Chinese New Year 2022: Spending expected to stall as Bangkokians focus on budget control amid surging product prices (Current Issue No.3303)

      KResearch views that the gradual rise in product prices and living costs will continue to pressure Bangkokians’ spending during the Chinese New Year Festival in 2022. While the Omicron outbreak may have generated concern among consumers, some Bangkok residents of Chinese descent still plan to celebrate the festival and participate in related activities, though the festivities will likely be organized with caution and adjusted in line with market conditions and purchasing power.

      Due to the aforementioned factors, KResearch projects that Bangkokians’ spending during the Chinese New Year Festival in 2022 will amount to THB 11.79 billion, a relatively stable level compared to the 10.4-percent contraction seen in the previous year, as budgets are still tightly controlled. The bulk of this spending is expected to be on spirit offerings, a major feature of the festival. Although prices of goods will tend to increase, change in spending behavior will likely be seen in other areas. For instance, larger numbers of people may  participate in merit-making activities/ go on trips, but their budgets will be cautiously allocated, including a budget reduction in lucky cash gifts in terms of both the amount and the number of recipients. The spending can be broken down into the following groups: spirit offerings at THB 6 billion (growth of 7.1 percent), tourism/merit-making/dining out at THB 3.05 billion (growth of 2.8 percent), and lucky cash gifts at THB 2.74 billion (a contraction of 14.8 percent).

    In order to boost sales during the Chinese New Year Festival in 2022, businesses will need to come up with marketing plans and new services that meet consumer demands, especially price promotions and additional services that would provide shoppers greater convenience. Looking ahead, the spending behavior and perceptions of Thai Chinese consumers towards the festival will tend to evolve with the present situation and their current purchasing power. Such are the challenges facing operators whose business in part hinges upon the Chinese New Year Festival in the years to come. To maintain sales growth in the upcoming period, marketing strategies must be appropriately adjusted across all sales channels, physical and online, to keep up with the present consumer behavior and market conditions.