Thai Consumers Cheque-ing Out
How can we best stimulate the economy? The Thai government recently decided to give a handout to low paid workers in the form of a cheque. This cheque could easily be redeemed at the bank but savvy retailers realised there was an opportunity to boost their own sales and offered a range of incentives for customers. Why were such incentives offered and how successful were they? Voralak Suwanvanichkij investigates.
As part of a recent economic stimulus package, the government distributed THB 2,000 cheques to low income earners. The nation’s largest retailers vigourously rolled out promotional schemes, only to be unhinged by political unrest. How did such retailers fare in the end? Was the programme worthwhile?
Confidence Booster
Consumer spending is inevitably linked to sentiment, including confidence, a reasonable measure of the health of the economy. With the global economic downturn, as well as lingering political troubles, Thailand has seen better days.
Growth in retail spending has dipped. The Fiscal Policy Office reports that private consumption in first quarter of 2009 contracted by 19% (year-on-year), based on real-term value-added tax (VAT) collected during this period.
