Why to start Home Services Business in Thailand?
The growing number of consumers with middle and high disposable incomes attracts the strong demand for on-demand home services in Thailand. Consumers are more willing to spend in Thailand resulting in high growth. Market size of on-demand services was THB 52,680M in 2017 with an expected growth of 7.23% in 2018. It is growing steadily during the projected period of 2018-2022. It is projected that Thailand on-demand home services will have a market size of worth more than THB 76,000M by 2022.
Home services consist of various verticals including plumbing, home cleaning, lawn cleaning, laundry care, painting and many more. On-demand home services attract various challenges too. Overcoming the challenges are the signs to differentiate a brand from key competitors. We have figured out five major insights into Thailand on-demand home services are:
- Same or next day delivery is a norm
- Budget constraint is the deepest concern for more than 80% of companies
- People are afraid to change technology
- Thais are price sensitive people
- International brands have an advantage over local players
The Leading Home Services Vendors in the Thailand market are:
- Ayasan Services
Other Prominent Vendors around the world
- Laurel & Wolf
Market’s largest segment is laundry care accounting for around 65% of on-demand home services market share. CAGR of laundry care is 7.8% (2017-2022). Services in Thailand elucidate 55.83% in terms of Economic structure as GDP composition. Services related to Home Insecticides are also trending with CAGR of 7.8% (2017-2022). As a matter of fact, on-demand laundry services generates the largest volume followed by home insecticides and surface care.
The key factors supporting the future performance of these top categories are the innovation of new formulas in terms of delivering services and support. Consumers are becoming more sophisticated and more demanding, and they are looking for time-saving and effective products or services.
Brand matters to Thais
Thais are price sensitive but as a matter of fact the brands’ matter. Across all categories, brands introduce promotions to stimulate sales. Promotions can be a good way for entrepreneurs to attract Thais to their enterprise. The common strategy in Thailand to encourage customers to stay loyal to the brands is to introduce discount coupons and offers.
Apart from price, brand reputation and quality matter to Thais. They tend to stay loyal with the well-known and reputed brands. Brand reputation tends to change the decision of Thais while purchasing products or services. In fact, top three brands in each category tend to receive strong loyalty from Thais.
On-demand Home Services solution with Tookan
Tookan has developed tons of on-demand solution for many industries, including home services. Our developers are well-versed in developing on-demand apps and are responsible for the uberfication of many in the service industry. We have served home services solution to thousands of home services enterprises around the world.
If you are a startup who needs assistance to build your own app, just send us a quick inquiry and our on-demand app development experts will be more than happy to help you.