11.11 The Global Shopping Festival plays an important role in accelerating the development of e-commerce in Thailand.
Editor’s note: This article is from WeChat public account “7:5 degrees” (ID: Asia7_5), author 7:5 degrees.
Next you will see:
How big is the e-commerce market in Thailand
Which players are participating?
Problems and developments in Thai e-commerce
“Double Eleven” is finally here! The creation of a “consumer day” by Alibaba’s “out of thin air” has become a world-class consumption phenomenon. This day is not only an important day for the Chinese, but also a major incremental market for Southeast Asia as a key layout for Chinese e-commerce. It is also very important. More and more local e-commerce platforms and consumers have also been involved, which shows that its influence is huge.
Lackada Thailand Deputy Chief Executive Jack Zhang said: “Lazada has been the first country to bring the concept of shopping festivals to Southeast Asia since 2012, and we are proud to see the 11.11 Global Shopping Festival has become the expected annual event. And play an important role in accelerating the development of e-commerce in Thailand.”
Lazada, Shopee, and JD Central have all offered more fun and interesting games during this year’s Double Eleven to collect various vouchers to win discounts, even live shows, sweepstakes, etc. This not only enhances the sense of participation of consumers, but also enables Thai e-commerce to set a number of shopping records during this period, which is outstanding in the Southeast Asian market.
Therefore, “Double Eleven” is a test of the potential consumption of the market. Thai e-commerce can continuously refresh the record locally, which is inseparable from the efforts of the e-commerce platform, but more importantly, it depends on its own market. The power of this can lead to a question. How big is the e-commerce market in Thailand?
How big is the Thai e-commerce market?
As EastSouth Asia’s second largest economy, Thailand is one of the regions with the largest number of Internet users in the region. The country has a population of 69 million, of which 47 million are Internet users, accounting for 68% of the total. The growing Internet user base is The e-commerce market in Thailand is the ideal growth environment for manufacturing.
Data Source: Google TEMASEK Southeast Asia e-Conomy
In 2018, Thailand’s e-commerce market reached US$3 billion, with an expected CAGR of 30% at 2015-2025 and US$13 billion in 2025.
Data Source: Google TEMASEK Southeast Asia e-Conomy
The above data, the facts all convey a signal that Thailand’s e-commerce market has great potential. In fact, there are also a large number of players in the Thai e-commerce market, and the competitiveness is increasing.
Which players are participating?
Head player
Lazada TH
Lazada is arguably the largest e-commerce platform in Southeast Asia, and Thailand is one of the first markets Lazada entered in 2012. From a traffic perspective, Lazada TH is Thailand’s most popular e-commerce platform, with monthly traffic estimates of more than 70 million, which almost dominates half of Thailand’s integrated e-commerce traffic.
Shopee TH
Shopee was established in Singapore in 2015 and is part of the Tencent Department. As one of Southeast Asia’s leading e-commerce platforms, Shopee focuses on localization in Thailand, from local languages to ecosystems, serving local cultural thinking and user experiences.
JD Central
JD CentralLaunched in Thailand in September 2018, it has become one of the top ten online markets in Thailand. JD and the Central Group have established a $500 million joint venture, JD Central, which controls the largest group of shopping malls and department stores in Thailand.
The small compass once said that “the Southeast Asian market is like a caged dumpling, which has a small dumpling with different fillings, and the taste is different.” The same is true for the e-commerce sector in Thailand. In addition to leading head players, there are also some players who look at other “taste” buns. And the online shopping developed in the Thai market, the performance of the rising star is also remarkable. Therefore, the small compass also organizes other Thai e-commerce players for everyone, I hope that the captain can find a buns that match his appetite and “taste”.
Comprehensive E-commerce
Central Online
Central Online is a comprehensive online e-commerce company that sells a wide range of content including beauty, footwear, sports, watches, and home products, and offers a wide selection of internationally renowned brands. In addition, the Central Inspirer shopping guide will push users to various article categories to provide more shopping ideas and inspiration.
Weloveshopping
It has been an online shopping store or online store owned by True Corp., a leader in Thai telecommunications, for more than 10 years. Collaborate with a number of well-known brands, including more than 40,000 shops covering up to 2 million trend products. With a well-established secure payment system and large-scale marketing, it also has a good reputation among buyers.
Tarad
Tarad.com The C2C e-commerce website, founded by Pawoot Pongvitayapanu in 1999, is the oldest e-commerce site in Thailand. In 2009, it sold most of its shares to Japan Lotte for $35 million. Later, Lotte held Its nearly 70% of the shares. In 2016, it was sold by Lotte and transformed into an enterprise solution service provider.
