E-commerce Trends and Projections in Thailand
In Thailand, 83% of consumers report making purchases based on influencer recommendations, highlighting the significant role content creators play in shaping buying decisions. The growth of "near me" or "close by" searches—up by 900% over the past two years—further underscores the importance of localization in e-commerce strategies.
E-commerce currently represents a significant portion of the retail landscape in Thailand, accounting for 25% of the total retail value. As the digital shopping landscape evolves, several key trends and projections are set to shape the future of e-commerce not only within Thailand but across the Southeast Asian region.
Market Dynamics and Growth Projections
The Southeast Asian e-commerce market is poised for substantial growth, with projections indicating it could reach 5.56 trillion baht by 2024. In Thailand, the e-commerce market is on a trajectory to hit 13 trillion baht by 2030. This growth is driven by a combination of factors, including increased internet penetration, the rise of mobile commerce, and a shift in consumer behavior towards online shopping.
Fierce competition is expected to intensify in the e-commerce sector this year, prompting businesses to innovate and improve their offerings continually. One area where competition is particularly strong is in the delivery services sector, where there is a growing demand for faster delivery options, including same-day and next-day services.
Influence of Social Media and Content Creators
Social media shopping is emerging as a major trend influencing the future of e-commerce. Platforms such as Facebook, Instagram, Pinterest, YouTube, and TikTok are at the forefront of this shift, enabling consumers to discover and purchase products directly through social media channels. In Thailand, 83% of consumers report making purchases based on influencer recommendations, highlighting the significant role content creators play in shaping buying decisions.
Thailand is home to approximately 9 million content creators, contributing to a vibrant influencer economy. Major e-commerce platforms like Shopee, Lazada, and TikTok host around 3 million local sellers, providing a robust marketplace for Thai consumers.
Evolving Retail Strategies and Technological Advances
As e-commerce continues to evolve, Thai retailers are increasingly focusing on developing their mobile apps to facilitate direct sales, moving away from reliance on e-marketplaces. This shift is supported by the rise of vertical marketplaces that cater to specialized product categories, offering consumers more tailored shopping experiences.
Retailers are also leveraging their physical store networks to enhance delivery efficiencies, enabling them to meet the growing consumer demand for quick delivery times. This strategy is part of a broader trend where businesses are using e-commerce listening tools to track competitors' prices and sales, ensuring they remain competitive in a rapidly changing market.
Consumer Preferences and Emerging Trends
Consumer preferences are also shifting towards sustainability, with 78% ranking it among their top five purchasing criteria. This trend is driving retailers to adopt more sustainable practices and offer environmentally friendly products to meet consumer expectations.
Moreover, the demand for localized experiences is on the rise, as consumers seek products and services that resonate with their cultural and geographical context. This trend is reflected in the increasing use of location-based searches, which account for 46% of all Google searches. The growth of "near me" or "close by" searches—up by 900% over the past two years—further underscores the importance of localization in e-commerce strategies.
In conclusion, the e-commerce landscape in Thailand is undergoing significant transformations, driven by technological advancements, changing consumer preferences, and a competitive market environment. As businesses navigate these changes, the ability to adapt and innovate will be crucial in capturing a share of the expanding e-commerce market.