Reaching the Consumer in Thailand

Overview by

Marketing Opportunities

Growing Sectors

In addition to having one of the most advanced food processing industries in Southeast Asia, which has capitalized on bringing value-added products to markets in Europe, Japan, China and the United States, Thailand is also the world’s largest producer and exporter of several commodities, including rubber. Indeed, agro-industries that have selected to locate in Thailand have achieved a significant competitive advantage in having an easy access to their essential raw materials. Today the country boasts having 9,000 food processing companies in an industry that continues to enjoy significant growth thanks to consumers habits.

Despite a poor economic performance in Thailand towards the end of 2008, spending on pet food and pet care products continued to grow strongly in 2008 over the previous year with Urbanisation and smaller households drive strong demand for pets.

Consumer Behavior
 As accommodation is plentiful and thus relatively cheap in Thailand, Thai consumers spend less on accommodation than the majority of their western counterparts. Accordingly, the larger portion of disposable income that may be spent on goods increases the country’s attractiveness to retailers. On average the Thai consumer spend around 30% on food, beverages and tobacco, 18% on housing, 18% on transport and communication and 13% on recreation, reading and education, 12% on clothing and footware and 8% on medical care and personal care.
Consumer Profile and Purchasing Power
The growth of the Thai citizen average revenues is a driver for the economy. The top 10% of the population in term of revenues and the middle class are earning more money and is willing to spend on western type of products. The minimum wage has also increased recently. Consequently, the Thai retail market is highly competitive, but also very dynamic and there is still potential for further growth as the economy continues to grow. With its large population and unsaturated consumer market, Thailand is still an attractive market for foreign retailing investment.
Consumer Recourse to Credit
People in Thailand rely heavily on credit to finance consumer goods, new pickup trucks and any commodities.


Consumers Associations
Consumer association directory

Media in Which to Advertise

TV stations are numerous and watch to by a large portion of the population. It makes it a very interesting media to market products and services.

Main Televisions
Thailand has a well-developed media sector, especially by Southeast Asian standards. Compared to other countries in the region, the Thai media is considered relatively free, although the government continues to exercise considerable control, especially over broadcast media.

Main Newspapers
Online Newspapers
Asian Tibune
The Nation
Direct marketing and mailing technics are very efficient ways of reaching potential clients in Thailand.
Radio stations are numerous and listen to by a large portion of the population. It makes it a very interesting media to market products and services.

Main Radios
Portal of Thai radio stations.
New Technologies (E-Marketing, SMS, etc.)

Main Advertising Agencies
The advertising association of Thailand
Online advertising agencies
Thai Advertising Agency
Advertising agencies Directory

Main Principles of Advertising Regulations

Alcohol advertising in Thailand is effectively illegal under voluntary observance of a ban by Thai advertisers. Internet advertising remains legal. Although not signed by King Bhumipol Adulyadej After the 2006 Thailand coup in September, the ban has been voluntarily observed by Thai broadcasters. In the view of advertisers the ban will slash advertising revenue around 2 billion Thai Baht, a loss most acutely felt in the wake of the beer garden festival. Nonetheless this regulation would only affect revenue short-term, given that alcohol advertising represents only 2-3% of the total advertising expenditures through all media.
Cigarettes volume and current value sales continued to decline in 2007, as rising health awareness, anti-smoking campaigns and the stricter enforcement of regulations on smoking in public encouraged more people to cut down or kick the habit altogether. the Thai government stepped up efforts to discourage people from smoking, particularly the youth population.
The Advertising Control Division of the FDA controls marketing and advertising regulations. To date, there have been many complaints that document forgery and bribery undermine the advertising approval process. Proposals for advertisements, for example, are often forwarded to FDA officials through advertising agencies hired by manufacturers or importers of the product. To seek fast approval, these agencies have often been willing to pay "tea money" to officials or add misleading marketing information to convince the public into having full faith in their products.
Other Rules
Stricter advertising standards in the real estate sector, which are monitored and enforced, are essential in building investor confidence. Developers must live up to the claims they make and this includes promises made about off-plan facilities and transport links.
Use of Foreign Languages in Advertisement
Thai. English is also frequently used in advertising.
Organizations Regulating Advertising
Ministry of Information and Communication.

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