Thailand Report: What Next?
Latest data from Kantar, Worldpanel Division, reveals Thai consumers are already changing behaviour and managing budgets as the wider impact of COVID-19 on employment and income levels immediately hits spending power.
The Emergency Decree for Movement control was announced in the country on 26thMarch. During this period by the 3rd week of movement control, week ending 12th April, average weekly grocery spend was 3% lower than pre COVID-19 levels, and this reduction continued each subsequent week to the extent that consumers spent on average 8% less on groceries during week 3 to 5 of lockdown.
There are variations in the degree and speed to which consumers adjust. Through weekly tracking of shopping behaviour, Kantar has identified 5 key facts and implications about how consumers are adapting, and therefore what brands can do to be on the winning side of the future.
5 key facts to inform future planning
- Budgets are managed by shopping less often for groceries, and lower income consumers are quicker to change and cut back
- Budgets are managed by prioritising what to spend more on, what to spend less on and this differs by income level.
- Budgets are managed by changing product choice and trading down, yet consumers will still trade up or buy more (upsize) if they are engaged. How consumers engage to spend more differs by income and spending power.
- Consumers don’t necessarily want more price promotions.
- Being available in the right channels is paramount, but even channel availability does not guarantee success if the consumer need is not there.