Thailand’s economic policies over the past few decades have addressed the expansion of both local and foreign trade and, thereby, greater competitiveness; the improvement of education and skill development; and measures toward enhancing the effectiveness of the public sector and government bureaucracies. Therefore, the country’s economic potential has improved vastly. The World Bank improved the income categorization of Thailand from a lower-middle income economy to an upper-middle income economy in 2011. This illustrates the growth of Thailand’s upper-middle class.
The spending patterns of the past five years indicate a preference for luxury goods over normal goods by a larger proportion of Thais. This was also witnessed in the wider ASEAN region. Boston Consulting Group (BCG), a global management consulting firm revealed that the upper-middle class constitutes almost twenty five percent of Thailand’s population in the late-2016. ‘Hi-So’ Thais lead luxury consumer-culture in Thailand, and many young, affluent Thais aspire to progress to this newly recognized socioeconomic class.
BCG’s research in the area of how global firms can cater to the upper-middle class is condensed into three main focuses:
- Digital media and e-commerce: The upper-middle class spends a considerable portion of time on social media interaction and e-commerce platforms. Their purchasing decisions are influenced by what is advocated positively through social media. The rich, interactive nature of iTS COOLER’s luxury online platform allows you to access high-end consumers in Thailand and the ASEAN region with the greatest of ease!
- Glocalization: Local and global perspectives are required to cater effectively to the upper-middle class market. This group travels frequently and are impacted by their experiences out of home, but they also seek the comfort of local culture. iTS COOLER enables this by offering international luxury brands the opportunity to place video advertisements, text advertisements translated into Thai or English, and offering live support to your consumers in Thai and English.
- Younger spenders: Those below 35 are recognized as the highest spenders within the upper-middle class group in the Asian region. Appealing to them will derive the best results for international luxury brands. iTS COOLER’s sleek design, lifestyle blog and technological compatibility is creating great interest within this group!
iTS COOLER’s knowhow can help your luxury brand effectively target the upper-middle class in Thailand and the ASEAN region.