Chinese New Year spending to take a dip: centre
Festive spending among Bangkokians during the upcoming Chinese New Year (January 25) is expected to decline 3 per cent year on year to Bt13.15 billion, due mainly to shrinking purchasing power and the looming drought crisis, according to the Kasikorn Research Centre on Monday (January 13).
The decrease in spending will affect several businesses related to the festivities, including retail, restaurants and goldshops. Thai-Chinese tend to eat out at their favourite restaurants, going on trips and buying gold ornaments and jewelries as gifts for their relatives in the period.
The centre broke down estimated spending during the 2020 Chinese New Year festival as follows: Bt5.9 billion for food offering at ancestor’s shrines, Bt3.75 billion for traveling/making merit and Bt3.5 billion as gift money or ‘red envelope’ for children and grandchildren.
It also mentioned that the drought problem is worsening and will affect the prices of meats and fruits, both on-demand items during the period. It is expected that the prices of certain fruits could go up by 25-30 per cent, while meat prices will rise 5-20 per cent.
The center concluded that one of the major challenges faced by businesses related to the Chinese New Year celebration is the change in consumer behaviours.
“New generation consumers tend to be more detached from ancient traditions , while mid-to low-income earners often decide to skip celebration to save cost”.