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22 Sep 2016

Thai Economy

“Kin Jae”, 2016: Spending in Bangkok May Top THB4.5 Billion… Market Opportunities Lie with New Generation of Consumers (Current Issue No. 2775 Full Ed.)

We at KResearch project that Bangkok residents will spend over THB4.5 billion, up 7.2 percent YoY, on “Jae” food and beverages (F&B) during the forthcoming “Kin Jae” festival, October 1-9, 2016. The increase is expected to be attributable to more days that adherents will observe the festival this year, plus rising “Jae” food prices. As a result, spending on “Jae” F&B will likely rise to THB300/person/day, versus THB270/person/day reported during 2015. The fact that more of the Bangkok populace are planning to consume “Jae” meals due to the health conscious trend is another factor that should contribute to higher spending this time around.

Meanwhile, a majority of Bangkok city dwellers will continue to dine out at restaurants serving “Jae” cuisine this year, though it has been found that a new generation of consumers has begun to purchase “Jae” F&B from new channels, notably convenience stores and/or supermarkets, and even low-calorie or clean “Jae” food choices via online delivery services.

Such consumers, especially office workers, should be focused on by “Jae” F&B businesses, because they are health conscious and have high purchasing power. Besides, they are willing to try “Jae” dishes to their liking, e.g., foods that look appealing, are tasty and nutritious, via new channels, including delivery service. As a result, this consumer segment should be a lucrative market for functional food businesses offering low-calorie food online with delivery service, as well as other organic F&B and ready-to-eat “Jae” meals.

One very important consideration for businesses towards tapping into this rising consumer segment will be to meet their lifestyle needs. This can be achieved using social media for marketing purposes because it helps businesses increase brand awareness and broaden their customer reach. Delivery service should be considered, too, since it meets the needs of busy Bangkok consumers wanting convenience in obtaining meals.

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Thai Economy