Macro worries: Thai consumers feel the crunch, says PwC survey
Thai consumers are increasingly concerned about the impact of macroeconomic volatility on the country’s economic outlook, with 54% expressing significant worry, according to PricewaterhouseCoopers’ (PwC) latest survey.
This prompted a shift towards spending more on essential goods. Social media has emerged as the preferred shopping channel, despite ongoing concerns about personal data leakage.
The Voice of the Consumer Survey 2024: Asia Pacific – Thailand Snapshot reveals that economic uncertainty tops the list of consumer concerns, influencing spending habits. The survey indicates that 54% of Thai consumers believe macroeconomic volatility will heavily impact the country in the coming year, outpacing concerns about inflation (53%) and cyber risks (41%), said Pisit Thangtanagul, CEO of PwC Thailand.
“The ongoing economic uncertainty in Thailand is affecting overall consumer spending behaviour. Most Thais are becoming more cautious with their expenditures, yet they strive to balance essential spending and enhance their lifestyle. They are now primarily focused on getting value for their money.”
Conducted between January and February 2024, the PwC survey gathered the opinions of 504 Thai consumers regarding shopping trends and factors shaping purchasing decisions, including emerging technologies, climate change, and social media.
The findings suggest that Thai consumers will prioritise necessities over luxury items in the next six months, with 69% planning to increase spending on groceries, followed by health and beauty products (60%) and electronic devices (52%).
Thai consumers
The survey also highlights that four in 10 Thai consumers are willing to switch from their preferred brands to cheaper alternatives if they perceive better value. Additionally, 51% are comfortable spending on travel, 50% on home improvements, and 46% on clothing and footwear.
Thai consumers, who are among the top users of the internet and social media globally, align with PwC’s findings. The survey found that 73% have purchased products through social media platforms, a figure higher than the Asia-Pacific average of 56% and the global average of 34%.
According to the Digital 2024: Thailand report by We Are Social and Meltwater, there are 63.2 million Internet users in Thailand, with most spending nearly eight hours a day online. Additionally, there are more than 49 million social media users in the country.
Despite their enthusiasm for social media shopping, Thai consumers express significant concerns about privacy and data security. The survey found that 77% are worried about privacy and data sharing, rating companies and social media platforms as the least trustworthy in this regard.
Pisit emphasised the importance of data protection for businesses to build consumer trust.
“Businesses must prioritise data protection to build consumer trust, as Thai shoppers consider data protection to be the most critical aspect for businesses.”
Sustainable products
Even amid economic concerns, Thai consumers are increasingly prioritising sustainable consumption. A notable 95% of respondents reported being affected by climate change in their daily lives, with over half (58%) opting for sustainable products and willing to pay up to 11.7% more on average. This is higher than the global and Asia-Pacific averages of 9.7% and nearly 11%, respectively.
Pisit noted that sustainability initiatives will continue to influence Thai consumers’ purchasing decisions.
“Thai consumers are now more broadly aware of climate change issues and are willing to pay a premium for eco-friendly products. Therefore, retailers should develop strategies that balance consumers’ purchasing power and environmental impact.”
The PwC report found that waste reduction and recycling (45%), eco-friendly packaging (37%), and positive impacts on natural and water conservation (35%) are the most significant factors influencing consumer decisions.
Additionally, 79% of Thai consumers have expressed interest in owning electric vehicles (EVs) or hybrid electric vehicles (HEVs) for sustainable transport, reported Bangkok post.
Pisit suggested that retailers integrate online and offline marketing channels and leverage GenAI technology to attract customers and boost sales.
“At the same time, investing in cybersecurity should be considered to build customer trust and brand loyalty.”
