CAMBODIA
CLMV Pulse LAOS
VIETNAM
MYANMAR
LAOS
the Heartbeat of Southeast Asia’s Consumer
Office of Small and Medium Enterprises Promotion (OSMEP) E-saan Center for Business and Economic Research
CLMV PULSE: THE HEARTBEAT OF SOUTHEAST ASIA’S CONSUMER
LAOS
E-saan Center for Business and Economic Research Khon Kaen University
In collaboration with: Ms. Mu Mu Thient, Yangon, Myanmar Laos National University, Vientiane, Laos Hoa Sen University, Ho Chi Minh City, Vietnam Royal University of Phnom Penh, Phnom Penh, Cambodia
Acknowledgement : This report was supported by Khon Kaen University and the topics on food and home decoration were funded by The Office of SMEs Promotion, Thailand (OSMEP) Copyright Š 2014 Esaan Center for Business and Economic Research (ECBER), Published by Khon Kaen University All rights reserved. This publication is designed to provide accurate and authoritative information with regard to the subject matter covered. No part of this publication may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as expressly permitted by law, without the prior written permission of Khon Kaen University. Requests for permission should be addressed to: Esaan Center for Business and Economic Research (ECBER) Faculty of Management Science, Khon Kaen University, 123 Mittraphap Road, Nai Muang, Khon Kaen, Thailand 40002 Tel: +66(0) 43 202 566, email: ecber.kku@gmail.com Fax: +66(0) 43 202 567 www.ecberkku.com/asean www.facebook.com/ecberkku Price: 450BHT
EDUCATION
WORK & PERSONAL FINANCE
10 12
FOOD & DRINK
HEALTH & MEDICINE
14
28
SHOPPING & LEISURE
HOUSE & HOME
32 36
E-saan Center for Business and Economic Research
Khon Kaen University
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Khon Kaen University
CLMV PULSE: THE HEARTBEAT OF SOUTHEAST ASIA’S CONSUMER
LAOS CLMV PULSE: Laos
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“
LAOS LAOS IS A SMALL COUNTRY BORDERED BY THAILAND, CHINA, VIETNAM, AND CAMBODIA. IMPORTANT CITIES OF LAOS ARE VIENTIANE (CAPITAL),
VIETNAM Hanoi
LAOS
LOUANGPHABANG
(SCENERY TOWN), AND SAVANNAKHET (INDUSTRIAL
TOWN).MOST AREA OF LAOS ARE MOUNTAINOUS AND PLATEAU. THERE IS NO WAY OUT OF THE SEA, THAT RESEMBLES A LAND LOCKED, LAOS IS A COUNTRY
Vientiane
WHERE IS BASED ON AGRICULTURE. THERE ARE SEVERAL ABUNDANT NATURAL RESOURCES. THE ECONOMY OF LAOS IS UP TO INVESTMENTS
THAILAND
OF PRIVATE SECTORS AND DOMESTIC CONSUMPTION, IN CLOUDING Bangkok
Siem Reap Battambang
CAMBODI A Kampong Cham
Phnom Penh
MANUFACTURING BUSINESS OF ELECTRICITY POWER EXPORTED FROM THAILAND, AND IMPORT VALUES ARE HIGHER THAN EXPORT VALUES. HOWEVER, THE INVESTMENT VALUES FROM FOREIGN COUNTRIES ARE INCREASING AND A PROPORTION OF THE POOR IS DECREASING. IN ORDER TO MOVING HAVE CIVILIZED PROVINCES FOR WORKING FROM MORE AND MORE PEOPLE, LAO CONSUMERS’
BEHAVIORS ARE CHANGED. IN LAOS, MEN GET MORE CHANCES THAN WOMEN IN BOTH WORKING AND EDUCATION. MOREOVER, THE EDUCATIONAL SYSTEM IS NOT WIDESPREAD THROUGHOUT THE WHOLE COUNTRY. ESPECIALLY, PEOPLE IN COUNTRYSIDE AND MOST OF LAO CITIZENS STILL BELIEVE THAT THEY WILL GET BETTER JOBS IF THEY HAVE BETTER EDUCATION.
METHODOLOGY IN THIS STUDY, WE ANALYZED LAO CONSUMERS’ BEHAVIORS BY COLLECTING DATA FROM 400 QUESTIONNAIRES, CONVENIENCE SAMPLING, AND COLLECTING QUALITATIVE DATA FROM HOLDING A GROUP DISCUSSION WITH MARKETING AND CONSUMERS’ BEHAVIORS EXPERTS. IN COLLECTING QUALITATIVE DATA, THE STRUCTURE OF RESPONDENTS ACCORDING TO DEMOGRAPHIC QUALITY OF LAOS WAS DECIDED TO GAIN BELIEVABLE RESPONDENTS AND REPRESENTATIVES MOST OF THE PEOPLE. IN LAOS, WE COLLECTED DATA IN VIENTIANE AND WE BASICALLY FOUND THAT LAO POPULATION HAVE LOW INCOMES, 35% OF THEM HAVE NO MORE THAN 4,999 BAHT, AND ANOTHER 35% OF ALL POPULATION HAVE BETWEEN 5,000 – 14,999 BAHT. THERE ARE ONLY 10% THAT HAVE THE INCOMES MORE THAN 25,000 BAHT. LAO EXCHANGE RATE IS KIP AND ITS VALUE IS LESS THAN FOREIGN CURRENCIES, ESPECIALLY THE US DOLLAR. THE RESULT FROM THE STUDY REFLECTS THAT LAO PEOPLE APPROACH TO EDUCATION MORE AND MORE IN ORDER TO GOOD FUTURE AND FINANCIAL STABILITY IN WHICH THE GOVERNMENT IS RECEIVING THE SUPPORTING TO MAKE A CHANGE BY GIVING EDUCATION TO PEOPLE AND GIVING MORE OPPORTUNITIES FOR INVESTMENTS FROM FOREIGN COUNTRIES.
