Despite the sluggish Thailand economy and weak consumer purchasing power, people in Bangkok are still setting aside money for New Year gifts.
This year though, they are tending to be more selective this year when it comes to who and what to give, according to research from KasikornBank’s KResearch department.
Some will be receiving work performance bonuses around the year end, and as a result it is expected that shopping for New Year’s presents should continue to expand and be comparable to last year’s growth.
KResearch said that it expects that Bangkokians’ spending on gifts for the 2016 New Year holiday will reach around THB 9 billion, growing 5 percent year-on-year. Of that, THB 5.4 billion would likely be business ‘goodwill’ purchases while THB 3.6 billion would be by individuals for those close to them.
Business gifts are important to the market, it said, since the sector represent 60 percent of the total gift-buying market. This year companies have allocated smaller budgets and will be more specific about who they will be giving gifts to, and what kind of presents they give.
Therefore, retailers should adjust their marketing approaches to offer made-to-order items with good quality and unique designs, thus promoting their brand and adding value to the gifts given, as well as the givers’ prestige.
At modern trade centers, e.g., shopping malls, supermarkets, hypermarkets, etc., they may offer more premium-grade gift items as well as convenient, one-stop service to prospective customers.
KResearch added that as for individual shoppers, products that should perform well would likely be those offering great value for money and promote health. Retailers, especially modern trade outlets, may promote value along with product design, packaging and/or individuality in their products to boost sales and attract customers.
