Mounting cost of living concerns have big impact on Thais' purchase decisions
Nielsen data shows that 57% of Thai people feel that their income is insufficient for their expenses. And only 1 in 3 Thai people are not afraid of being fired in a recession.
Nielsen, a global leader in audience measurement, data and analytics, has released a new 2024 Industry Insights Report, providing comprehensive insights into consumer behaviour across various industries. The report reveals that a significant 57% of Thais are worried about their income being insufficient to cover their existing expenses. This figure has risen by 6% since 2021, driven by factors such as the aftermath of the COVID-19 situation, escalating inflation, and higher interest rates. These worries about the cost of living are exerting a substantial influence on purchasing decisions across multiple sectors.
When queried about the challenging economic conditions, merely 32% of Thais have savings they can rely on in case of job loss or six months of unemployment. Additionally, just 1 out of every 3 Thais feels secure about their job and is not apprehensive about potential job loss.
Cars rank as the top product that Thais plan to purchase in 2024
Despite the economic downturn, cars remain a strong desire and a practical necessity for many Thai individuals. The 2024 Industry Insights Report (Automotive) reveals that, in the upcoming year, cars received the highest preference among Thai consumers for future spending. Notably, over 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 benchmarks of success and essential needs in today's Thai society.
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Despite global economic challenges, Thailand's market thrives with positive signs. Consumers are actively planning purchases, especially in autos, electronics, and real estate, presenting opportunities for these industries. These industries are poised to capitalize on the current era of heightened consumer demand through robust marketing strategies.
A recent Nielsen survey examining advertising expenditure patterns reveals an intriguing trend: the automotive and electronics sectors have allocated fewer resources to advertising compared to the year 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.
Runchita Srivoravilai, Thailand Vertical Lead for Advertiser and Agency at Nielsen Thailand "Consumer behaviour continues to evolve, and the consumer journey, the path to a purchase decision, is evolving as well. The emergence of new perspectives and lifestyles has set new standards in 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''
The 2024 Industry Insights Report is a comprehensive study conducted through a 360-degree survey involving individuals aged 12 and above in Thailand. This report covers various sectors such as automotive, insurance, real estate, retail, e-commerce, super apps, OTT, Vitamins, Food Supplements and more. Each report provides an in-depth analysis of demographics, product consumption, attitudes, lifestyles, media habits, brand awareness, and other relevant behaviours within the respective industry.
