Thailand has seen an explosion of online shopping in recent times as consumers have turn out to be more tech-savvy. And for what it’s value, e-commerce in Southeast Asia can also be picking up steam.
Online retail sales in Thailand for every little thing from washing machines and televisions to fish sauce are growing by greater than 100%, far outpacing brick-and-mortar stores, where sales are up about 10 percent.
This is as a consequence of a mixture of stronger and faster web speeds within the country and the success of online retailers comparable to Lazada. Thailand’s third-largest cell phone company, Total Access Communication Pcl, estimates that Thais spend as much as six hours a day on social media sites comparable to Facebook and YouTube.
This is great news for each e-commerce players within the region and consumers. It also signals a tipping point for Southeast Asia by way of e-commerce and what to anticipate within the near future.
What’s happening in Thailand and Southeast Asia without delay is just the tip of the iceberg relating to the opportunities available. While online sales in Southeast Asia are growing strongly, they still account for lower than 4 percent of overall retail purchases, Maybank economists Chua Hak Bin and Lee Ju Ye said in a report.
Larger markets like China and South Korea have already got higher e-commerce penetration rates, at 16 percent and 18 percent, respectively.
This shows the potential of Southeast Asia, where online sales could grow to 5-10% of all retail purchases in the subsequent five years, in response to Maybank data.
Thanks to investments within the industry to expand marketing and operational activities, the region has seen strong growth in the net sales segment.
Alibaba Group Holding Ltd. founder Jack Ma recently signed up be a member of a government panel in Indonesia tasked with guiding the e-commerce industry in Southeast Asia’s most populous country. Macquarie Research estimates that online retail sales within the country could reach $65 billion by 2020.
