The rising cost of living has affected the purchasing decisions of consumers in the region, including Thailand, Indonesia and Vietnam, changing their behavior towards buying essential products. Reduce expenses on luxury items ranging from fashion accessories, clothes, shoes, furniture and gadgets, while the use of artificial intelligence or AI is not yet very effective. Because consumers do not trust recommendations, offers, and promotions from AI that is analyzed from past purchase history. The 13th edition of the EY Future Consumer Index (FCI) survey surveyed the opinions of more than 22,000 consumers in 28 countries by There were 3,000 consumers in the ASEAN region and 1,000 consumers in Thailand. It was found that 95% of Thai consumers (89% in ASEAN and 94% globally) were concerned about the rising cost of living, with 62% Thais. (55% in ASEAN and 51% globally) reduce spending on non-essential goods and services. The product category that Thais consider reducing their expenses the most is fashion accessories (65% in Thailand, 59% in ASEAN and 61% worldwide), followed by Clothing and shoe categories are second (57%), followed by home furniture products are third (53%), while consumers in ASEAN and around the world Reduce costs for products such as toys and tools. Gadgets are second (47% in ASEAN and 51% worldwide), followed by home furniture in third place (45% in ASEAN and 41% worldwide). Narissara Pattanapiboon, Head Business Advisory Services Division, EY Thailand, said that economic pressures have caused consumers to be more careful with their spending. Product manufacturers and retail business operators (CPR) must adjust their business plans to meet customer needs. By increasing the use of online channels Delivery service available and offer a wider range of products to stimulate customer spending. “Big price reductions stimulate purchasing power. both online and offline Because it is an activity that can continually attract consumers, 72% of Thai consumers (77% in ASEAN and 61% worldwide) say they are interested in discounted products. As many as 92% of Thais (71% in ASEAN and around the world) choose to wait until the product is reduced in price. to buy” However When considering the specific information of Thailand From the FCI study report comparing data between 2022 and 2023, it was found that the pattern of purchasing products has clearly changed. Consumers’ preference for purchasing products online increased by 21%, while purchasing products at stores decreased. 16% “Selecting products through online channels is continuously increasing. It is a business opportunity that requires retailers to develop multi-channel sales strategies. (Omnichannel) including leveraging technology such as AI and Big Data to increase sales, profits and create better customer loyalty in the brand.” However From a survey that asked how AI affects consumer behavior. 16% of Thai consumers (19% in ASEAN and 18% globally) said they have good knowledge and understanding about AI and the use of this technology. But they trust AI-generated recommendations less, with less than a third of respondents (22% in Thailand, 29% in ASEAN, and 21% globally) saying they trust AI-powered promotions and offers, while 21% In Thailand (28% in ASEAN and 22% globally) say they do not trust product recommendations. According to their past purchasing history, “The challenge with technologies such as AI and Big Data is building trust in maintaining data privacy and transparency in how consumer data is collected and used. The future of using AI technology in the online shopping business Part of this depends on using innovation and building trust in a balanced way. Retailers must pay attention to the security of customers’ personal information. Including transparency in the use of insights gained from our analysis. AI” Click to read the column. More “Cybernet Articles”
