Thailand’s online shopping market share expected to triple within five years
In late September, Thai retailer Central Group officially launched a new e-commerce joint venture with Chinese company JD.com.
The $ 500 million JD Central development, open to the public after a soft launch in mid-June, said online orders were 15% higher than expected at the time of the official launch as the company seeks to increase. the number of articles. available online at 1m in the near future, up from 10,000 in September.
New investment to boost e-commerce market growth in Thailand
With plans to have five warehouses operational by the end of the year and an automated retail store in Bangkok next year, along with promises to offer same-day delivery to the capital and surrounding areas, officials of the company identified a potential market of 25 million people at the end of 2019.
Such a development could lead to more competition for established e-commerce operators, led by the Lazada Group, a subsidiary of Chinese tech giant Alibaba, and Singaporean multinational Shopee.
The development follows the announcement in April that Alibaba, which has been active in Thailand since 2016, would invest $ 320 million in a digital free trade hub in Thailand’s Eastern Economic Corridor, the area to serve as a hub. -form to connect regional and global markets with Thais. agricultural products.
Banks are adjusting against a backdrop of predicted increase in online shopping
The new developments in e-commerce come against a backdrop of positive expectations for the growth of online shopping, which industry figures predict will account for 10% of Thailand’s retail trade over the next five years, up from around 3% currently.
The e-commerce segment is expected to grow 8.5 percent this year, according to a report released by the Electronic Transactions Development Agency in July, with a business-to-consumer market value reaching BT 3.1 billion ($ 94.1 billion). dollars).
This expansion is supported by the high level of Internet penetration, recorded at 82% by the social media marketing and communications agency We Are Social, well above the 58% average in South Asia. East. Meanwhile, a survey by the Krungthai State Bank found that around 80% of the population owns a mobile phone, providing a solid platform for the growth of e-commerce.
In addition, a survey released in April by consulting firm McKinsey found that digital banking penetration had increased 200% over the previous two years to represent 36% of the population.
Recognizing the growing demand for mobile finance solutions, Thai banks are preparing to expand their range of digital products.
National institutions Kasikornbank and Siam Commercial Bank released updated versions of their mobile banking apps in October, which include extensive payment and trading options.
The move towards electronic financial services and e-commerce led the two banks to announce earlier this year their intention to close 10% of their branches, as 90% of their money transfers are now made through online applications. .
In addition, Krungthai also launched its new mobile banking app in late October, as part of efforts to double the number of mobile accounts it operates to 10 million by next year.
New investment to boost growth of e-commerce market in Thailand | Thailand 2018 | Oxford Business Group