KResearch expects Bangkokians to spend approximately 29.8 billion Baht during the New Year festival 2020, a contraction of 3.2 percent YoY because people want to save their money and become more cautious in their spending. Moreover, some moved up their spending plans to benefit from the stimulus measures launched by the government and private sectors earlier this year. Nonetheless, if the government and private sectors introduce additional measures to energize the market sentiment during the New Year festival, people may decide to spend more and the overall spending may rebound to the same level as last year.
It is noticed that Bangkok residents have reduced their spending on purchasing gifts and souvenirs, including the items for oneself, their family, corporate customers and gifts for exchange at New Year's parties. The lower gift expenditure is in line with the overall economic performance and dampened purchasing power together with the No Gift Policy campaign, which has increasingly been embraced by companies. The gift basket segment is expected to suffer the most because it is the most popular form of corporate gift.
Marketing events, offering customers discounts and freebies, remain the most popular marketing tactic to attract customers' interest and encourage them to make a purchasing decision. Additionally, although many customers still prefer to shop at brick-and-mortar stores during the 2020 New Year festival, the e-marketplace and social commerce channels have increasingly played an important role and been more popular among customers. Therefore, using the right distribution channel for each product type will help operators to better reach out to their customers.