What's happening in E-commerce in Thailand?

As iPrice's 'Map of E-Commerce Thailand' clearly shows, the competition in this sector is getting stiffer as we enter the third quarter of 2017.

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A Map of E-Commerce Thailand

iPrice

The competition in the Thai E-commerce market is getting stiffer as we enter the third quarter of 2017. Amazon has announced that it is entering Southeast Asia, starting in Singapore. This entry could significantly alter the e-commerce market, not only in Singapore but also the whole region.

Meanwhile, iPrice has released its first interactive E-commerce study (The Map of E-commerce Thailand), comparing 38 e-commerce websites in Thailand. Users can filter e-commerce information based on different parameters, such as traffic (based on Similarweb), application downloads, and social media followers.

The data was gathered from April to June 2017. Let’s see how e-commerce has progressed in the past quarter and how it might change over future periods. Here are five interesting findings from the interactive content.


1. The King of E-Commerce in Thailand (Traffic and Social Media)

The king of e-commerce in Thailand in terms of traffic and social media followers is Lazada.
Although the company is the winner in almost every category, Lazada needs to be prepared for the entry of Amazon into Southeast Asia. Here are details of Lazada’s impressive performance during the period:

o    The highest  traffic in Thailand (41,680,000 visits)
o    The highest number of apps installed (50,000,000 downloads)
o    The highest number of followers on LINE (18,894,000 followers)
o    The highest number of followers on Facebook (17,539,000 followers)
o    The highest number of employees on Linkedin (656 employees)
o    6th in Instagram followers, definitely not its forte, but the company can still can catch up with the front-runner, which is Carnival with 261,000 followers. Lazada’s Instagram following is 84,800 as of now.

Lazada entered Southeast Asia in early 2012. With its aggressive expansion in six countries, Lazada has earned a strong reputation and has increased its customer base continually. With the advantage of operating in 6 countries, its social media numbers include people in all six countries. 

2. Top 10 websites in Thailand are mostly tech-oriented and general-purpose

Based on traffic, the top 10 websites in Thailand are general-purpose and tech websites.  

Here, smaller branded fashion sites have had an impact. Thai people who shop for fashion products buy with individual brands in mind rather than through general e-commerce sites. These brands on social media have produced far more stylish and trendy clothes than what is found on the e-commerce websites.

Konvy is the only fashion website that is listed in the top 10 based on traffic. The company offers cosmetics and skin care products. Konvy is doing a great job in closing the gap in the Thai market  in which big cosmetics and skincare websites are scarce.

3.  Fierce Rivalry

The three biggest e-commerce websites in Thailand are Lazada, 11street and Shoppe. They are all international firms that have expanded to take up opportunities in the kingdom. Fourth place is occupied by Chilindo, a Thai-based e-commerce site that shows good potential to beat international players with a one-of-a-kind service that allows customers to buy through auctions.

The rise of 11street in Southeast Asia is something other e-commerce companies should closely watch . SK Planet officially launched 11street in Thailand in February. With its competitive edge in Korean branding and product variety, 11street has been welcomed by Thais in the latest period. Plus, 11street’s aggressive integrated marketing communication e.g., outdoor advertisements in Siam BTS stations, ad displays on commuter  routes, the brand has rapidly gained recognition in Thailand and has given the company the second highest rank in traffic. Although the monthly traffic is five times less than that of Lazada, 11street CEO, Jeon Hong Cheol sees a  big opportunity for his company to become the leading Korean e-commerce firm in the market.

The second-runner-up in terms of traffic goes to Shopee, which is a customer-to-customer (c2c) business that allows customers to sell items online. It has just received a new round of funding to expand into the business-to-customer (b2c) market. Shopee focuses on mobile applications. With its intuitive interface, people can easily sell and buy once the application has been installed. The app has more than one million downloads as of June 2017. Thus, the traffic on the website has increased, garnering third place on the list.

4. Social Media Winner: Traffic, App Downloads, and Facebook

Chilindo has been operating in Thailand for 4 years and excelled in three areas compared to local players. Its unique business model allows customers to buy products through auctions that start from one Baht. Chilindo has the highest number of visitors compared to local competitors, with average monthly visits of more than three million. They have 500,000 app downloads and 3,510,000 likes on Facebook. Chilindo is very active on Facebook, posting  engaging content like videos and gifs which display the fun products they sell.

LINE King

LINE is one of the most popular platforms in Thailand. Of the top 10 e-commerce companies using LINE, 8 of them are Thai merchants. These include Wemall, Karmarts, Powerbuy, Jaymart, Pomelo, Shop 24, Central Online and Beauticool. Thailand is the only country in Southeast Asia where LINE dominates the messaging market.  Thus, international players like Lazada and Shopee must utilise the LINE application to better communicate with their Thai customers.

