said they expect to increase their spending on groceries, followed by health and beauty products (60%) and electronic devices (52%).
According to the survey, four in 10 Thai consumers will consider switching from their preferred brands to cheaper alternatives if they perceive them as better value. Meanwhile, 51% are comfortable spending on travel, home improvements (50%) and clothing and footwear (46%).
SOCIAL MEDIA RULES
Thai consumers, among the top users of the internet and social media globally, align with PwC's findings. The survey found that 73% have purchased products through social media platforms, higher than the Asia-Pacific average of 56% and the global average of 34%.
According to the "Digital 2024: Thailand" report by We Are Social and Meltwater, there are 63.2 million internet users in Thailand, with most spending nearly eight hours a day online. Additionally, there are more than 49 million social media users in the country.
Although Thai consumers enjoy engaging in shopping activities via social media, whether discovering new brands (82%) or purchasing products or services endorsed by influencers (62%), the survey found that they rated companies and social media platforms as the least trustworthy. A sizeable 77% have expressed concerns about privacy and data sharing.
Mr Pisit said business operators must prioritise data protection to build consumer trust, as Thai shoppers consider data protection to be the most critical aspect for businesses.
GREEN PREMIUM
Despite economic concerns, Thais are placing greater emphasis on sustainable consumption.
An overwhelming 95% of Thai consumers said that they have been affected by climate change in their daily lives. This has led more than half (58%) to choose sustainable products, with a willingness to pay up to 11.7% more on average. This figure is also higher than the global and Asia-Pacific averages of 9.7% and nearly 11%, respectively.
Mr Pisit said the sustainability initiatives of companies will continue to influence Thai consumers' purchasing decisions in the future. PwC's report found that waste reduction and recycling will have the greatest impact on their decisions (45%), followed by eco-friendly packaging (37%) and positive impacts on natural and water conservation (35%).
What's more, 79% of Thai consumers have shown interest in owning electric vehicles (EVs) or hybrid electric vehicles (HEVs) for sustainable transport.
"Thai consumers are now more broadly aware of climate change issues and are willing to pay a premium for eco-friendly products. Therefore, retailers should develop strategies that balance consumers' purchasing power and environmental impact," said Mr Pisit.
"This involves integrating online and offline marketing channels and leveraging GenAI technology to attract customers and boost sales. At the same time, investing in cybersecurity should be considered to build customer trust and brand loyalty."
To download the full "Voice of the Consumer Survey 2024: Asia Pacific – Thailand Snapshot", visit https://tinyurl.com/3hcns4xv
