Thai consumers save more, spending less

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Thai consumers save more, spending less  
Bangkok Post: 20 Nov 2008
Consumers saving more

A growing number of Bangkok residents are worried about economic problems and want to save money rather than spend, according to a consumer survey by the media and communication agency Y&R.

More than half of the 300 respondents expressed worries over economic problems, nearly double from the previous survey. As well, they viewed the uncertain economy as more serious than health problems, which was the top concern earlier.

The ''Y&Reflector 3'' survey studies changes of attitude, beliefs and interests of people in Bangkok every three months.

Oliver Kittipong Veerataecha, vice-president for strategy and brand consultant of Y&R, said 90% of respondents said they would adjust their behaviour by saving money.

They plan to cut expenses on foods and beverages, clothes, telephone bills, entertainment and travel.

''There was a group called 'crisis active' or people expressing the most concern accounting for one-third of total respondents,'' he said. ''We regard this is a warning for marketers for their marketing plans. These people are thinking about tightening their belts seriously.''

Most of the ''crisis active'' people are aged between 30 and 39 years old. They are willing to buy substandard goods if discounts are attractive. Advertising alone would not be able to seduce them to take money from their pockets. That would be a challenge for ad agencies.

The survey categories consumers into four groups based on their shopping behaviour. The first is called ''promotion-mania'', accounting for 40% of the 300 respondents. The others are defined as ''cost compromising'', which are willing to buy substandard goods (26%), ''brand image driven'' (18%) and ''openly available'', willing to try new products (16%).

Since there is polarisation in politics among Thais, the recent survey studied the pro- and anti-government spending behaviour as well. It showed that these people expressed their worries more than neutral ones.

Such consumers are rational and willing to pay for the best quality, but at reasonable price. Also, they will delay a purchase if a better deal is coming in the future.