Thailand is a global pioneer, leading the way with an ever-increasing e-commerce marketplace within Southeast Asia, worth USD900 million (THB 31.7 billion) in 2015 and expected to grow up to 16 times that figure, about USD11 billion, by 2025. With the e-commerce market forecasted to expand over 18% in the next few years, the country is officially in a digital retail boom. (Electronic Transactions Development Agency (ETDA), (e-commerceIQ)
Better connectivity speeds up e-commerce market
With close to half the population in Thailand connected to their smartphones, 3G and 4G technologies have accelerated the e-commerce potential. Thailand’s appetite for technology is only matched by the country’s thirst for retail and the combination is setting a fast pace for the future. To keep up, brands need to jump on platforms such as iTS COOLER to fast-track sales within the expanding digital shopping landscape. With 5G on the way, time and speed are vital factors in B2C success and e-commerce is influencing what consumers buy too.
Half of online purchases in the city are via smartphones. In the provinces, this figure reaches 85%. (Bain report)
More disposable income boosts Thai retail market
With a population of some 68 million, Thailand promises a rich variety of consumer markets to penetrate, particularly in the mid-to-high-end range. With one of the fastest-growing economies in Southeast Asia and GDP increasing too, disposable income is ready and waiting to be spent on e-commerce brands offering products the Thai market wants – quality fashion, sports, lifestyle and tech products from abroad. With the number of Asian billionaires exceeding those in the US for the first time in 2016, according to the Hurun Report’s Rich List, there is also a rising tide of brand-hungry, tech-savvy millennials in Thailand, craving iTS COOLER products and a platform that fits their generation.
It’s estimated the Thai e-commerce market will be worth around USD51 million by 2025. (e-commerceIQ)
High street vs E-commerce
Whilst traditional retail outlets are still big business in Asia’s brand-name capital, a great amount of time, effort and investment is required to set up a shop. There are corporate and logistical hurdles to clear too. Add to this the rapidly changing retail landscape in Bangkok, the alienation of many would-be consumers who live outside the city, and the risks can rise whilst market penetration can halt at blocks in the road. Demand for e-commerce in developing parts of Thailand such as Chonburi promise retailers unmined potential.
Global brands need a localised digital platform to penetrate Thailand’s growing consumer markets.
With the global luxury market set to hit around USD326 billion by 2020 (Bain), the power of e-commerce has never been stronger.
iTS COOLER offers local and international retailers an immediate portal to reach Thai audience without any market entry costs. Visit iTSCOOLER.asia for details.