The global economy was hit hard by the pandemic. Thai businesses from top to bottom, especially tourism and retail commerce, suffer from the loss of revenue and customer base. Back when we were in quarantine, eCommerce had become mainstream for Thai. 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.
For newcomers on Social Commerce, here are what to look out for after the viral outbreak.
Changing Customer Behavior
Since lockdown policies were in place in all of Asia and all over the globe, users have been spending more time on social media platforms such as Facebook, Instagram, and Twitter. The numbers impacting the E-Commerce and social commerce landscape significantly increased on a global scale.
According to insights by Hootsuite in April 2021, 76.8% of users aged 16 to 64 report having purchased products on the web. Thailand ranked #3 worldwide in eCommerce adoption or percentage of users who bought products online via any device in the past month at 83.6%. During the COVID-19 outbreak, an average of 47% of the global sample spends more time shopping online in recent weeks.
As the virus hit Thailand, Southeast Asian E-Commerce giant Lazada recorded a 100% growth in product sales in Thailand from mid-March to mid-April, according to Bangkok Post. Users are spending 11% more time browsing shopping websites, including Facebook Shopping per visit than before the lockdown. Lazada Thailand expects eCommerce to become a norm in the new normal.
Long story short, we can expect more people to shop online regularly even after the pandemic.
Shopping Sectors Impacted by the Virus
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%.
Hootsuite also reported a significant increase in global eCommerce interests for food & groceries products, household essentials products, and personal care products. Supermarket website traffic doubled during the lockdown compared to the first 6 weeks of 2020.
It would be intriguing to see how the purchasing trends and platform evolve in a post-pandemic world when things start to get back up.
As digital payment technology keeps developing, Thai shoppers are adopting a cashless life and demand is rising day by day. Only 12% of internet shopping was paid in cash. The Mobile Point-of-sale (POS), QR Code Payments, and E-Commerce Wallet segment is expected to show a transaction value growth of 23.0% in 2021, as shown in data collected by Statista. Total transaction value is expected to show an annual growth rate (CAGR 2021-2025) of 10.94% resulting in a projected total amount of US$24,127m by 2025.
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. The New Normal 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.
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