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Khon Kaen University
Respondents Gender
Age
Education
Occupation
Personal Income
Medium business owner Other State enterprise employees. Small business owner
Unemployed
*LAOS - WAT CHOM KAO MANIRATH BY NICK HUBBARD
CLMV PULSE: Laos
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EDUCATION About Lao people’s education levels, we found that most of the respondents graduated in bachelor degree, the proportion is about 50%, next is high school or vocational certificate, 22%, diploma is 12%, and the respondents who graduated in master degree are 7% respectively.
Highest education level of respondents sampling of Laos
In addition, we found that majority of the respondents, 81%, graduated from public universities or public institutions, next are about 10% graduated from private universities in the country, another 8% graduated from international institutions (abroad), and about 1% graduated from domestic international institutions.
Academic Intitutes that group sampling graduated
Nowadays, Laos uses 11 year educational system, which is 5:3:3 systems. In primary school, it spends five years studying. Students go to school when they are six years old. This educational level is a compulsory education; every child must graduate in this level. However, in a practical way, there is a benefit for only children who are in big cities because Laos is large and population
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Khon Kaen University
LAOS
EDUCATION
"LAOS PRESS TRIP OCT 2008" BY CLUSTER MUNITION COALITION
Education of Laos, starting with education in kindergarten and preschool. Kindergartens in the country have a both of public and private schools, open for students the age of 3-6 years take a 3 years break was 1-3, at the end of kindergarten elementary are enrolled in primary studies. spread all over the country. For secondary school, it spends three years studying, and students will study more English in the future. In high school level, it spends three years studying. Foundation education in the 5-3-3 system is in the supervising of the Department of General Education, Ministry of Education. In higher or advanced education, include technical education, advanced institution, or university, which is in the supervising of Department of Vocational Education and University, Ministry of Education. Except educational specialist, which is in the supervising of other ministry. When the students finish primary and middle school, there will be student selection in order to presentation to the ministry of Education for permitting the students continue studying in higher levels such as vocational education which spends three years studying in technical institutions like electricity, construction, accounting, forestry. Important universities and educational institutions are as follows;
1. University of Medical Science (Vientiane) spends six years studying, and is up to Ministry of Public Health.
2. National University of Laos (Dong Dok) spends four years studying.
3. National Polytechnic Institute spends six years studying. CLMV PULSE: Laos
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WORK & WAGES The behavior of Lao people, from the surveying occupations of the respondents, except students which are 28%, majority of the respondents (22%) are government officers, next are employees or private employees (13%) and 11% of small business owners respectively.
Current occupation sampling of Laos
Most of the respondents travel to works by car 53%. Although the traffic condition in Vientiane does not jam, the respondents suggested that travelling by motorcycles is convenient both in travelling and finding car parks. Motorcycles’ prices are also affordable without cause any burdens, and next is a private car, about 40%. Average working days of the respondents are 5.36 days/week, and working hours of the respondents are 7.57 hours/day. Moreover, of the majority of the respondents do not have part-time jobs, but there are 22% of the respondents have part-time jobs with full-time job In the part, Laos has been the development of more domestic workers in order to improve the quality and productivity of labour, Especially in the industrial sector is this allows workers in agriculture declined and workers in the manufacturing sector increasing. In addition the government is also development more skilled workers in order to support exported foreign country to work very well. For the welfare of workers in Laos, It is protected by law including requiring employers to offer benefits to employee such as a establishments with 10 or more employees must have a social insurance for employ, etc. However while this is not considered to be applicable to all types of business 12
Khon Kaen University
LAOS
AGRICULTURIST
“VICTORIA WOOD VISITS MAG LAO IMG_1138” BY MAG (MINES ADVISORY GROUP)
The ways of getting to work of Laos people
Other
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FOOD & DRINK Kitchen and food storage A type of kitchen which Lao people use to cook their meals, from majority of the respondents, is an original kitchen, which is inside the house, 45%. It was different variety in each house, But it is noticeable that many of the traditional kitchen began to improve to modern kitchen, But still coupled with a traditional kitchen stylish for older people is familiar with the traditional kitchen
In Lao people’s food habitudes, we found that the respondents will always buy meats, vegetables, rice, dried food, and seasonings to hoard or to store up in the kitchens for cooking. For fresh fruits and frozen foods, they will not buy they will not buy them for storage. They will buy for only enough amounts to consume in each time
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Khon Kaen University
Next is an original kitchen, which is outside the house, 23%. This is because Lao house’s areas are not limited, so that able to allocate apace for cooking. Considering about the electric appliances in the kitchen, we found that 96% of the respondents have refrigerators at home, next are 82% of electric kettle, and 57% of gas or electric stoves respectively. This shows that there is more adapting and increased purchasing power. Electronics shop in Vientiane is still considered a small amount, But most likely will be available is stores in closeness to the market that can be easily purchased and most of products are imported from countries of China, Thailand, Vietnam.
