Behaviour of rural consumers changing: study

FRIDAY, SEPTEMBER 18, 2015
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Behaviour of rural consumers changing: study

As retail businesses penetrate deeper into the provinces, consumers' purchasing behaviour in those areas and along the borders is being transformed, opening up more opportunities for brands to engage with them, according to Kinetic, an out-of-home media

Country manager Surachet Bumrongsuk told The Nation yesterday that consumers in different areas had different purchasing patterns.

For example, shopping experience and convenience are top priorities in Greater Bangkok but not in upcountry urban and rural areas. However, the common interest among consumers in all areas is store location.

Basing the survey on Tesco Clubcard holders' behaviour gathered by unnhumby, the Nielsen (Thailand) Consumer and Media View Index in first quarter of this year found that people in upcountry urban areas considered reasonable prices and variety of products as key factors, while consumers in rural areas looked to convenience and product variety.

Bangkok still sees the most spending by shoppers at Bt704 per visit. Each visit, there are about 10 items per basket.

The popular shopping categories are vegetables, beverages and food supplements, according to the latest update in June by Dunnhumby, a UK-based customer-science company, he said.

Spending in the North including Chiang Mai and Nakhon Sawan was Bt645 per visit with at least nine items in the basket.

Those in the Northeast including Udon Thani, Nakhon Ratchasima and Khon Kaen paid Bt569 per visit with nine items per basket.

In the South, such as Phuket, Songkhla and Nakhon Sri Thammarat, it was Bt675 per visit with about nine items.

To prepare for economic integration under the Asean Economy Community, companies should make an effort to understand the purchasing behaviour of consumers in neighbouring countries such as Myanmar, Laos and Cambodia.

According to Dunnhumby’s study Myanmar buyers at the border provinces of Chiang Rai, Tak and Ranong spent Bt675 per visit at a Tesco store with at least nine items per basket. Men dominated spending. They preferred shopping reseller and house brands.

Laotian buyers at Tesco stores in Chiang Rai, Nong Khai, Mukdahan and Nakhon Phanom spent Bt638 per visit with about 10 items per basket. Three out of four customers were women. They liked buying convenient fashions and clothes.

Cambodian customers who crossed the Thai border to shop at Tesco Lotus in Si Sa Ket and Sa Kaew spent Bt610 per visit on eight items per basket.