NocNoc, an e-marketplace selling home products and services, has embraced artificial intelligence (AI) to offer consumers a personalised service experience both online and offline while adding new lifestyle categories to its platform to capitalise on a home and living market estimated to be worth around 450 billion baht.
Better Bee Marketplace Co, the operator of the platform, is also aiming to launch an initial public offering (IPO) by 2028.
The value of the home and living market this year is expected to grow 3% from 450 billion baht in 2023, matching the growth rate recorded last year, said Better Bee Marketplace chief executive Chollak Mahasuweerachai.
Despite the economic challenges, consumers continue to make home improvements or buy new products while there are still new residential and commercial property projects being developed upcountry, she added.
The online home and living market is expected to grow 10% this year, which is higher than the overall home and living market but slightly lower than the 11% growth recorded last year.
The online home and living market is projected to account for 5% of the total market in 2024, up from 3.5% in 2023, Mrs Chollak said.
She said this year NocNoc would focus on providing a personalised AI-driven service experience both online and offline to serve customers with products to meet their preferences. As consumers return to a sense of normalcy following the pandemic, the platform will focus more on tapping the offline channel via its own existing pop-ups stores and events.
The company has an overseas footprint in Cambodia, Indonesia, Laos and Malaysia. It plans to launch its IPO within 2028 in order to further penetrate the Asean market, Mrs Chollak noted.
The NocNoc platform reported that last year its sales grew by over 100%, attributed mainly to its wider and deeper access to various customer groups and its expansion to the residential and commercial markets.
The business-to-customer (B2C) market accounts for 70% of the company's revenue while the remainder is generated by the business segment. It also earned revenue from commission fees and other additional services.
The company's gross merchandise value (GMV) has reached over 5 billion baht and is expected to rise to 6.5 billion baht in 2024. It has 5,000 sellers, 600,000 items and over 6,000 partners. Mrs Chollak said the company's average basket size stands at between 10,000-15,000 baht.
She said the company's goal is not short-term profit but to support the ecosystem.
"We will continue to invest in technology to increase efficiency and embrace AI to build a good experience for customers and sellers."
Anupong Tasaduak, the company's chief commercial officer, said the majority of the company's customers reside in Bangkok and its suburbs and are aged between 25 and 45. Nevertheless, demand for the company's products is growing nationwide. The NocNoc platform attracts 3 million visitors per month.
Moreover, the company also offers a home solution service, which is a one-stop consultancy service to assist customers when choosing products and provide them with design ideas. It also offers a business solution service. This resembles the home solution service but is aimed at shops, restaurants, cafes, hotels, and offices.
Mr Anupong said the company is confident that NocNoc will have sales growth of 40% in 2024, which would be equivalent to sales worth 6.5 billion baht.