STREET FOOD (1) - VIENTIANE, LAOS BY AG GILMORE
It is found that the respondents buy vegetables every day or store them every day, calculated as 55%. For meats and fruits, mainly to the frequency of buying is once or twice a week, 59% and 56% respectively. About 90% of the respondents like buying vegetables, fruits, and meats at fresh-food markets. It is because they are near their houses, convenient to travel, and cheap. For the fresh market in Laos, the most are sold as fresh fruit, vegetables, meat and other local products, Which are cheap and also has space for selling consumer goods, that are used in everyday life as well. For dried foods, rice, and seasonings, the respondents have frequency of buying about once a month, 59%, and most of them buy at the grocery stores near the houses, 46%. The reasons are because of relationships between merchants and customers, bargaining, and also building friendship between the communities sometimes. For seasonings, most of them go to the supermarkets because products and prices are standard and high quality. They like to buy imported products, especially the products from Thailand, which are high quality, and they always buy them once a month. CLMV PULSE: Laos
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แผงขายสินค้า ในตลาดสด นคร เวียงจันทน์ (1)
However, Ready-to-eat and frozen foods are still unknown and unpopular in Lao respondents; the proportions of the Lao respondents who buy the foods to eat are 38% and 24% respectively. They buy the foods at the large supermarkets because there are the products which are more needed, various, and convenient to buy than others. Quantity and amount of the products Lao people buy in each time, the respondents who have moderate-low incomes and the respondents who have moderate incomes usually buy enough products just for only one time, or 1-2 pieces a time. For the respondents who have moderate – high incomes and the respondents who have high incomes usually buy some products to store up, or about 3-5 pieces a time. From the surveying, we found that even though majority of Lao people get used to buying products from the grocery stores, more people are getting used to go to retail shops. They change their habits to modern trade, both of purchase behavior and price comparison because there are more various products in the retail shops than in the grocery stores. It is clearly seen from the change of the morning market where it opened only morning – late morning in the past, but in the present, it is changed to Talat Sao Mall market and open all day. There are more various products which make customers feel more comfortable. As the central market selling various types of construction, but there are more current and it is still Talat Sao Mall market identity intact same like a department store, which selling a local products and goods from abroad like a peal from the Vietnam watch from Russian miscellaneous supplies from China, ect. There is a lot of gold, silver in seal area, the new building of Talat Sao Mall market have the location for bank branch service and also there are exhibit as well, especially IT and Mobile categories service.
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Khon Kaen University
For planting and animal husbandry for consuming in Lao households, 40% of the respondents plant vegetables at homes for their own consumption, 12% of the respondents do animal husbandry for consumption, and 5% of them also plant rice for consumption. 39% of the respondents do not plant or do animal husbandry for consumption in the households. When we asked the respondents about factors which they use to make decisions in selecting products, Found that the factors which they gave precedence to the most important products marked with product quality such as ISO, HACCP or Halal. The value is 4.27, Laos people have commented that the quality of goods imported from Thailand. Next important factor is healthcare and organic products, which means value is 4.18, and famous products, which means value is 4.14 respectively. Factors which they do not give much precedence or bring to make decisions in purchasing are foreign products which are imported. Mean value is 3.33 that is the least mean because most of the products in Laos are imported. Next factor is commercials in many places such as billboard, television, radio, or newspapers and products which have premiums.
CLMV PULSE: Laos
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About tastes of food, most of Lao respondents like spicy food. We found that 30% of the respondents selected spicy level at level 10, especially the respondents who are between 18-29 years old tend to be the most proportion who like spicy food. For sweet food, the respondents put it in moderate level, which is 5-6, and for the sour food, the respondents put it in level 10 and level 5, which are 22% and 21% respectively. Moreover, most of Lao respondents do not like salted and bitter food. The respondents selected level of salted and bitter food at level 1, which are 39% and 40% respectively. From quantitative research, it is found that Lao food’s tastes are similar to Thai’s, especially Esan’s tastes (Northeastern part of Thailand). It also includes the way of cooking, which is similar such as Somtam (papaya salad) which pickled fish is the main ingredient, spicy taste, and the difference is only side dishes. Food of Laos is famous for their freshness, especially the vegetables, fruit, and freshwater, such as fish, shrimp, etc. Because Laos has plenty of natural resources greatly. Laos have the rivers flow such as a spicy papaya salad and grilled chicken are the main food is sticky rice is not commonly used in cooking oil. The most of food is mainly focused on maintaining the traditional taste of Laos. Addition of food each nation who live in the country, whether it be food Thailand, Laos, Vietnamese and France, etc. The food which Lao people do not like the most oysters accounted for 22%, next is beef and crab which are 15%, and 14% of shrimp respectively. If we consider clearly, we will find out that it conforms to the topography of Laos which does not connect to the sea. Therefore, having seafood is harder for Lao people, both freshness and prices that are in higher level than other types of food.
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Khon Kaen University
Eating out behavior From the surveying, we found that majority of Lao respondents usually cook at homes, especially breakfast and dinner. 75% of all respondents cook breakfast to have at home, and 85% for dinner. For lunch, most of them have outside the houses as 53%, and29% of all go back home for it. Only 8% of all respondents cook lunch at home and bring to eat outside. However, eating out behavior tends to be increasing because more and more people work outside. Therefore, it is not convenient to travel back home for lunch like in the past. There is more various food to choose and we can see that having lunch with colleagues or university friends also can build up good relationships.
CLMV PULSE: Laos
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Almost every Lao respondent, about 97%, have breakfast before working or school that means there are some of respondents who do not have breakfast about 3%. For breakfast which Lao respondents usually have are 30% of a la carte, 20% of softboiled rice or soups, 14% of tea and coffee, and 13% of milk respectively. Moreover, we found that about 14% like to eat bread, hams, and sausages, and 2% of all eat cereal "FRESH FRUIT AT BREAKFAST" BY ESME VOS
About frequency of eating out, 29% of the respondents go out for eating once a week, next is 28% going out for eating once a month, and going out every day or almost every day is 21% respectively. The proportion of them who go to normal restaurant is 87% and most of them go with their families and friends. The most dishes which are popular for eating out are Lao dishes, they are ordered every day or almost every day as 83%. Next is Thai food, the respondents go to the restaurants for 2-3 days a week as 35%. If we clearly consider, we will find out that in Laos, Lao and Thai food can easily be found in normal restaurants. 20
Khon Kaen University
"FRIED EGGPLANT WITH CHILI SAUCE DIP" BY BUTFORTHESKY.COM
However, the culture of eating out is a popular of Laos, because this is going out to dinning in the holiday or free times sight such as waterfalls, rivers, fields, and can be returned on the same day. Also preparing the food by themselves from both of ready at home and ready for cooking. And then can cooking in places.
