Gen Z Thais love to spend, yet tight budgets have pushed more than 70% to switch to cheaper brands for food, drinks and general items, according to research by the marketing agency VML Thailand.
The study identified a ‘consumer paradox’ among Thai shoppers, revealing a web of contradictory behaviours and beliefs that cause brands to lose between 35% and 55% of revenue opportunities.
The research is based on VML’s analysis of its global studies such as ‘The Future 100’ and ‘Future Shopper’, a related survey of more than 45,000 global consumers and cross-checking of data from partners such as Kantar and Euromonitor, aiming to decode the complex psychology of modern Thai consumers.
The report found four characteristics reshaping Thailand’s marketing landscape. The first is that despite economic pressures, Gen Z Thais show a strong desire to spend on food, beverages and personal expenses.
However, this desire clashes with a limited capacity to spend, leading more than 70% to seek cheaper brands.
Nearly half of this group also wants to save and invest for the future.
In contrast, Gen X and Baby Boomers, who have better financial standing, focus on saving but are still willing to spend on health products and enjoyable experiences.
Second, people feel the need to disconnect and escape digital overload, yet they are equally driven to reconnect and stay socially engaged.
While more than 90% of Thais are constantly connected to the internet and social media, there is a growing sense of ‘technology fatigue’, noted the study.
Nearly 80% of Thais are considering controlling their data consumption, and 71% report feeling tired of technology. Some 38% of the population have sought real-world activities for better mental health.
However, Thais still view technology as a crucial tool for improving human connections and life opportunities, according to VML.
The third finding is consumers demand authenticity and real value, yet still crave the excitement and allure of the ‘wow’ factor.
Trust is a major issue, with more than 80% of Thais worried about the prevalence of fake news on social media, fuelling demand for authenticity (64%) and trustworthiness (70%) from brands, noted the study.
However, simply being honest is not enough. Some 73% of consumers also want brands to be entertaining, engaging, and create exciting ‘wow’ moments that make them stand out.
Finally, health and wellness are top priorities for Thais and they are willing to pay extra for products in this category. Surprisingly, the younger Gen Z fears ageing the most, viewing appearance maintenance as a critical investment.
Conversely, 90% of Baby Boomers believe ‘age is just a number’, with over half feeling that life can begin anew after 60.
According to Parattajariya Jalayanateja, chief executive of VML Thailand, even when brand awareness is strong, achieving conversion to sales and customer retention can be a challenge.
The study found all industries suffer a 50-75% drop-off rate during the period when consumers move from considering a product to actually purchasing it, resulting in brands losing revenue opportunities by 35-55%.
She said these characteristics can become opportunities for brands that learn to create deep and sustainable connections.