The retail IT sector in Thailand is gravitating towards online sales, with half of distributors' revenues expected to come from the online channel by 2023, says major IT distributor Advice IT Infinite.
Physical stores are likely to be transformed into complete end-to-end service sites, Advice indicated.
"There is a rapid change of consumer behaviour towards online purchases because of the pandemic and the closure of malls. Users are now willing to buy IT products costing more than 10,000 baht via the online channel," Chukkrit Watcharasaksilp, chief sales, product and marketing officer of Advice, said in a virtual media briefing on Thursday.
Sales of IT products via the online channel will account for 50% of the distributors' revenues by 2023, two years sooner than was predicted in an earlier forecast, he said.
In 2020, online sales accounted for 19% of Advice's revenue, but the proportion has now risen to 25%.
"We want to see online sales reaching 50% of the company's revenue in line with the industry trend," said Mr Chukkrit.
Since the second half of last year, the company has placed more emphasis on online sales through the firm's website and e-marketplaces, such as Lazada, Shopee, JD Central as well as other social commerce platforms.
The company also arranged a drive-through service to enable customers to pick up products and supports delivery and onsite services for customers.
"Advice has adjusted the marketing plan into more aggressive action and increased its ability in the online-market," he said. "Confidence in brands will allow clients to trust bigger IT purchases such as computers, notebooks and more."
Mr Chukkrit said the company has been less affected by the pandemic since 90% of its stores are standalone shops located upcountry rather than in malls, which have been shuttered due to the pandemic.
In the future, physical IT stores will continue to operate, catering to a broad range of services, including IT solution demonstrations, IT training and repairs, he said.
"Customers can order products online and pick them up at shops. They may come to seek consultation or after-sale services at the shops," said Mr Chukkrit.
He said the company also aims to drive more revenue from corporate and government sectors.
Corporate customers accounted for only 3% of the firm's revenue last year, which is still small.
The firm is expanding branches to cover areas of 300-400 square metres upcountry, such as in the provinces of Nakhon Ratchasima and Sri Sa Ket, which can then provide training for software usage and demonstrate technology solutions for customers.
Advice expects revenue growth of 10% this year, said Mr Chukkrit. The firm booked 13.5 billion baht in revenue last year mainly through sales of notebooks and tailor-made computer desktops.
He said the shortage of computers and components still threatens the growth of the retail IT segment.
"If the shortage continues, we might miss our growth target," said Mr Chukkrit.
With the impact of the pandemic, the company expects its initial public offering to be pushed back from the fourth quarter of this year to 2022, he said.