Kaidee aims to break even in 2019

Kaidee aims to break even in 2019

Sales boost attracts advertising injection

Kaidee boasts of a positive performance in the first half of 2016. PATTARAPONG CHATPATTARASILL
Kaidee boasts of a positive performance in the first half of 2016. PATTARAPONG CHATPATTARASILL

Kaidee.com, Thailand's biggest online marketplace, is hopeful of breaking even in 2019 after starting its operation in 2011.

The company will focus more on the automotive, property and agricultural sectors, seen as the top three fastest-growing categories, said chief executive Tiwa York.

With the growth of sales transactions and increasing product lists, Kaidee has attracted more digital advertising.

After six years of operations, Kaidee now draws 7 million visitors per month and 11 million application downloads.

The company aims to double its number of sellers from 1.5 million in 2016 to 3 million this year.

"The online classified market in Thailand is still in its infancy with 1.5 million sellers out of a 68-million-strong population. It can expand further to 6 million sellers," said Mr Tiwa.

He said in a developed market, online classified players need seven to 10 years to be successful.

Starting from the second half, Kaidee has sought to generate revenue from native advertising, a form of paid media adopted by content marketers, including video advertising.

The company offers value-added service to online sellers who want to have their products appear prominently on its site. Such promoted products, which are seen by an average of 5,000 people per day, cost 50-400 baht.

In the first half of 2017, Kaidee generated 30 billion baht in online transactions with 900,000 product items. It found that half of its total sales value, or 15 billion baht, came from the automotive sector. Its first sub-brand, called "rodkaidee", which allows helps users sell their vehicles and is soon set to expand into commercial vehicles, was introduced in May.

A new sub-brand will also be launched for the categories of property and agriculture.

Mr Tiwa said the top five popular sellers out of the 264 categories are mobile/tablet, real estate, cars, fashion and motorcycles.

Kaidee's highest traffic period is Tuesday from 7-10pm, while its top five most popular search terms are: MSX, PCX, Adidas, Coach and Luang Por Ngern (amulets).

In 2016, Kaidee's total sales transactions reached 80 billion baht. Of Kaidee's sellers, 70% are individuals who want to peddle first or second-hand products and the rest are professional traders.

Mr Tiwa said the company has also revamped its mobile app to attract those aged 18-24. At present, the bulk of its users are 25 and older.

Kaidee has also broadened its offline footprint with a pop-up event, "Kaidee Swap Meet market", to be held at MBK on Sept 2-3 to bring buyers and sellers together.

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