An emerging Thai middle class has grown to 49 million people because of digital connectivity and higher purchasing power, according to a Facebook study.
The middle class has greater access to smartphones, e-payments and logistics than ever before.
"Digital connectivity has opened up a world of opportunities," said John Wagner, managing director of Facebook Thailand. "An emerging middle class has grown and they have significant economic potential because of their increased purchasing power. To grow alongside this demographic, businesses should pay attention to how they are evolving."
Facebook worked with Bain & Co for the consumer behaviour study in Thailand and Southeast Asia.
"The study focused on the digital journey of middle-class individuals to explore how digital connectivity is changing their behaviour and purchasing habits," Mr Wagner said. "This provides businesses with fresh insight to support their go-to-market efforts."
In provincial Thailand, the study encompassed the provinces of Khon Kaen, Maha Sarakham and Surat Thani.
By 2022, mobile payments are expected to constitute US$30 billion in transactions, whereas e-commerce logistics is forecast to reach $7.5-9 billion.
The study forecasts the emerging middle-class demographic in Southeast Asia to reach 350 million by 2022 and represent $300 billion in disposable income.
Based on interviews of 12,000 people across Thailand, Malaysia, Indonesia, the Philippines and Vietnam, the study identified four consumer trends that are on the rise with the new wave of connectivity.
These trends are mainly due to the emerging middle class's newfound power of choice through connectivity.
Offering options
Digital technology gives consumers the power to choose their identities by accessing new spheres of information. Unlike previous generations, consumers can choose to embrace a modern identity, despite traditional cultural values.
Online spaces also let consumers choose communities, both online (in chat rooms and Facebook groups) and in real life (through meet-ups).
Online space brings people together, uniting those who share passions, interests, aspirations and challenges. Unlike previous generations, people can unite via interests or hobbies, unrestricted by physical location. Online communities help shape and influence their attitudes, their behaviours and their world views.
Digital exposure has opened up a world of possibilities for the emerging middle class, enabling them to follow their dreams.
Previously, socioeconomic status restricted individual potential, whereas nowadays, online spaces allow ambitions to manifest into dreams.
Emerging middle-class consumers can choose joy though spending habits and opportunities. They choose to spend on things that bring them pleasure like beauty, travel, experiences and branded goods.
Vathit Chokwatana, president of Saha Pathanapibul Plc, said businesses should develop customised products that meet the needs of this demographic.
"As a business, we must assess the changing lifestyle and behaviours of the emerging middle class," he said.
Of 40 business leaders interviewed in the study, 77% recognised the emerging middle class as a key growth driver for their businesses.