A poll conducted by KResearch on spending by Bangkok residents of Chinese descent during the 2018 Chinese New Year shows that their purchasing power, in particular that among middle-to-high income earners has begun to improve, thanks to the recovering Thai economy. However, the current spending sluggishness seen among low-income earners may not benefit businesses related to the Chinese New Year, though this will depend on their priorities toward activities to be carried out during the festival.
The survey also shows that Thai Chinese residing in Bangkok will be spending more on merit making, traveling and giving cash as gifts during the upcoming Chinese New Year, while their spending on votive offerings should be the same as last year because that tradition is not strictly observed nowadays, and the cost of such items have risen substantially.
Given this, we at KResearch forecast that spending by Bangkok populace of Chinese descent during the 2018 New Year will reach perhaps THB13.44 billion, increasing 4.3 percent YoY.
Looking ahead, we expect that spending for votive offerings should drop because younger Thai-Chinese, who are to inherit this important ceremonial role, may not strictly observe this tradition as closely as their predecessors have. This situation, therefore, presents a challenge to votive offering merchants toward aligning their strategies amid changing market conditions, especially vis-à-vis attracting younger Thai Chinese consumers who are less inclined to spend as much on observing the old tradition, especially those who do not intend to continue with such observances. Eventually, we may see businesses selling votive offering materials switching their customer target toward foreign tourists, in particular overseas Chinese, who may shop at their stores when travelling here during important Chinese traditional family holidays.
Enter the code from the poll