Bangkok residents to celebrate the Year of the Tiger with an estimated spending of THB30.5 billion

        The New Year 2022 will likely have a more festive atmosphere than the previous year, thanks to improvements in the COVID-19 situation and better access to vaccines, as well as the government’s measures to boost purchasing power and accelerating promotional campaigns, but the spread of the Omicron variant of COVID-19 will still need to be closely monitored. KResearch still maintains a cautious view that overall spending by Bangkok residents during the New Year 2022 will reach approximately THB30.5 billion, or a growth of 7.0%YoY, due to the low base of the previous year and inflation leading to higher goods prices and household cost of living (assuming no further severe outbreaks of COVID-19).

        Merrymaking and shopping should grow as restrictions on economic activities are eased; more than 60% of KResearch survey respondents intend to celebrate at a restaurant during the New Year. Average spending on merrymaking is expected to rise from THB2,000 per person last year to THB3,000 per person this year, which is in line with the shift in consumer behavior during the New Year 2021 when the majority bought ingredients to cook at home or order food deliveries. The shopping for goods and gifts at the end of 2021 is likely to see a revival as compared with the previous year. This is mainly due to the longer opening hours of shops and department stores and consumers benefiting from the government’s stimulus measures and price promotions by various businesses. This is in line with KResearch’s findings that 70% of respondents plan to spend roughly the same or more of their budget on purchases as the previous year, and more than 20% of respondents will spend more if the government issues additional stimulus measures. However, Bangkok residents are still cautious about spending, with the majority of spending being on necessities. Regarding sales channels, most consumers choose to shop online because of frequent promotions and fast home delivery services, but more than one-third of respondents plan to shop at department stores and hypermarkets as outdoor activities.

       Challenging factors that may affect business sales during the New Year period are subdued purchasing power amid the rising cost of living and intense business competition. For this reason, operators must adjust to boost sales, particularly through price promotion campaigns, effective cost management and increasing liquidity so that the business can continue to operate during this period.