For Japanese and Korean food, most of the respondents said that they have never eaten before or just one time. However, the respondents who are between 18-29 years old go to the Japanese or Korean restaurants about once a month. They like to go to normal Japanese and Korean restaurants, and tend to be increasing more and more in Laos. For Shabu, Sukiyaki, and barbecue, now we found that the respondents who are between 1822 years old and 22-29 years old have them about once a month. They always go to the Shabu restaurants, or Sukiyaki restaurants which this habit tends to be increasing according to the change of eating habitude at modern restaurants. However, from the quantitative research, we found that Lao people tend to eat out more and more, especially young generation, who like new tastes, foreign food, and modern dishes, especially roasted food, pork on a hot plate, Japanese food, Korean food, and seafood. We can see from the amounts of increasing restaurants, including local food restaurants and seafood restaurants, also foreign restaurants. In the currently restaurants in Laos has increased a lot, both foreign and Laos have developed a more modern. In particular, that fast food has become more popular. Because the social and economic conditions that have increased, Also restaurants have increased and Laos can afford to buy more. Including those who work outside the home, that makes it not easy to cook your own. As well as the culture of the people of Laos. At present there are more with the celebration and meeting in the evening after finished work. Therefore, eating outside more than the past, so a culture of eating in Laos of combination of traditional cuisine and modern cuisine. There are still restaurants using local food opened in town, such as papaya salad shop at the Center point, which is meeting place and arranged for a group of teenagers in the city , in addition to other restaurant with the modern in style CafĂŠ and more popular to respond these changes as well. CLMV PULSE: Laos
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From asking about the first 3 most important factors which the respondents use to make decisions in selecting restaurants are tastes of the food which are the most proportion, 94%, of all factors, next is cleanliness of food and restaurants, 68%, and 44% is service of staffs in the restaurants. About the information resources in selecting restaurants, we found that friends are the most important factor. Majority of Lao people know or select the restaurants from friends’ or kiths’ recommendations as 45%, next is to know and see from commercial signs as 16% and to see from television and radio as 15%.
When we mentioned to the Delivery service, most of the respondents have never ordered before as 49%. Another 44% used to order food, but not often, and 8% often order food to eat at homes. About ordering food to eat at home, 47% used to order food but not often, and 43% have never ordered food to eat at the offices. 10% often order food to eat at home
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Khon Kaen University
Tendency of healthy food consumption Consuming healthy/non-toxic food habitude of Lao people, we found that most of the respondents consume healthy/non-toxic food about once a week as 40%. Next is consuming every day or almost every day, and consuming about once a month respectively. We found that females have more frequency of consuming healthy food than males, and the respondents who are between 50-60 years old most often consume the healthy food that is every day or almost every day. From the qualitative research, we found that for Lao people, Lao food is healthy food or good for health because there is not much fat and vegetables are the main ingredient. We also found that young generation and highincome people like to consume healthy food more and more. Besides, if we separate behavior of healthy food consumption according to income levels of the respondents, we will find that the respondents who have high incomes have the highest frequency in consuming healthy food as 75%. Next are the respondents who have moderate incomes as 72% and the 71% of the respondents who have moderate-low incomes.
When asking the respondents who do not consume the healthy food, we found that majority of them said that it is because of inconvenience to find the food as 52%. Next is prices are more expensive than the normal food as 24%, and the tastes of the healthy food are not right for them as 11% respectively. Foods that the respondents try to avoid consuming are greasy food, fried food, dessert, food with monosodium glutamate, preserved food, and ready-to-eat. For fast-food, it is found that the respondents who are between 18-22 years old have the most frequency consuming it. The respondents who are between 23-29 years old have similar proportion between often consumption and avoidance not to consume. However, even most of the respondents try to avoid consuming harmful food, but for roasted food, most of them often consume. The proportion of people who usually consume is 78% of all respondents. There are only 22% of the respondents try to avoid, and just only 1% have never had before. Besides, it is well known that consumption of monosodium glutamate or Pang Nua (Lao language of monosodium glutamate) in Laos is in a high level, but from the surveying, we found that majority of the respondents, which is up to 68%, try to avoid consuming food with monosodium glutamate, and 9% of the respondents do not consume monosodium glutamate which conforms to the qualitative research that found that attitude towards eating of Lao people were changed. They have more knowledge about eating, their health, sanitation, and safety of the food.
อาหารประเภทหมักดอง ณ ตลาดสดแห่งหนึ่งในเวียงจันทน์
ขนมหวาน ของขบเคี้ยวที่วางขายในตลาดสดกรุงเวียงจันทร์ CLMV PULSE: Laos
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For purposes of consuming healthy food of Lao respondents, the majority of them said that they consume for their health or making them healthy as 67%. Especially females and people who are more than 60 years think over of this reason first. Next is for preventing themselves from being sick as 17%, and making them look good and having good appearances as 7% respectively. But if we classify factors of consuming healthy food by genders of the respondents, we will find that female respondents give precedence to healthy food consumption according to healthy reasons, tastes, and popularity more than male respondents. For the male respondents always give precedence to sickness prevention a bit more than the male respondents. Moreover, the male respondents also consume healthy food less than the female respondents in the proportion of 60 to 40.
Healthy foods which the respondents eat the most are organic food and vegetables as 84%, next are vitamins and supplementary foods as 46%, and healthy herbal drinks as 37% respectively. For price levels they are willing to pay more for buying healthy foods, most of them are willing to pay 5% more than normal food as 40%, and are not willing to pay more than normal foods as 23%, and are willing to pay 10% more as 20% respectively.
“PHÔ + NEMS + DESSERT LAO”BY ° O O °O O ° ° O ° 24
Khon Kaen University
Alcohol drinking behavior About Lao people’s alcohol drinking behavior, the majority of the respondents occasionally drink alcohol as 63% of the whole respondents. 28% of all do not drink alcohol at all, and only 9% of the respondents answered that they usually drink alcohol. People who usually drink alcohol, most of them are between 23-29 years old and 30-39 years old respectively. The main reasons of people who do not drink alcohol are bad for health as 65% of all reasons, especially females. Up to 60% of all think of this reason. Next dislike the taste of alcohol as 22%, and 4% thinks that it is not appropriate to their own ages respectively.
