Bangkok (Thailand) – July 1, 2015 – GfK reveals that while Thais remain traditional, they also embrace urbanization and innovation. Given the changing lifestyle and the rapid spread of new technologies, GfK recommends that companies focus on "globathaization," "share of life," and multi-platform marketing and communication for their business success.

Urbanization is rapidly changing consumer behavior. It is estimated that by 2050, 75% of the world's population will live in cities. This is leading to a growing middle class, particularly in Asia. According to the Organisation for Economic Co-operation and Development (OECD), the number of middle-class individuals will increase from 1.8 billion to 4.9 billion by 2030. Asia will account for a significant share of this middle class, at 66%. Based on the latest findings from several GfK consumer studies, Daranee Charoen-Rajapark, Chair of the Advisory Board of GfK Thailand, recently identified three areas where consumer behavior is changing and outlined how companies can respond to these changes and capitalize on the opportunities they present.

The first area of ​​change concerns values. Based on a comprehensive values ​​analysis by GfK, seven globally relevant value types were identified: Achievement-oriented, Traditionalist, Caring, Socially Rational, Survival-oriented, Self-determined, and Hedonistic. There are significant differences between global and Asia-Pacific urban markets: While 31% and 16% of respondents in the global market are classified as Achievement-oriented and Traditionalist, respectively, the figures are 41% and 22% in the Asia-Pacific region.

Achievement-oriented individuals, the predominant type in Asia, place great value on achieving and displaying social status and may prioritize their own interests over those of others. Traditionalists, on the other hand, believe their inherited way of life is the best, are guided by religious beliefs and cultural traditions, and adhere to prescribed rules and norms in most areas. In the Asia-Pacific region, India and China have the highest proportions of achievement-oriented individuals, at 67% and 40% respectively, while Thailand has up to 30%. Although the vast majority of Asian countries have the highest proportion of achievement-oriented individuals, Thailand is an exception with a very high proportion of traditionalists at 44%. In general, traditionalists tend to resist change and exhibit strong brand loyalty, but their willingness to innovate may be low, which could be one of the reasons for Thailand's low level of innovation.

The second area of ​​change concerns lifestyle. Work now occupies a large part of the lives of the Asian middle class. In Thailand, full-time employees work the most hours, nearly 51 per week, compared to the global average of 36.3 hours. India is the only other Asian country with a high number of working hours at 50.6, while it is lower in China and Indonesia at 45.3 hours each, and even lower in Japan at 37.3 hours. With a growing urban middle class facing changing lifestyles and the challenges of urbanization, such as pollution and quality of life, there remain strong opportunities for products in the areas of nutrition, entertainment, health, and safety, as well as products that promote comfort, enjoyment, and well-being. As time becomes increasingly scarce and safety awareness grows, purchasing familiar and trusted brands is becoming ever more important for 75% of Thai consumers.

Despite their traditional outlook, it is paradoxical that Thailand was among the top ten fastest-growing technology markets in 2015. The third area of ​​change is technology, where Thai consumer behavior is shifting most dramatically. According to a nationwide GfK survey in Thailand of 989 consumers aged 11 to 70 (May 2015), 70% own a smartphone, 23% a traditional mobile phone, 18% a tablet, 17% a desktop PC, 13% a laptop, and 12% an office PC. Of those who use the internet, 77% do so via their smartphone, 53% at home, 33% at school/university/office, and 24% via a Wi-Fi hotspot. The growth of the technology market in Asia-Pacific countries has been driven by the low prices of smartphones at the expense of other products such as compact cameras, portable media players, and mobile navigation systems. Since 2010, the smartphone market in Thailand has experienced astronomical growth of 816%, reaching a total value of USD 3,156,736,864. In comparison, the PC market grew by only 20% to USD 694,577,299. The market for the relatively new tablet is also growing rapidly, now reaching USD 378,330,980 – only slightly less than the smart TV market at USD 407,968,511. Thanks to the strong growth of smartphones, tablets, and digital devices, the Thai middle class has a mobile lifestyle and places a high value on connectivity. Key internet activities include social networking (58%), watching videos/uploaded programs (43%), email (38%), watching television and chatting (both 22%), and reading online newspapers/magazines (21%). At the same time, 15% of users are searching for travel information and 11% are buying products online. Watching television online is particularly popular among young viewers aged 11 to 19, at 28%. Among smartphone, computer, and tablet owners, 25%, 30%, and 37%, respectively, use their devices to watch television. Ultimately, however, 61% of consumers state that television is the most attractive, memorable, and trustworthy medium, and about half still believe that television is the medium of the future. This confirms that television remains the most influential media platform.

In light of these shifts in consumer behavior, Daranee recommends that companies expand their strategies to include a "globalization of Thailand." This approach leverages the benefits of globalization while respecting the deeply rooted beliefs, traditions, and culture of the Thai population. The goal is to gain a "share of life," rather than just a share of the money, by playing a meaningful role and improving consumers' quality of life. Multi-platform marketing, communication, and the integration of mobile strategies are key. Building on traditional technology products, GfK predicts that companies focused on connected value creation (the convergence of technology, connected devices, and mobility needs)—such as wearables, health and fitness devices, and smart home technology—represent significant growth areas.

About GfK: GfK is the trusted source of relevant market and consumer information, enabling its clients to make more informed decisions. More than 13,000 market research experts combine their passion with GfK's long-standing experience in data science. This allows GfK to combine key global insights with local market information from over 100 countries. Using innovative technologies and data science, GfK transforms big data into smart data, helping its clients strengthen their competitiveness and expand the customer experience and choices.

Contact information: GfK Thailand, 1126/2 Vanit Building II, 24th Floor, New Petchaburi Road, Makkasan, Bangkok 10400, Tel. +66 2255 8515, Web: www.gfk.com