Tax Deduction-Ray of hope for mushrooming grocery-retailing sector in Thailand: Ken Research
Posted on 16 October 2017 by KenResearch Consumer Products and Retail,
Traditional grocery stores are common in Asian countries. People still prefer small grocery stores in developing Asian countries like India and Thailand. In 2016, grocery retailers in Thailand showed robust growth despite most of the customers were low and middle-income customers and many of them were affected by severe drought in early 2016. Main reason for this significant growth was increasing number of retail stores and heavy promotion by them.
After the severe draught in early 2016, Thai government took multiple measures to simulate growth in market, tax deduction was one of them. People spending more than a certain amount of money were given tax benefit. This promoted consumers to spend more money in the market. On the other end, retail stores also stared reducing price and giving discount on various products to attract more customers. All these measure combined give the required boost and the grocery retailers in Thailand saw significant growth in sale in revenue earned.
According to the market research report "Grocery Retailers in Thailand", this market can be segmented into modern grocery retailers and traditional grocery retailers. Although traditional grocery retailers are leading the market, but modern grocery stores are seeing significant growth rates and are gaining ground. Major players in this segment are Big C, Tesco Lotus and CP All. CP All is leading the grocery stores sales in 2016. It has maximum number of retail outlets. The 7-Eleven stores by CP All are present all over Thailand. Since the competition is so intense, many of the market players have decided to introduce new products. Many others are expanding there reach by increasing number of their stores. Most of the grocery stores are offering various discount offers and offering reward points, which consumers can redeem in those stores while making purchase.
Grocery retailers in Thailand are expected to see significant growth levels in near future. This growth can be attributed to increase in number of stores, introduction of new products, price reduction and various discount offers. Hypermarkets and supermarkets are also expected to see some growth in terms of volume, but eRetailing is expected to grow the maximum with most of the young customers moving towards internet retailing.
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