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4 Dec 2020

Thai Economy

New Year, 2021: Bangkok Residents to Spend Almost the Same as in 2020 at THB30 Billion, Thanks to Consumption-Boosting Programs (Current Issue No.3164)


           A recent poll conducted by KResearch shows that if there were no government consumption-boosting programs, most Bangkok residents would have spent only THB5,300/person on average during the upcoming 2021 New Year holiday season due to concern about the prolonged coronavirus (COVID-19) pandemic abroad and household debt. KResearch expects that the overall spending during 2021 New Year will reach THB30.05 billion, which would be almost on par with that reported in 2020, supported by the government's “Shop Dee Mee Kuen" (Shop-and-Payback) and “Khon La Krueng" (Co-Payment) programs, which are intended to help ease the financial burden and boost purchasing power of consumers during the upcoming New Year. If such measures had not been introduced by the government, New Year spending may have contracted from that in 2020.      

          Bangkok city dwellers intend to cut expenditures on most activities, with the exception of those for parties, F&B, personal care products and gifts. Their expenses on such matters are expected to increase due to the government's consumption-boosting programs above.   

           If the government had not issued such programs, Bangkok residents in all income brackets would have cut or avoided spending during the 2021 New Year. Meanwhile, the government's consumption-boosting programs and marketing promotions of retail stores are found to have helped induce Bangkok residents to spend more during the year-end holiday season, suggesting that their purchasing power remains fragile, and this may present a challenge to the related businesses.

              ​Meanwhile, Bangkok residents intend to spend more via online channels and cook at home or use food delivery services rather than dine out at restaurants. Most of them plan to purchase footwear, clothing, cakes, desserts and snacks, though they may cut expenditures on gift baskets. The poll also shows that the marketing strategies of retail stores have a substantial impact on their buying decision. To induce consumer spending, retail businesses are urged to devise marketing strategies that meet the consumers' needs via each channel.  

Thai Economy