Instagram Queen

Carnival started as a small street fashion store in Siam Square. It rapidly grew and entered the online market with various street brands. Carnival has 261,000 followers on Instagram which beats Lazada in this platform.

Carnival invests time in creating beautiful visuals for their products. This is because they want to illustrate their products in a visually appealing way. In addition, Carnival conveniently provides detailed information on the products, such as size, colour, price, discount and contact channels.

5. Offline Stores go Online

J.I.B is a good example of how a physical store has ventured into business online. Founder Somyos opened his first computer store at Zear Rangsit. The business has since expanded to more than 140 stores.

Somyos, learned from Pawoot at tarad.com to place a call-to-action button on his website. After customers were able to order online, the outcome was surprising. Within one month, he received 800,000 Baht from his online channel. Consequently, he started to focus on e-commerce. J.I.B is sixth in traffic with 2,450,000 monthly visits.

J.I.B is followed by the most famous department store in the country, Central. It has joined the e-commerce market under “Central Online”. It is ranked seventh by monthly traffic with 2,039,500 visits. With its mission statement to bring the department store to you in just one click, Central Online will be able to utilise their fame and long history in the department store business to go up against the big players in the e-commerce space.

You can find out much more by using the interactive content map. Please go to The Map of E-commerce Thailand

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Vocabulary

  • aggressive: determined; wanting to do something very much and not letting anyone or any difficulties stop you - ตั้งใจจริง, ซึ่งมุ่งมั่น
  • alter: to change - เปลี่ยนแปลง
  • appealing (adj): attractive or interesting - ที่ดึงดูดความสนใจ
  • application (app): a program designed to do a particular job; a piece of software - โปรแกรมใช้งาน, โปรแกรมคอมพิวเตอร์
  • auction: a usually public sale of goods or property, where people make higher and higher bids (= offers of money) for each thing, until the thing is sold to the person who will pay most - การขายโดยการประมูล, การขายทอดตลาด
  • average: an amount calculated by adding several amounts together, finding a total, and dividing the total by the number of amounts - เฉลี่ย, ค่าเฉลี่ย
  • base (noun): a group of people on which someone's business, fame or power depends - ฐาน, พื้นฐาน
  • brand: a type of product made by a particular company - ตรา, ยี่ห้อ
  • business model: a design for the successful operation of a business, identifying revenue sources, customer base, products, and details of financing (Source: Google search page definition) -
  • category: a group having similar qualities - ประเภท
  • channel: a way of communicating with people or getting something done - ช่องทาง
  • competition: a situation in which people or organizations compete, i.e., try to be more successful or better than somebody else who is trying to do the same as you - การแข่งขัน
  • competitive edge: an advantage that makes someone or something more successful than other people or things - ข้อได้เปรียบ
  • consequently: as a result; therefore - ดังนั้น
  • content (noun): the subject, ideas, or story that a piece of writing, radio or television programme, computer software, etc., deals with - เนื้อหา,สาระ
  • conveniently: done in an easy way; not causing problems or difficulties - สะดวก
  • cosmetics: substances that you put on your face or body which are intended to improve its appearance - เครื่องสำอาง
  • data: facts or information used for making calculations or decisions - ข้อมูล
  • discount: a reduced price or rate - การลดราคา
  • display: an arrangement of things in a public place to inform or entertain people or advertise something for sale - การเปิดเผย, การแสดง
  • dominate: to be in control - มีอิทธิพลเหนือ ครอบคลุม ควบคุม
  • e-commerce (noun): business that is conducted on the Internet - อีคอมเมิร์ซ (การพาณิชย์อิเล็กทรอนิกส์)
  • engaging (adj): interesting or pleasant in a way that attracts your attention - ป็นที่ดึงดูดใจ
  • excel: to be very good at doing something - ดีเยี่ยม, ยอดเยี่ยม, เก่ง, มีพรสวรรค์
  • expand: to make or become larger - ขยาย เพิ่ม
  • expansion: when something increases in size, number or importance - การขยายออก
  • fame: the state of being famous or very well known - ชื่อเสียง
  • fierce: very strong - รุนแรง, ดุเดือด
  • filter (verb): to check and remove something that is not wanted; to use a special program to check the content of emails or websites before they are sent to your computer - กรองเอา (บางสิ่ง) ออกจาก
  • firm: a business or company - บริษัท