However, alcohol habits of Laos has changed continuously increased. That has been modified to consume of distilled liquor to more beer. As a result of the marketing and advertising of beer company.
Behavior of drinking Beverages that the respondents always drink are milk, soymilk, juice, and soft drink. For uncarbonated drink, which is drunk every day or almost every day, they usually buy at normal grocery stores. For coffee or tea are about once or twice a week. In Laos, coffee is more popular than tea. People who are usually drinking coffee are around 40-49 years old and 50-60 years old, and moderate and high income people. They buy the drinks at normal coffee shops. For the beverage like Functional Drink, Healthy and Beauty Drinks, and herbal drinks are not quite popular now. Most of the consumers are the high-income people; they buy them at supermarkets or department stores. "BEER LAO LAGER" BY PRINCE ROY
CLMV PULSE: Laos
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Frequency of eating healthy food in group sampling
For the beverages like vodka, brandy, whisky, wine, champagne, and beer which are imported from foreign countries, the respondents do not often drink. A group of people who usually drinks these types of beverages is high-income people. The places where they always go are bars or nightclubs.
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Khon Kaen University
Consuming tea, coffee, and dessert Majority of Lao respondents prefer drinking coffee to tea. People who drink once a day are the most proportion as 25%, and several times drinking is 11%, especially the respondents who are between 18-22 years old have the most frequency of drinking. Most of them buy the drink at coffee shops and take them homes and offices. For Laos coffee business in growing up by the government agencies are promoting coffee planting and manufacturing processes. There are also increasing production volume and increase the quality of the coffee as well, that is coffee drinking habits can affect the behavior of Laos people coffee drinking increased For sweets, dessert, bakery, and ice cream, they eat them 3-4 times a week, especially in people between 18-29 years old. They buy them at convenient stores, grocery stores, including fresh-food markets. In addition, most of them usually take homes or office. For a bakery or pastry shop have of Laos did not have much variety. Laos continues to have not much choice, as well as the taste does not equally popular competition in Thailand.
Food expenses When asking about expenses in personal buying food of the respondents, we found that the mean value is in 2,000 – 4,000 baht. For the whole family expenses are 4,0006,000 baht per month. People with high incomes also have high expenses. From the quantitative research, we found that the high-income people have higher frequency of eating meats and foreign foods than lowincome people who usually eat only in some important chances.
CLMV PULSE: Laos
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HEALTH & MEDICINE About medical behavior, we found that half of the Lao respondents like to go to the drugstores near their houses to buy some medicines by themselves when they are a bit sick. Next is going to clinic and public hospitals as 23% and 14% respectively. If they are too sick to go to the hospitals, 74% of Lao respondents like to go to the public hospitals. 10% of them like to go to clinics and private hospitals. And another 5%, most of them are high-income people, like to go to modern hospitals abroad. In Vientiane, there are few hospitals in the center is also only five, there is only 1 percent of the region, which is in proportion to the population and is also considered to be not sufficient to service, and including medical instruments that are not modern, some people of Laos are visits to the service at Udon Thani, Nong Khai, Especially Laos people will go to Khon Kaen and Bangkok. Laos come to served in Thai hospital , mainly high quality or premium hospital such as Watana hospital, Aekudon hoapital.
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Khon Kaen University
LAOS
HEALTH &MEDICINE
However, the results from the study show that most of the Lao respondents are not received enough good social welfare because people who must pay for the medical fee are the respondents themselves or their parents as 87%of them. There is not over 10% that receive social security, and there is only 4% that receive compensation from insurance companies.
Responsible for medical expenses of sampling Laos
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About health inspection, 38% of Lao respondents have health inspection every single year. Next is longer than 1 year to have the inspection. Moreover, 61% of them sometimes eat vitamins or supplement food. Another 31% never or hardly ever eat. There are only 9% that eat at home. About doing exercise of Lao respondents, most of them do exercise about once a week or almost every day. They mostly like to walk or run because equipments are not necessary, and there are many places to run or walk in Vientiane. Picture 23 show ways to exercise/ play sports which are popular among Lao people. Beside walking or running, they like to play outdoor sports and go bicycling. For taking care of themselves of Lao respondents, it is found that applying lotion and doing makeup are the most proportion as 77% and 41% respectively. About laser filling, Botox injection, and meeting skin doctor are for a few groups of people. For consuming beauty supplement food, there are 20% and most of them are only women and high-income people. From studying about attitude towards beauty, we found that female respondents always take care of themselves, and give precedence to their skins specially. Having beautiful skin is the most important thing for Lao female respondents as 60% of all female respondents. Next is looking younger than their own real ages. About plastic surgery, they think it is still not important.
For using beauty service such as salons, spa, and beauty clinic, Lao respondents usually go to salon or barbershop once-twice a month. Male respondents have more frequency of going to the shop than female respondents who go to the shop every three months. One-third of the female respondents have their hairs cut every six months, which is the same frequency of going to nail shops, about every six months. However, for spa, massage, or beauty clinic, most of them have never been there before, but they will be more popular by the young generation. 30
Khon Kaen University
However, from the qualitative research, we can see that beauty value is increasing among teenagers, especially girls who think that having beautiful skin, fresh faces are important for living their lives in nowadays, and also include making more confidence in education, working, and appealing the opposite gender. With influences from television, sign boards, and internet which are the role models of the value, they make Lao’s new generation take care of themselves both in dressing and beauty products more and more.
Smoking habits Smoking habits of Lao people, we found that most of the respondents as 89% of all do not smoke at all. There are only 11% who smoke, most of them are males, especially the respondents who are since 30-39 years old, 40-49 years old, and 50-60 years old. The proportions of each range of ages are 20%. The respondents who are over 60 years old do not smoke.
