Department of Business Development bolsters SME shift to e-commerce
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Department of Business Development bolsters SME shift to e-commerce

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People shop in April 2023 at Sampheng market in Bangkok, which is known as an early stronghold  of local SMEs. (Photo: Wichan Charoenkiatpakul)
People shop in April 2023 at Sampheng market in Bangkok, which is known as an early stronghold of local SMEs. (Photo: Wichan Charoenkiatpakul)

The Department of Business Development is stepping up efforts to support e-commerce adoption by small and medium-sized enterprises (SMEs), with growth of e-commerce expected to reach 750 billion baht in 2025.

Auramon Supthaweethum, director-general of the department, said Thailand's e-commerce market is expected to reach nearly 700 billion baht in 2024, up from 634 billion last year, driven by a significant increase in business registrations and consumer adoption of technology for retail purchases.

E-commerce business registrations have increased the past six years, as has the value of registered capital.

This year 7,393 e-commerce businesses registered with capital of 43.7 billion baht, up from 1,713 entities with capital of 2.27 billion last year.

"This swift expansion presents both opportunities and challenges," she said. "Those who adapt quickly and harness technology can reach a broader customer base, boost sales rapidly and grow their enterprises more easily. However, businesses that fail to adapt risk missing out on opportunities and may struggle to remain competitive."

Recognising these risks and opportunities, Ms Auramon said the department launched various projects to enhance SMEs' skills and potential.

These initiatives aim to ensure robust growth, adaptability to change and readiness for the expanding e-commerce market, she said.

One programme is called "Smart Trader Online", designed to equip a new generation of entrepreneurs with online trading knowledge. Now in its fourth year, the 2024 iteration focuses on modern marketing tools such as affiliate marketing.

This popular strategy benefits both sellers, by increasing sales without substantial investment, and individuals without capital or products, enabling them to generate income through online sales.

Ms Auramon said many of these entrepreneurs may have excellent products, but lack the funds to hire influencers to promote them.

The department, in collaboration with e-commerce platforms TikTok Shop, Shopee, Lazada and NocNoc, provides a diverse range of digital training and upskilling courses for entrepreneurs, such as online marketing tools and techniques, running sales campaigns and building strong networks with leading brands and creators to improve their growth and performance.

As part of the post-pandemic recovery, the department raised the potential of community products under the "Smart Local" concept by developing distinctive products that reflect local wisdom and creativity to increase economic value by leveraging cultural assets.

This approach also intended to promote the country's soft power, she said.

The pilot concept was implemented in three provinces -- Phayao, Maha Sarakham and Nakhon Si Thammarat -- with expansion planned to other tourist provinces to stimulate the economy and help small businesses.

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