Although cheaper prices attract consumers in Thailand, it seems a product’s quality is the highest priority when making a purchase decision.
According to the Thailand Consumer Market Study – 2017 from global market intelligence agency Mintel, as many as three in five (58%) metro Thai consumers rate high quality as a key purchase factor, making this the leading driver of buying decisions. Also ranking in the list of the top five purchase influences among metro Thais are convenience (42%), special offers (40%), durability (35%), and finally, their favourite brands (26%).
Thai consumers have seemingly become more cautious with their finances as Mintel research revealed three in five (59%) metro Thais said their personal goal in 2016 was to get their household finances in order. For the best bargains in town, 45% of metro Thais who are smartphone users say they use their devices to compare prices at other stores while out shopping and 43% say they use their smartphone to research the best price of an item in their area before deciding where to make purchase.
Avanthi Ravindran, senior trend and innovation consultant, South-east Asia and India at Mintel, said: “Thailand’s consumers have become more prudent with their spending in recent years. In light of this, more and more consumers are turning to online channels that give them access to competitive offers and cheaper pricing. However, our research shows that high quality remains a key driver of purchases, and consumers are still willing to pay a premium for products that are safe and natural.”
Consumers are now also willing to pay a premium for ‘safe to use’ claims on products, as indicated by two in five (40%) metro Thai consumers. This is the second biggest factor behind consumers’ willingness to pay a premium among urban Thais, following ‘better product performance’ (43%) which is the leading motivator. The third most important consideration to purchase products with a premium price tag is for them to be natural and formulated using pure ingredients; over one in four (27%) metro Thais said that they are willing to pay a premium for everyday products that are ‘natural’.
“With ingredient safety concerns on an upward trend globally, consumers are on the lookout for products that highlight naturalness as well as clean, pure formulations. The words ‘safe’ and ‘natural’ enhance a product’s appeal to consumers, and these perceptions are only likely to grow with the increasing concerns around food safety and chemical contamination,” Ravindran added.
The Thailand Consumer Market Study – 2017 provides in-depth analysis into the lifestyles of metropolitan Thai consumers ages 18 and older who reside in the five key regions in Thailand.