Smoking behavior
About buying cigarettes of Lao respondents, about 55% of them buy the cigarettes at general stores. Some of them go to department stores or markets to buy, about 10% and 5% respectively. For buying the cigarettes at convenient stores is about 8%. For attitude about smoking of Lao respondents, it is found that 90% of them agree that there should be a law about not allowing smoking in public. There is only 5% disagree to this law, and another 5% has no comment. Moreover, when asking their opinions about danger of cigarettes to health, 96% of the respondents said that cigarette is harmful to their health and interrupt other people. Another 4% has no comment.
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SHOPPING & LEISURE For Lao people’s shopping habits, most of the products they always buy are normal things such as detergent, toilet paper, soap, shampoo, and toothpaste which they buy at nearby grocery stores, 51%. Next are convenient stores 16% and fresh-food market 13% respectively. The respondents who like to buy the products at the convenient stores mostly are between 2329 years old. For skincare products and lotions, the respondents mostly buy at convenient stores as 22%. Next are grocery stores 21%, and supermarket or hypermarket 16% respectively. For cosmetics, they like to go to cosmetic shops 20%, next is supermarket or hypermarket 15%, and department stores 14% respectively. Online shopping is limited into a small group of people. People in Vientiane who are moderate-income people like visiting Thailand for shopping, especially on weekends. Both hypermarkets in Nongkhai and Udonthani are very popular because it is convenient to travel and there are a lost of products.
“CANEWORK SHOP, VIENTIANE” BY KIRAN JONNAL-
Attitude towards shopping For shopping attitude of Lao respondents, the most important things are using good products with high quality. Next is when they choose to buy products in each time, they always choose the best ones, and in general shopping, they buy only the best products. In conclusion, we will see that Lao people always mainly think of quality of the products by choosing the highest quality products in the stores. They always choose using the highest quality products, and choose them carefully for getting the best things. However, the factors that most of the respondents rarely give precedence to in buying products are buying fashionable products. Next is thinking that using much time choosing products is wasting of time, and not thinking too much in buying. These conform to the behavior that Lao people take time to buy products for getting the best ones.
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LAOS
SHOPPING
“SHOPPING [SHANGHAI LAO JIE / SHANGHAI]” BY D’N’CAGADDA
For the specific products like cell phones, computers, computer devices, including cars, motorcycles, and motorcycles’ equipments, the respondents always go to the showrooms or the specific shops directly. However, Laos has a demand for automobile and car parts are high, According to economic growth and make Laos people have purchasing power and want to have own car and Laos people prefer to buy the car Pic-up driven 4 wheel 4 door, Because of use variety, as well as state road several routes al so dilapidated made auto parts service life have a shorten and need to replace parts more often.
ห้างHOMEIDEALในนครเวียงจันทน์
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Laos consumer’s shopping attitude
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Hobbies which Lao people always do are watching TV and doing housework. For other activities like watching movies at home, listening to music, watching sports, reading books, surfing the internet, doing exercise, and cooking, they sometimes do. Activities that they rarely do are craft, art, and gardening. From the study, it is found that Lao people like watching TV so much. We found that the respondents mostly receive news or information from TV, which they watch every day or almost every day as 77% of all the respondents. Next is receiving from the internet, the proportion is 55% which they receive every day or almost every day. Especially, a group of the respondents who are between 18-22 years old as 71% who receive the information every day or almost every day, and a group of 23-29 years old have 66% who receive the information from the internet every day or almost every day. Next is from radio as 31% and the frequency is every day or almost every day as picture 28. Besides, the other hobbies are eating out, which they always do, about going to cinemas for watching movies, going shopping, decorating home, having party, going out, , playing sports, and travelling, the respondents sometimes do. The activity which most of them hardly ever do in free time is singing karaoke.
Fashion source in Lao consumers
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HOUSE & HOME Definition of home of Lao people, the respondents told us that home is the best dwelling because it is for relaxation and using time with family, being safe, warm, comfortable, and happy. Besides, home is a reward of life, the reward for working hard, and a dream for making a perfect life.
Type of habitation Overall image of Lao people’s types of dwelling, houses of most respondents are detached house/villa as 72%, and live together in a big family which there are average family member 5-7 people. Next are mansions or flats as 8%, and commercial buildings as 6% respectively.
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"A FAMILY HOME AFFECTED BY FLASH FLOODING" BY DEPARTMENT OF FOREIGN AFFAIRS AND TRADE
LAOS
HOME CARE AND DECORATIONS
“LAOS TRIP 075” BY N&K PICTURE OF TIME
There are 2-3 bedrooms, and 1-2 toilets in most of Lao respondents’ houses. About types of houses, most of the respondents said that they live in the houses, which they built by themselves as 79% of all respondents. Next is rented houses as 12%, and 4% of official residences respectively. Most of the houses are mainly made of bricks and cements. Next are wood-cement houses which their decorations are different from normal types of houses. It is not popular to decorate walls by attaching wallpapers or paving rocks. 78% of the respondents still decorate their houses by painting. Next is using wood to decorate as 11% of all. About floors, most of them paving with tiles as 73%, next is cement floor as 34%, and 13% of wooden floor. In the countryside of Laos will separate home and away, high under the floor house because there are no limitation in the area, This is consistent with the life stay of the rural agriculture and like living on a tropical farm and agricultural garden. In the city area, such as Vientiane style house will more dense modern with more combination of traditional house and modern house, Especially use of construction materials with a mixture of wood and concrete house. Because there is no high under the floor house in the city, But most of the concrete structure, roof tiles in addition to strength and leverage both upstairs and downstairs.