Chilindo
Chilindo was established in 2013 and has offices in Thailand (Bangkok headquarters), Kuala Lumpur, Vietnam and China. “Auction” is Chilindo’s biggest feature. Through the gamification of online shopping, it provides a unique experience, users can enjoy the auction without any fixed price.
WeMall
Ascend officially launched the online market on June 6, 2016 WemallThe investment of 8.5 million US dollars (300 million baht) was positioned as the first “online market brand” in Thailand. Wemall has replaced Ascend’s iTruemart.com and now has more than 3,000 brands participating in the platform.
Powerbuy
Power Buy is a subsidiary of the Central Group, which was founded in 1996. Power Buy is committed to selecting quality products from more than 800 world-renowned brands, covering a wide range of products that meet the needs of consumers’ “digital lifestyle.” It mainly sells electrical appliances, IT products, mobile phones, gadgets and electronic products, and has 90 branches across the country.
Vertical e-commerce
Zilingo (fashion e-commerce)
Zilingo was established in 2015 as an e-commerce website that focuses exclusively on fashion goods, including fashion and lifestyle items. From 2015 to the present, five rounds of financing have been made, with a total financing amount of over $300 million, while the latest $226 million is the highest amount of financing. Currently, there are sales centers in Singapore, Thailand, Indonesia, Hong Kong, and also want to expand the Australian market.
Pomelo (fashion e-commerce)
Pomelo was founded in 2013 to run an online fashion website that sells its own branded apparel in Southeast Asia. Although Pomelo ships to more than 40 countries around the world, its business is mainly targeted at Thailand, Indonesia and Singapore. In 2019, the $52 million Series C financing was completed. In 2017, it was jointly awarded by JD.com and Provident Capital Partners of Indonesia, and US$19 million from Lombard Investments.
Notebook Spec(NBS)
Notebook Spec was established in 2008 and is a Thai e-commerce platform that sells computers (based on laptops) and related 3C accessories.
Advice (3C e-commerce)
Advice is a retail and wholesale distributor of smartphones and IT products with more than 350 branches throughout Thailand and Laos. As the leading online distributor of IT products in Thailand, Advice is also one of the most popular e-commerce sites in Thailand. There are over 19,000 3C and IT electronics or accessories available.
JIB (3C e-commerce)
JIB is also a well-known 3C e-commerce company in Thailand. JIB was originally a Thai company that operates computer and IT related products. Later, it developed its own e-commerce website and has become the leading online sales of technology products and accessories in Thailand. One of the platforms.
Blisby (handicraft e-commerce)
Blisby is a marketing website created by a group of people who love art, crafts, and passion for fashion and creative products, bringing together artists from all walks of life to become the largest art community website, and also want to strengthen artists and designers. Communicate with craftspeople and be able to show and sell their work to more people.
HomePro (Home E-commerce)
HomePro was originally a traditional offline home decoration chain retailer. It was established in 1995 and is well-known in Thailand. After developing its website into an e-commerce platform, it can sell all kinds of household products, tools and accessories online. It also provides services related to architecture, refurbishment, building construction and one-stop residences (one-stop shopping centre). In Thailand’s e-commerce platform, its monthly flow is estimated at around 2.8 million.
Se-ed (Book E-commerce)
Se-ed was originally a book and magazine publishing company, and later created its own e-commerce website, becoming the leader in online book sales in Thailand, as well as selling other related products.
Munkong Gadget
Munkong Gadget was established in 2006 and is a chain of Thai-owned audio equipment and related accessories. With its own e-commerce platform, Munkong Gadget has also become the leader in online sales of audio equipment in Thailand.
Questions and development
If you want to develop e-commerce platform, the payment problem is a big problem. According to the data of aCommerce operated by Thai e-commerce, the current cash on delivery is still the preferred payment method for Thai consumers. Under such consumption habits, it will not only lead to The rate of return is very high, and additional costs are incurred, greatly reducing efficiency. Therefore, turning the national payment habits over is a problem that all major platforms must strive to improve in the future.
Data Source: aCommerce
In addition to the payment problem, along with the development of the entire e-commerce, there is also a logistics express business. At present, there are many courier companies in the Thai market that provide “next-day” services. More and more potential companies are Beginning in Thailand, even if it is the “world’s first city” like Bangkok, the possibility of completing the next day is still there, but the key development areas are still limited to Bangkok and several key cities, in Bangkok. In some areas of remote areas, there are still roads that are not yet available. It is impossible to accomplish such a mission in the short term. Therefore, vigorous development of infrastructure is also essential in the future.
I believe that the above two problems have been solved. The development of e-commerce in Thailand will become smooth and smooth. In addition, players will make strategic layout and marketing strategies in this process and continue to add value to the business model. Some competitive advantages are differentiated from the opponents, so that they will not be eliminated by the market and will benefit more from the gradually evolving Thai e-commerce market.
(The cover image is from pexels)