Spending by young and rich set for a big Jump

Total spending by young affluent Thais aged 20 to 35 is estimated to surge from US$4.5 billion in 2006 to $7.7 billion in 2016, driven by an increase in their number from 11.7 million in 2006 to 12.7 million in 2016, according to the latest research of MasterCard Worldwide.

The research was conducted by the company's economic adviser, Dr Yuwa Hedrick-Wong, and John Wiley & Sons (Asia) to survey the purchasing power of young affluent people in Asia-Pacific - China, India, Japan, Korea, Taiwan, Hong Kong, Australia and Asean - and predict purchasing power in the next eight years.

"Affluent young people will a play bigger role in the whole Asia-Pacific economy as their income has continued to increase steadily. Combined with their urban lifestyle, many businesses are taking a close look to find business opportunities with the group," Hedrick-Wong said.

"They give importance to the word 'tomorrow' and spend money on themselves. This gives a new business opportunity for all brands that want to attract them. To win their hearts, businesses should employ the same ways of thinking as the young affluent and move at the same fast pace as they do."

He said the young affluent like to spend money on products and services that reflect who they are. Strong financial status, higher levels of education, an urban lifestyle, fewer social limitations and reception of information from around the world are factors that make these people totally different from people at other times, especially in Asia Pacific.

In Thailand, the research found that the percentage of young singles and married people with no children and a tertiary education will rise from 20 per cent in 2006 to over 29 per cent in 2016, while young married people with children under 10 will rise from just under 17 per cent to 24 per cent in 2016. Dining and entertainment among this group was their biggest expenditure in 2006. Total spending reached $2.4 billion (Bt80 billion) in 2006 and is expected to rise to $3.1 billion in 2016.

The spending power of young singles and married people with no children is estimated to rise from $1,200 per person in 2006 to $2,100 in 2016, while the spending power of young married people with children aged younger than 10 years should increase from $950 per person to $1,500 in 2016.

In a whole Asia-Pacific region, the research predicts that spending by young affluent people will jump to $500 billion in 2016.