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Habitation behavior From asking the respondents, we found that the most used rooms in the house are living room 57%, next are bedrooms 30%, and kitchen 8% respectively. The rooms they would like to decorate most are living room 74%, next are bedrooms 18%, and kitchen 4% respectively which conform to the rooms they would like to show to guests the most are living room or drawing room 91%, next is toilet and bedrooms respectively. Laos people are still living in large family and many people. Therefore, to use of space in the house for utilization, so it must be managed to benefit the most. And the living room id used to do the activities with the family the most, But in the group of teenagers to more importance to the bedroom as much as possible.
Electric equipment For electric equipment ; fan, TV, and rice cooker have the highest proportions as 96%, 95%, and 90% respectively. Besides, we found that there are average two televisions per one household which conform to the qualitative research; it is also found that television is the important electric equipment because beside Lao people like to watch TV; it also represents its owner’s status. Lao people always mainly put it in the drawing room or living room.
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Decorating and buying things for decoration behavior About Lao people’s decoration, most of the respondents said that they did not hire architect, decorator, or designer to decorate their houses as 65% of all the respondents who did not hire at all. There are 24% hired for decorating some parts of their houses. Another 11% hired to decorate all the houses or almost all the houses, most of them are a group of the respondents who are moderate to high income people and high-income people. However, the majority of the respondents think that having clean, tidy, comfortable, and beautiful houses are important. 48%of all think that it is the most important and they rearrange or moving furniture about once a year or longer as 43%, and 3-6 months a time as 18%. Buying small things for decoration such as lamp, picture frame, and so on, most of the respondents buy them about once a year or longer than that as 48%, and 3-6 months a time as19%. For big things like table, cabinet, and bed, most of them will buy every year as 34%, and longer than one year per a time as 29%. The main reasons for buying new furniture are replacements the broken ones as 36%. Next is redecorating houses as 25%, and for more convenient as 19% respectively. It is found that most of the respondents who have high incomes buy new items for decoration because of making more convenient and changing style.
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Idea or inspiration in decoration of Lao people, most of the respondents get from the television programs as 52%, next is furniture and decoration fairs as 47%, and from books or magazines as29% respectively. For their favorite style of furniture, the majority of the respondents like decorating with modern, convenient, and ready-touse furniture as 67%, next is old or antique furniture as 15%, and tailor-made furniture as 10% respectively.
The percentage of Laos’s favorite furniture styles
Moreover, the most popular furniture is wooden furniture because Laos is abundant of wood, so wooden furniture is in affordable level to process. And skilled workers in making wooden furniture of Laos is good quality are easily to find For buying furniture, most of the respondents buy from furniture shops as 46%, next are large furniture shops as 32%, and home and furniture fairs 10% respectively. From the survey, people respondents are interested in home and furniture fairs as 88% of all the respondents.
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We can see that the frequency of Lao people’s shopping for decoration is not high, and they like to buy the large furniture shops which conform to the qualitative research which found that furniture shops in Laos are still little. Therefore, it affects to buying furniture to decoration behavior that they will buy once a year, and buy in case of replacing the broken ones. However, it is expected that Lao people’s decoration behavior tends to be more modern and more variety from environment change, media influence, and receiving new things of Lao citizens. In Vientiane shop equipment construction materials spreading. The most of which are small shop and produce, in products for sale most of wooden furniture and small imported from aboard, such as Thailand, Chinese, Vietnamese, etc. And the shop home decor products in Vientiane have been popular and play an important role and market share of 60 percent such as Suwannee construction shop, Which is well know in Lao. For decision to buy furniture, most of the respondents said that they decided by themselves, and always pay by cash as 96%. Decoration and furniture expenses of Lao people are around 5%-10% of their whole year incomes. However, the majority of Lao people also consider Feng Shui or Chinese belief of how to locate building as important factor. 23% of them believe in Feng Shui, and arrange home according to it. 54%of all consider Feng Shui for some time and some parts of house and another 23% of all do not consider at all.
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Factors in making decision to buy furniture About Lao people’s decision of buying furniture, factors that the respondents give precedence to the most are delivery service as, next are the shops which have a lot of staff helping and giving and modern furniture. For the factors that the respondents do not give precedence to are paying by credit cards, next are choosing the same brands furniture , and buying from the same shops respectively. The factor used in purchasing to buy furniture of Laos samples, Is the most important to usability long lifetime and durable. Next is the quality of the products and warranty are factors to take into the least, when buying furniture is the second payment was the location of the shop. And the brand of the product, which can be that the samples will take into the quality of products. The payment will focus on its minimum priority, because Laos people is the most cash to spending.
Factors in buying furniture among for Laos people
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The factors of making decision that most of the Lao respondents give precedence to are long useful lives and endurance as mean value: 4.76, next are quality of the products 4.74, and guarantee as 4.63 respectively. The factors which the respondents least give precedence to are payments by installment’s programs as mean value is 3.33, next are the location of the shops as 3.50, and brands of the products as 3.59 respectively. We can see that the respondents mainly consider quality of the products, and the payment by installments is the least important factor because Lao people prefer paying by cash.
Factors in buying furniture of Laos people
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For most of the respondents’ favorite decoration style, we found that decoration in modern style is the highest proportion ,which is 43% of all respondents, especially groups of 18-22 years old and 23- 29 years old people who like decorating houses in modern style are 44%, and 46% of the respondents in the ranges of age respectively. Next are contemporary style as 21%, and Asian/tropical style as 19% respectively. However, if considering according to income levels, we found that most of the respondents with low to moderate-income people and moderate-income people like decorating houses in modern style, but high-income people like decorating in modern and contemporary styles in similar proportions.
Favorite home decoration styles
Contemporary Modern Asian Topical
American Country European Classic
Garden arrangement and craft behavior From the survey, we found that most of the respondents do not have gardens in the house, and they rarely arrange the gardens for beauty. The respondents who have gardens in their houses are 35% of the respondents that is about 80% in this amount always have planting or gardening activities while 20% hardly do these activities. For handicraft, about 59% of the respondents said that they have never done or have barely done. There are only 5% that always do handicraft, and 36% of the respondents occasionally do the handicraft.
