Digital business estimated to reach B895bn this year
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Digital business estimated to reach B895bn this year

Digital business estimated to reach B895bn this year

Thailand's digital business still has great potential for growth, with the value of goods and services purchased via digital platforms (business-to-consumer) estimated to total 895 billion baht this year, up 17.9% year-on-year, according to a recent study.

Thanavath Phonvichai, president of the University of the Thai Chamber of Commerce, said there is still plenty of room for growth for local digital business if the government has clear policies to support and promote the sector.

"Foreign investment is increasing and within 5-10 years the digital economy is expected to boost the Thai economy," he said.

"The digital economy is currently worth 2 trillion baht, accounting for 13% of GDP."

According to Mr Thanavath, goods and services purchased through digital platforms in 2023 will reach 1,485 baht per person per month, with the number of people buying online tallying 50.2 million.

The total value of online purchases for the year is estimated at 895 billion baht, increasing by 17.9% from the previous year, which was valued at 759 billion.

"After the new government is formed, we believe in the sector's growth potential if there are policies to promote the digital economy," he said.

He cited the latest survey on digital marketing and the digital economy that interviewed 1,227 members of the public and 395 business owners, carried out nationwide from April 8-18.

The results found the majority of people (51.4%) have a healthy understanding of digital technology. Only 4.1% do not understand it at all, with most people in this group aged between 55 and 72.

In terms of the importance of using digital technology in daily life, the majority (72.3%) of respondents use it extensively.

The groups that use digital technology the most are Gen Y and Gen Z, while 15.5% use it moderately and 3.9% do not use it at all.

The most common use of the internet in daily life is via mobile phones, followed by personal computers.

Some 70.3% of respondents reported buying or selling products and services through digital platforms. E-marketplaces such as Shopee, Lazada, Kaidee and Grab were the most popular online shopping channels.

However, 29.7% of respondents did not buy or sell products through digital platforms.

In terms of the different age groups' purchasing behaviour on digital platforms, Gen Z purchased the largest number of services, with payment mostly via mobile banking apps because they are convenient and easy to use.

Monthly average spending was between 1,000 and 1,500 baht, averaging 1,485 baht.

Food and beverages, clothing and jewellery were the most purchased products.

The availability of various products was the main reason for purchasing through digital platforms.

The survey found the majority of respondents (81.7%) use digital technology for financial transactions because it is convenient and fast. This includes the ability to transfer and withdraw funds anytime and anywhere.

In terms of consumer behaviour in the digital age, communication and coordination are mainly done through online platforms such as Line, Facebook, IG, YouTube and TikTok, with Line the most widely used platform at 95.9%, followed by Facebook at 88.3%.

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