We, at KResearch, have conducted a behavioral survey on 400 parents, covering major occupations and income levels in Greater Bangkok, during the 2018 back-to-school season and found that 36 percent of the respondents are not worried about their finances while a majority of 64 percent are concerned about their cash flow largely because of their daily living expenses and increased debt burdens.
During the 2018 back-to-school season, most respondents said they have not lowered their children's education spending. Most respondents' expenditure items remain unchanged from last year, except for school uniforms, because most said they have spent less on this item. However, a majority of respondents said they have spent more on their children's extra-curricular activities such as foreign language, music, sports and computer training.
KResearch expects that parents in Greater Bangkok will spend around THB27.5 billion during the 2018 school year, up 1.9 percent YoY, showing a decrease in spending growth because the main spending items such as tuition remain unchanged. Additionally, most parents are spending cautiously on education-related merchandise, namely, school uniforms, books and school supplies by choosing cheaper products or buying in less quantity, compared to last year. In addition, the number of students in the 2018 school year is expected to be static versus the figures in 2017.
As education-related manufacturers and distributors are required to cooperate with the government in freezing education-related merchandise prices, simultaneously parents are trying to save their money by looking for cheaper products, the business competition during the 2018 back-to-school season has, therefore, intensified. In line with the trend of applying new technology in their teaching, some tutoring schools have gradually been closing their branches and implementing modern tools such as e-learning, multimedia and online media to tutor students. As for after-school recreation institutions, they are likely to benefit from the trend that parents have attached greater importance to their children's social skill development. Thus, there are opportunities for these institutions to increase their marketing activities to expand their student base.