The global economy is hitting the rock from many changes in many countries since the pandemic periods. Thai businesses are also fully stepping into the eCommerce market and becoming mainstream for Thai people. Social shopping platforms such as Shopee, Lazada, Facebook Shopping, JD Central, and Alibaba have taken the center stage. Many traditional retailers had to adopt the idea to continue their business.
Let’s dive into the information that might help you understand better about eCommerce trends in Thailand!
Changing Customer Behavior
Since lockdown policies were set in all of Asia and all over the globe, users have been spending more time on social media platforms such as Facebook, Instagram, and X. The numbers impacting the E-Commerce and social commerce landscape significantly increased on a global scale.
According to insights by Statista, retail e-commerce sales are estimated to exceed 4.1 trillion U.S. dollars worldwide in 2024, while this figure is expected to reach new heights at 6.56 trillion in 2025. For Thailand, Thanawat Malabuppha, the CEO and co-founder of priceza.com, says the customer succeeded in hitting the revenue at 1.1 trillion baht and the most popular shopping channels among Thai consumers in past year are Shopee (75%), Lazada (67%), and TikTok (51%).
Long story short, we can expect more people to shop online regularly far beyond the next 2 or 3 years.
Every Sectors Has Joined
Earlier in Pre-COVID-19 2020, the most popular online shopping category in Thailand was travel & accommodation, amounting to $6.12 Billion in 2019. The fastest-growing sector was food & personal care at +22%.
With strict travel restrictions enacted in the region, tourism suffered a 51% shrinkage in eCommerce transactions in the past year. Instead, food & personal care flourished at +41% since people are likely to stay in place and take care of their health.
The business that grew over the past few years including electronics, fashion, food, beverages, DIY hardware and furniture. Household essentials have become more popular with an increase of 22.2% which might be a solid proof that people spend more time in their home than before and will become their behavior eventually.
Going Cashless
As digital payment technology keeps developing, Thai shoppers are adopting a cashless life and demand is rising day by day. Bangkok Post reported that Thailand ranks third in the region for carrying less cash, with only 47% of the content of each Thai respondent's wallet being cash. The survey results also revealed that Thailand leads the region in mobile banking app usage frequency. A remarkable 97% of Thai consumers said they use mobile banking apps at least once a week.
This might affect the demand on both online platforms and traditional retailers alike. Marketers need to make digital payments for their services easy for customers.
What’s Next for Marketers?
As Southeast Asian eCommerce giant Lazada predicted, online shopping is becoming more significant than it already is. People will shop online not just because of certain products that need to be ordered on the internet, but because they can buy stuff with their fingertips.
The demand will rise exponentially. Marketers need to adjust their strategies to catch up with the changing eCommerce landscape and facilitate customers who are widely adopting digital payment technology into their everyday life. Now is just the beginning of a whole new world that everyone needs to live in, and the future is yet to be seen. Keep yourselves prepared.
Frequently Asked Questions
What exactly is eCommerce?
eCommerce is the buying and selling of goods or services via the internet, as well as the transfer of money and data to complete the transactions. It is also referred to as electronic commerce or internet commerce.
What are the 3 types of eCommerce?
The three main types of eCommerce are business-to-business (such as Shopify), business-to consumer (such as Amazon) and consumer-to-consumer (such as eBay).
Which is the largest eCommerce company in the world?
Since it was founded in 1994, Amazon has become a household name when it comes to online shopping. Today, the company has the largest revenue in the world.
Why is eCommerce so successful?
Customers get real-time updates of new product launches, exclusive deals and promotional schemes, as well as the one-touch purchase option, which has caused an exponential growth in online commerce. It's possible to build a more intimate customer-business relationship with location-specific offerings of the mobile device.
What is the future of eCommerce?
It will continue to boom around the globe. They are expected to reach more than $6.5 trillion by 2023. By 2021, an estimated 2.1 billion shoppers are predicted to buy goods and services online. And interestingly enough, many of these online shoppers live outside the U.S.
How do eCommerce websites make money?
Another way eCommerce businesses make money vital to their long-term growth is through targeted ads that aim for customers and profitable niches right from the start. Using product-specific ads has helped eCommerce companies to grow. Remarketing ads have also served as catalysts for the growth momentum.
Need Help Planning Thailand eCommerce strategies for the New Normal?
Does your brand need marketing help to withstand the eCommerce tides? Our team at Sphere Agency is here to help you design the most effective platform, penetrate every major platform like Lazada and Shopee, plan elaborate content marketing, and more. Contact us today.
