Lotus's wants to strengthen its online business to become Thailand's first retailer offering fast delivery, within 1-3 hours, aiming to increase its online revenue by 30% by year-end.
The company believes e-commerce platforms will not replace traditional store business, said Tarin Thaniyavarn, president of e-commerce at Lotus's.
"In five years, I estimate purchasing products online will account for roughly 40% of business from Thais. In order to survive, offline stores must transform themselves, focusing on elevating the customer experience," he said.
The company launched the "Lotus's SMART app" in 2022, featuring more than 30,000 items including fresh food, dry groceries, and beauty and personal care.
As the trend of online shopping grows, orders from its app have increased, exceeding 1 million online orders in January 2024.
The most popular products are fresh foods, including raw materials for cooking, comprising 50%, followed by dry products, said Mr Tarin.
Shoppers use the Lotus's app 3-4 times per week on average, tallying bills of 200-300 baht per use. Shoppers that visit branches average one visit per week, he said.
Mr Tarin said Lotus's is now the first retailer in Thailand to offer fast delivery from large and small stores, within 1-3 hours from 2,100 branches nationwide, including 200 hypermarkets, 200 mid-sized branches and 1,700 Lotus's Go Fresh stores.
For large items, customers can opt to pick them up at any convenient store location, or choose delivery from a hypermarket the next day.
"All deliveries are free with no minimum purchase required. Lotus's also offers a daily campaign throughout the week, such as cash and discount coupons," he said.
In Bangkok, the company will provide delivery within a three-kilometre radius of radius of a branch, covering the entire delivery area of the city, said Mr Tarin.
With the fast delivery feature combined with the promotional campaign, the company believes its platform can compete with foreign delivery platforms in Thailand.
The Lotus's app has 10 million downloads as of November 2023.
He said the company aims to reach 15-18 million downloads by the end of this year.
Lotus's online revenue is around 10% of total revenue, or 10 billion baht, said Mr Tarin.
He said the company targets a 30% revenue increase by the end of this year.