Display mode (Doesn't show in master page preview)

2 Oct 2020

Econ Digest

“Let’s Go Halves” program: to reduce cost burdens for consumers and increase sales volumes for retail stores

The new stimulus package called “Kon La Khreung” (Let’s Go Halves or the government’s 3,000-Baht cash handout program), effective October-December 2020, sets conditions that differ from previous spending stimulus measures. In addition to the subsidy that is capped at 10 million people and at THB3,000 per person, there is also a limit on daily spending at THB150, which means that the products that can be purchased are low-priced necessities. This program is aiming to reduce cost burdens for consumers and also to support small retailers to bolster their sales during the final quarter of 2020. Moreover, the program may also benefit related suppliers and farmers, as well as boost employment in various businesses within the supply chain. However, those opportunities and benefits will depend on factors such as the number of participating retail stores, the dispersion of retail stores in different areas and their operating hours.  

 

A survey conducted by KResearch on spending under the Let’s Go Halves program shows that over 64% of the respondents intend to spend the full limit of THB3,000, while 36.0% of the respondents plan to spend less than THB3,000, with goods to be purchased being mainly daily necessities such as personal care products, food and non-alcoholic beverages. More than 56.0% of the respondents intend to spend the same or close to the same amount as they would have spent had there not been any stimulus measures. However, 44.0% of the respondents plan to spend more than the amount they would have spent had there not been any stimulus measures. They may also plan to delay spending until the measure is in effect.

 

Given this, KResearch expects that the Let’s Go Halves program will help support retail businesses somewhat during 4Q20. As a result, overall retail sales may shrink only at 7.2%YoY in 4Q20, against the contraction of 8.9%YoY projected previously. Cash flow is expected to be distributed to participating traditional retailers, though participating stores may have to put preparations in place such as maintaining sufficient inventories of new and quality products while also introducing marketing promotions to induce consumers to spend more. Thanks to this stimulus measure, retail businesses may only shrink 6.0%YoY during 2020.

Scan QR Code


QR Code

Annotation

This research paper is published for general public. It is made up of various sources. Trustworthy, but the company can not authenticate. reliability The information may be changed at any time without prior notice. Data users need to be careful about the use of information. The Company will not be liable to any user or person for any damages arising from such use. The information in this report does not constitute an offer. Or advice on business decisions Anyhow.

Econ Digest