Smaller Cities Ready to Shop
Jun 7, 2019
Brands should not underestimate the purchasing power of secondary cities in Thailand like Lampang and Sakon Nakhon and avoid focusing solely on marketing in Bangkok, according to a report by Mindshare Thailand.
Natha Piyavirojsthien, Director of Mindshare Thailand, said the company's study, HUNT 2019, found Thailand has a high mobile internet penetration in second-tier cities where residents search for products and services available in more urban areas via e-commerce.
The study conducted in-depth interviews of consumers in Lampang, Sakon Nakhon, Nakhonsawan and Nakhon Sri Thammarat.
Consumers in these cities choose content basd on their interests and convenience. Online platforms make products more accessible, especially with regards to skincare, cosmetics and other brand name products.
Natha said marketers should not overlook this segment, focusing exclusively on the Bangkok market. Brands should also consider demographic factors other than gender, age and location to target customers.
Marketers should work on the behavioural data of consumers and bring good experiences to customers, particularly through mobile payments that make the process more simple and reliable. The study found these users still prefer cash payment on delivery, but the propensity to use mobile payment has increased.
The study also found although online purchases are growing, some consumers still need interaction with people to build confidence in payments.
Brands need to be visible to users both online and offline, the latter throught events and by embracing local communication that is appropriate for individual communities.
Consumers are more likely to trust products and services recommended to them by social media contacts, who usually comprise extended family members.
Respondents said they do not want to live or work in big city, but still want to have access to quality goods and services people from larger cities can find. E-commerce has fulfilled this desire for many consumers in these areas.
These consumers have the freedom to choose their lifestyle, which is reflected in career choices, content and media based on their interests and time.
Media consumption by this group has changed. Age is not the main factor in choosing consumer media. E-sports and live broadcasts are one of the rising trends among online video content.
"We found that youngsters are not only group to purchase online," Natha said.
"Elders are also tech savvy, while those youngsters still consume traditional media not solely online."
Brand should allow consumers to experience and access both online and offline channels.
Marketers should focus on a target group to communicate with and understand their consumer behaviour, she said.
Marketers should focus on individuals and reach out these groups by using data footprint information, said Natha.
Information from the Bangkok Post on June 6, 2019