Thai e-commerce forges ahead

Thai e-commerce forges ahead

Market consolidation to continue, says study

A man learns about a mobile app's support for online trade. E-commerce will make up an estimated 15% of Thai retail sales by 2024, Bain says. TAWATCHAI KEMGUMNERD
A man learns about a mobile app's support for online trade. E-commerce will make up an estimated 15% of Thai retail sales by 2024, Bain says. TAWATCHAI KEMGUMNERD

Thailand's online market will account for 15% of retail sales in the country by 2024 after registering 3.8% last year, says Bain & Co.

Thailand now ranks second in Southeast Asia in terms of e-commerce transaction value and market size, said Sebastien Lamy, a Bain partner and expert in the firm's digital practice.

The local online retail market will continue to consolidate until only a few players remain, as occurred in China, South Korea and the US.

"In the past 12-18 months, Southeast Asia was at an inflection point for the online retail market where supply and demand intersected," Mr Lamy said.

A Bain study found that 150 million people in Southeast Asia are digital consumers, 23 million of whom are in Thailand.

More than 35 million of the 150 million are high-value users with strong purchasing power who shop online frequently. These users are aged 26-40 and live in major provinces.

Some 60 million digital consumers fall into a special category, such as beauty addicts, wellness shoppers or online travellers.

Another 55 million are traditional urbanites who do research online but don't shop.

Up to 100 million have made purchases online, with Thailand accounting for 11 million of those.

"The rapid increase in adoption of smartphones and other connected devices, as well as strong 3G wireless broadband coverage, have continued driving consumers toward digital," Mr Lamy said.

In addition, e-commerce websites and application service providers could enhance their in-store experience for online shoppers.

Mr Lamy said the expected value of Southeast Asia's online retail market in 2015 was roughly US$6 billion, of which $1.4 billion stemmed from Thailand, making the country the region's second-largest market after giant Indonesia ($1.7 billion).

But Thailand's online retail market accounted for just 3.8% of overall retail sales, a smaller proportion compared with Singapore (5.5%), China (14%), Western Europe (14%) and Britain (25%).

Do you like the content of this article?
COMMENT

From pigs’ heads to duck, Bangkok shop offers Lunar New Year treats in jelly

As people get ready to celebrate the Lunar New Year, a dessert shop in Bangkok is doing a roaring trade by moulding coconut milk jelly into pigs heads, grilled duck, steamed chicken and other items often served in a traditional feast.

18:05

Russia says US failing on Ukraine but more talks possible

MOSCOW: Russia said Thursday that the United States was failing to address its main security concerns over Ukraine but left the door open to further talks to ease tensions.

17:45

Bank of Thailand detects no surge in bad loans, eyes JV for bad assets

The Bank of Thailand (BoT) has not detected any signs of a surge in non-performing loans (NPLs) after imposing various measures to support debtors as the economic activity is hit by coronavirus outbreaks, a senior official said on Thursday.

17:41