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<Report from overseas office> [Thailand] Thai motor shows are huge trade fairs

1. Introduction

The Thailand Motor Show is fundamentally different from other motor shows held around the world. Although there are some show-like elements such as presentations on stage and campaign girls, the show is a business meeting where visitors can compare the attractive promotions of various companies at once, in other words, it is a huge sales event where visitors can actually buy cars on the spot!

Although new car sales have been weak this year, November and December are usually the peak months for new car sales. In 2019, new car sales are expected to reach about 1 million units per year, but it remains to be seen how they will land.

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2. the motivation for visiting the site is to seriously buy a car

I wonder how many of the people who went to the EXPO were there with the intention of buying a car. If you imagine a motor show in Japan, it would not be surprising to find a certain number of people who came to the show for leisure purposes, to gather information, or to take pictures.

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3. 77% success rate?

So, you may be wondering whether they really bought a new car or not. The number of people who "bought a new car" during the event was 35%, which was surprisingly low for the number of people who came to the event with the intention of buying. About 90% of the visitors came to the event with the assumption that they would buy a new car, but only about one in three actually did. However, there were a certain number of people who could not make up their minds on the day of the show, and as of December 11, the day after the end of the EXPO, 42% of the visitors were "still in negotiations. If all those who were in talks purchased, the closing rate at the expo would be up to 77%.

So, you may be wondering whether they really bought a new car or not. The number of people who "bought a new car" during the event was 35%, which was surprisingly low for the number of people who came to the event with the intention of buying. About 90% of the visitors came to the event with the assumption that they would buy a new car, but only about one in three actually did. However, there were a certain number of people who could not make up their minds on the day of the show, and as of December 11, the day after the end of the EXPO, 42% of the visitors were "still in negotiations. If all those who were in talks purchased, the closing rate at the expo would be up to 77%.

Next, we looked at the purchase rate during the period for those who "definitely intended to go" to the EXPO, and found that the rate was 43%, 8 points higher than the overall average. This data suggests that the more determined people are in advance, the more likely they are to actually purchase.
Some people may have compared various cars on the day of the event and finally decided which car to buy, while others may have been single-minded. In any case, it can be said that a certain amount of competition is decided before the EXPO. In that case, it makes sense that the companies are stepping up their advance promotions for the Expo.

If decisions are made to some extent prior to visiting the show, it may be possible to forecast sales with relatively high accuracy by conducting pre-purchase intention surveys for big events such as motor shows. Furthermore, by looking at the discrepancies between pre- and post-surveys, it may be possible to identify the causes of failure for manufacturers and models that have struck out, and use this information for future promotions.

In addition, I would like to mention the following as a bonus. The results of this survey are for reference only due to the small sample size, but for those who "went to the expo as a result" (N=27, 24% of the total), the purchase rate during the period dropped to 11%, while 59% answered that they were currently negotiating. For those who "visited the EXPO as a result" (N=27, 24% overall), the purchase rate during the period dropped to 11%, while 59% answered that they were currently negotiating. It is possible that more people are holding off on making a decision compared to those who came to the exhibition with a plan. (Next time, we would like to increase the sample size for further verification.

However, even if about 60% of the respondents were in negotiations at the time the survey was conducted, they might not be able to close the deal in the end, or they might decide to go with another manufacturer.
If the motivation to visit the show is not that strong for about one out of every five visitors, then the "how" of closing the deal on the day of the show becomes more important, as well as the promotion in advance. Knowing what the consumer is thinking, rather than simply competing for discounts, will help you have a more advantageous negotiation.

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4. finally

The motor show is indeed a major sales event. On the other hand, if you look at the closing rate during the show, it is only about one in three, which is unexpectedly high. Of course, consumers may want to fully compare and examine multiple manufacturers, and they may expect to get more favorable terms if they continue to negotiate rather than making a quick decision. On the other hand, considering that many promotions are conducted on the day of the motor show, the closing rate during the period should be a very important indicator of advertising effectiveness, and continuing negotiations would not be desirable. Although we didn't do it this time, we believe that it is possible to change the closing rate during the event by understanding the psychology of prospective new car buyers in advance by using a pre-visit car survey. After all, 93% of the visitors had the intention to buy a car.

Translated with AI Translator

  • Intage Inc

    Author profile
    Daisuke Aoba

    Male researcher in his 40s living in Thailand. He has visited more than 30 countries in the past. He believes in seeking out the best for the consumers in the country and always trying to be close to their feelings.
    He continues to post his own global gourmet posts, which are viewed about 1,000 times a day, mainly in Thailand.

  • Intage Inc

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    INTAGE

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  • Jan 20, 2020
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