Local Nuances
Rural and urban shoppers exhibit distinct behaviours
The factors driving FMCG growth in urban and rural areas differ significantly. Consumer spending behaviour in take-home FMCG varies depending on shoppers’ residential location, with most of the growth coming from Bangkok, its metropolitan area (GBKK), and other urban regions.
Rural consumers have increased their basket size, but reduced purchase frequency, and are buying fewer categories compared to the previous year. Even though they shop less frequently, they are purchasing items at significantly higher unit prices. One reason for this is that they may be opting for larger value-pack sizes.
In contrast, consumers in Bangkok and other urban areas display the opposite behaviour: they are shopping more frequently and purchasing across a wider range of categories. One of the key factors influencing this is the 'convenience and variety-driven lifestyle', which allows them to shop anytime, anywhere.
Whether consumers in urban or rural, they are one or the other of this life stage,
Young singles/couples
Families with babies/kids
Families with teenagers/adults
Older singles/couples
Thailand demographic is going towards smaller household, the number of young singles and couples has been steadily increasing over the years and now is about the same as families with kids which eventually would surpass families with kids in the future. When it comes to FMCG spending, families with kids continue to be the largest contributors, but their share has been gradually declining. Meanwhile, young singles/couples and older singles/couples are increasing their FMCG spending over time.
Therefore, not only should Brands adopt different strategies for consumers in different areas, as their purchasing behaviours are entirely distinct, but also prioritizing product portfolio to ride along with demographic shift and category spending growth.
