Developing creative and innovative new products is crucial for companies to attract consumers and expand sales amid the current economic doldrums, says a London-based research firm.
"Given the combination of higher household debt and tight consumer spending plus the downward prices of agricultural products, companies need to innovate in a fast and relevant manner in order to attract consumers to spend," said Howard Chang, general manager of Kantar Worldpanel.
Mr Chang sees recovery in the second half at the earliest. Thongrob Promchin
In January, consumer spending in Thailand grew by 3%, equal to the same period last year, he said, citing an internal report.
However, the organic growth for daily products was only 1.2%.
"The situation has recently got worse around the world, especially in China, Malaysia, South Korea and the Philippines," said Mr Chang.
On the other hand, other emerging markets like Brazil, Bolivia, India and Indonesia witnessed double-digit sales growth for consumer goods last year. However, these countries saw a reduction in growth rates last year due to the global economic slowdown.
Thailand is no exception, Mr Chang said. Thais spend less per bill and buy products in smaller portions. The frequency of purchases is also less than before.
Lower income and shrinking purchasing power were the major factors for the fall in consumer goods sales, particularly food and beverages, he said.
Mr Chang said improvements in the economy and purchasing power were expected in the second half of the year at the earliest.
He urged the government to outline clear policies to help farmers and promote the agricultural sector in order to increase farmers' income.
The tourism industry is also another crucial sector that the government needs to stimulate.
Mr Chang suggests companies apply creative marketing strategies and innovative campaigns to match rapidly changing consumer behaviour and lifestyles.
Electronic commerce is another important channel companies need to access in order to serve new-generation consumers.