  • focus: to give attention, effort, etc. to one particular subject, situation or person rather than another - เพ่งความสนใจ
  • forte (noun): a thing that somebody does particularly well - จุดแข็ง, ความถนัด
  • front-runner: the leader in an election or a competition - ผู้ที่มีคะแนนนำ
  • funding: money given for a particular purpose - การให้เงินสนับสนุน
  • gap (noun): a difference between people or groups - ช่องว่าง
  • garner: to obtain; to get - ได้รับ, รวบรวมได้
  • gather: to bring things together that have been spread around - รวบรวม
  • general: for most cases and situations - โดยทั่วไป, โดยปกติ, ส่วนมาก
  • illustrate: to show what something is like, or to show that something is true - แสดงให้เห็น
  • impact (noun): an effect or influence - ผลกระทบ
  • impressive: something that people admire because it is very good, very large or shows great skill - ซึ่งน่าประทับใจ
  • individual (adj): considered separately rather than as part of a group - เฉพาะราย, ตัวต่อตัว
  • integrated: combining things of different types in one effective system - ที่รวมเข้าด้วยกัน
  • interactive: of a system or computer program which is designed to involve the user in the exchange of information - ซึ่งมีการสื่อสารระหว่างกัน
  • interface: the way a computer program, mobile device, etc. presents information to a user or receives information from a user, in particular the layout of the screen and the menus - อินเตอร์เฟส, การติดต่อประสานระหว่างเครื่องคอมพิวเตอร์กับผู้ใช้ เช่น แป้นพิมพ์, จอภาพ ต่างก็เป็นตัวประสานกับผู้ใช้ทั้งสิ้น
  • intuitive (adj.): knowing something from intuition or feeling rather than observation, reasoning and logic - โดยสัญชาตญาณ,โดยความรู้สึกที่เกิดขึ้นเองในใจ,โดยสหัชญาณ,โดยการหยั่งรู้
  • launch (verb): to start something - เริ่มต้น, เปิดโครงการ, เริ่มทำ
  • local: in or related to the area that you live, or to the particular area that you are talking about - ท้องถิ่น
  • meanwhile: at the same time - ในเวลาเดียวกัน
  • merchant: a person or business that buys and sells goods, especially one that trades with other countries - พ่อค้า, ผู้จำหน่าย, คนขาย
  • mission: an important piece of work that a person or a group of people has been given to do - ภาระกิจ หน้าที่
  • occupied: (of a place) controlled by a group of people, a country, etc. - ครอบครอง
  • operate: to carry out an activity like running a business - ดำเนินการ
  • opportunity (noun): a chance to do something, or a situation in which it is easy for you to do something - โอกาส
  • outcome: a result - ผล
  • parameter (noun): one of the numbers or settings that guides a computer program or app in doing its work - พารามิเตอร์, ชื่อที่ถูกอ้างถึงในส่วนหัวของฟังก์ชันหรือโปรแกรมย่อย ซึ่งจะถูกแทนที่ด้วยค่าที่ฟังก์ชันผู้เรียกส่งผ่านมาให้ ในขณะที่มีการเรียกใช้ฟังก์ชันหรือโปรแกรมย่อยนั้น
  • platform (noun): a type of media or way of distributing information , e.g., websites, newspapers, magazines, video, etc. -
  • potential (noun): possibility - ความเป็นไปได้, ที่อาจเกิดขึ้นได้
  • progress: to improve or develop, or to get nearer to achieving or completing something - ก้าวหน้า
  • quarter (noun): three months of the year on the official calendar of the government or companies - ไตรมาส
  • rank (noun): the position of somebody/something on a scale that shows how good or important they are in relation to other similar people or things, especially in sport - อันดับ
  • rapidly: happening quickly - อย่างรวดเร็ว
  • recognition: public praise and reward for somebody's work or actions, the act of accepting that something exists, is true or is official - การยอมรับ
  • region: a large area of land or space, usually without exact limits or borders - ภูมิภาค, ขอบเขต, แถบ, บริเวณ
  • release: to make known to the public - เปิดเผย, ให้ข่าว, ปล่อยข่าว
  • reputation: the opinion people have about how good or bad someone or something is - ชื่อเสียง
  • rivalry: competition between groups of people, business, teams, etc. - การแข่งขันกัน,การเป็นคู่ต่อสู้กัน
  • round: one of a series of events, activities, etc. - รอบ
  • runner-up: winning second place in a competition - รองอันดับหนึ่ง
  • scarce: not easy to find or get - ขาดแคลน, ไม่เพียงพอ, หายาก
  • statement: something that you say or write that gives information or an opinion - แถลงการณ์, คำแถลง
  • stylish: fashionable; elegant and attractive - นำสมัย, เข้าสมัย
  • trendy: very fashionable - ซึ่งเป็นที่นิยม
  • unique: being the only one of its kind - ซึ่งเป็นหนึ่งเดียว
  • utilise: to use something, especially for a practical purpose - ทำให้เป็นประโยชน์
  • variety (noun): many different types of things or people - ความหลากหลาย
  • venture: to go somewhere, especially somewhere that is unpleasant, dangerous or exciting - เสี่ยงภัย ผจญภัย
  • visual: a picture, map, piece of film, etc. used to make an article or a talk easier to understand or more interesting - ภาพ
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