Fifty-seven percent of Thais are worried about their income being insufficient to cover their existing expenses, up from 51% in 2021, according to the market research firm Nielsen.
This heightened uncertainty is driven by factors such as the aftermath of the Covid-19 pandemic, escalating inflation and higher interest rates. These worries about the cost of living are exerting a substantial influence on purchasing decisions across multiple sectors, the company's 2024 Industry Insights Report shows.
When questioned about the challenging economic conditions, only 32% of Thais have savings they can rely on in case of job loss or six months of unemployment. Additionally, just one out of every three Thais feels secure about their job and is not apprehensive about potential job loss.
Despite the economic downturn, cars remain a strong desire and a practical necessity for many Thai consumers. The report reveals that in the coming year, cars top the table among big-ticket items that they intend to purchase.
Notably, 34% of respondents in the Greater Bangkok area expressed intentions to purchase a car in 2024. This desire for both cars and properties like houses and condominiums reflects that owning a home and a car continues to be viewed as a benchmark of success and an essential need in today's Thai society.
Despite global economic challenges, Thailand's market shows some positive signs. Consumers are actively planning purchases, especially in autos, electronics and real estate, presenting opportunities for these industries. These industries are poised to capitalise on the current era of heightened consumer demand through robust marketing strategies.
The 2024 Industry Insights Report covers numerous sectors including automotive, insurance, real estate, retail, e-commerce, super apps, OTT, vitamins, food supplements and more.
Each report provides in-depth analysis of demographics, product consumption, attitudes, lifestyles, media habits, brand awareness and other relevant behaviours related to the specific industry.
Nielsen also notes that its recent survey examining advertising expenditure patterns reveals an intriguing trend: the automotive and electronics sectors have allocated fewer resources to advertising compared to 2021. This shift underscores the need for these industries to seize the moment and intensify their marketing efforts, harnessing the abundant opportunities presented by an eager consumer base.
"Consumer behaviour continues to evolve, and the consumer journey, the path to a purchase decision, is evolving as well," said Runchita Srivoravilai, Thailand vertical lead for advertisers and agencies at Nielsen Thailand.
"The emergence of new perspectives and lifestyles has set new standards for consumption, media use, attitudes, lifestyles and brand awareness. Therefore, a deeper understanding of consumer needs remains crucial. By enhancing the customer experience, brands can boost sales and win over the hearts of their customers."