Planting and gardening
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About repairing house appliances by themselves, 46% of the respondents occasionally repair by themselves. 35% have never done or barely done, and 19% always repair by themselves.
Self’s appliances’ maintenance for Laos people
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Pet care Most of Lao respondent still prefer dogs to other pets. The respondents who feed dogs are 58% which the average is two dogs per a household. For cats and fish, there also are some people feed them, but the proportions are less than dogs as 22% and 16% respectively. And it is found that they hardly go to the pet shops. 69% of them said that they have never gone or almost never gone to the pet shops before, and 28% said that they rarely go. For people who always go to the pet shops, there is only 2%. People who do not feed pets, the reasons are they do not like pets, the dwellings are not appropriate, and high expenses.
The proportion of people who have pets
"VIENTIANE, LAOS" BY LYDIE
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Travel habits Lao respondents like to travel to natural tourist attractions. More than 38% like to go to sea, islands, and beaches. There are 29% like travelling to mountains, and 20% like tourism with activities.
Favorite tourist attrition
For frequency of domestic tourism, most of them travel about once a year or longer than that by going with families in 2-4 days, and like to use their own cars for travelling is 64%. Next is about 22% using rented cars and taxi service, and only 7% using busses, next is 3% using airline. For frequency of travelling abroad, most of the respondents about 40% have never traveled abroad. People who travel abroad, most of them travel less than once a year. They like to go to China-Japan-South Korea, and in Southeast Asia, especially with friends and families in 5-7 days, and like to travel by planes with normal airlines. About 23% of the respondents travel abroad by cars, and about 14% of all travel by low cost airlines.
How to travel in domestic
In the part Laos people traveling, which reflects the increasing income, which will travel for tourism, business and other purposes.
Popular countries they have to go
"VIENTIANE, LAOS" BY LYDIE
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For activities that Lao respondents like to do on holidays, most of them like to stay at home and do some activities with their families, next is hanging out. Besides, moderate to high-income people like to travel, go shopping, and work more than moderate to low-income people who go travelling only 5%. Another interesting activity of Lao people were going picnic that is affected by past generations, and inherits to this generation. Lao people will invite members of family and friends to go picnic outside their homes in many places like fields, mountains, waterfalls which Lao people think that it is an important activity which make good relationship in their family members and friends.
Popular activities on holidays
Saving and investment habits 99% of the respondents spend money in going shopping by cash. However, there are still people who have credit cards as 47%, and 53% of all never had the cards, the respondents will beheld the 1-2 cards. About saving of the respondents, they will deposit cash at the bank as 74% of all the respondents. For investing in gold, there are 16% and 6%of all invest in immovable property and insurance, and most of them are also moderate-income people. The proportions of saving of the respondents are around 10-20% of their incomes. Next are less than 10% of their incomes. For using credit of the respondents, there are 7% of all respondents using credits that most of them are credits for buying general consumer goods as 30%. Next are credits for business as 28%, and personal credits as 19% respectively.
"THE GIBBON EXPERIENCE AND HUAI XAI-000" BY CHRISTIAN HAUGEN
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Buying behavior
Financial and saving behavior
Lao people mainly like spending money by cash as 100% because of Lao people’s habit is, “Do not like getting into debt”, so they do not like using credit cards. From the research’s results, almost all the respondents still mainly buy things by cash. In every level of income, there is 0.7% of the respondents spend money by credit cards, and the rest use cash.
Most of Lao respondents save money by depositing cash in the banks in every level of income as 48% of all the respondents, and saving cash are 26%. Moreover, there is gold investing as 11%. Investigating in buying insurance and immovable property has similar proportions as about 4%. Investing in funds and shares is 3% which most of the respondents are moderate to high-income people.
How to pay
Saving money
For saving proportions of the respondents are at 10-20% of incomes as 34%. Next are less than 10% of the incomes as 28%, and 2030% of the incomes as23% respectively. For using credits of the respondents, the users are 7% of all the respondents which most of the credits are for buying general consumer goods as 30%, next are business credits as 28%, and personal credits are 19% respectively.
"20110907-DSC_0482" BY PEDRO ALONSO
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Contributors Assoc. Prof. Dr. Kullapapruk Piewthongngam Director Asst. Prof. Prasert Vijitnopparat Deputy Director Dr. Nimnual Piewthongngam Deputy Director Dr. Suthin Wianwiwat Deputy Director Mr. Supakorn Sirisoontorn Senior Analyst Mrs. Chonthicha Weeraphan Aunsri Analyst Ms. Suwattana Pikulnee Analyst Ms. Kanokporn Teebua Analyst Ms. Kamonchanok Makcharoen Analyst Ms. Keerati Thaweeshup Analyst Mrs. Tharittiya Chanhom Statistician Ms. Sangob Sermna Statistician Mrs. Nichanan Eiamphet Support team Ms. Sutteeya Nopwinyuwong Support team Ms. Nattaya Srihanam Support team Mr. Ponlawit Noosrikaew Graphic Designer
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About the Book Consumer behavior in Southeast Asia is constantly shifting. The CLMV Pulse book series provides the most up-to-date insights on consumer behavior in Cambodia, Laos, Myanmar, and Vietnam based on qualitative analysis of surveys and focus group discussions. This book, part one of four, examines the consumer behavior of Laos living in Vientiane on topics including: education, work and personal finance, food and drink, health and medicine, shopping and leisure, and house and home. The insights presented are invaluable for anyone interested in understanding the current lifestyles of the Laos in Vientiane.
Office of Small and Medium Enterprises Promotion (OSMEP) Esaan Center for Business and Economic Research (ECBER) Faculty of Management Science, Khon Kaen University, 123 Mittraphap Road, Nai Muang, Khon Kaen, Thailand 40002 52
Khon Kaen University