Thailand is one of the market leaders in e-commerce

The pandemic has forced smart device users to become active consumers and participants in e-commerce. Thais are leading the way on many fronts. This is especially true for the use of banking apps, ordering, and paying for goods and services.

The statistics are confirmed by a new series of reports published in cooperation with the digital agency We Are Social and the web-based social networking service Hootsuite.

Global data from last year shows half a billion new users on social media, more than 1.3 billion years spent online, and trillions of dollars spent in e-commerce.

The figures and percentages in the report demonstrate the active participation of the Thai population in global e-commerce consumption statistics.

• Thailand ranks first with 68.1% of users in banking app usage (transactions per month, in the 16-64 age group). This is the third year that the kingdom has held a strong lead in this indicator. South Africa and Poland are in 2nd and 3rd place with 64% and 57.7%, against a global average of 38.7%.
• Thailand ranks 2nd for mobile payments (45.3% of Thai users paid via mobile devices in January). Leading the way is Hong Kong, with Taiwan in 3rd position.
• Also in 2nd place are Thai users in terms of volume of purchases via mobile gadgets (74.2%). The leader with almost 80% in Indonesia. The global average is 55.4%.
• In terms of online shopping overall, Thailand ranks 3rd (83.6%), behind only about 3% and 2% of the category leaders Indonesia and the UK.

In many categories, the Thai population is not at the top of the rankings, but is in the top dozen:

• Using QR codes - 5th place (1 - Singapore);
• ordering food online - 10th place (1 - Indonesia);
• ordering transportation services - 12th place (1 - Indonesia).?

Thailand's e-commerce market leaders

Introducing the four key e-commerce players in Thailand who are now the e-commerce leaders in the country.

aCommerce

Thailand and Southeast Asia's single online platform for logistics and e-commerce management is aCommerce.

Launched in May 2013, the company assists online retailers in reaching their desired markets with its delivery and courier services. Marketing, consultancy, customer relations, warehousing, and delivery services are just some of the services in the large list of 'end-to-end solutions' the company provides to e-commerce brands.

The growing business is preceded by the startup's solid reputation. aCommerce has worked with more than 200 clients and brands, including major companies such as Adidas, Unilever, L'Oreal, Microsoft, and Uniqlo.

The aCommerce startup has thus achieved an annual growth rate of 188% since 2017. The company, staffed by 1,400 employees and based in several locations in Asia, has taken significant steps towards dominating the Southeast Asian e-commerce logistics space.

The company plans to further build on its success in e-commerce logistics with a bid for an IPO in a few years.

Lazada

Founded in 2012, Lazada is without a shadow of a doubt Thailand's leader in online shopping. Its presence in six other Southeast Asian countries also makes the company the region's Alpha. The unicorn start-up is evolving into e-commerce to become an active competitor for Amazon and JD.

Lazada brings together 18,000 international and local brands and brings them to its online marketplace, creating Thailand's vast e-marketplace with the largest selection of sellers.

Alibaba's impressive cash infusion and partnership with Lazada is a clear indication of its continued belief in Lazada's legitimacy as a powerful business partner and competitor in the region.

Pomelo

Based in Bangkok, start-up Pomelo is a trendy e-commerce platform that is changing Thailand's approach to affordable online fashion. Launched in 2013, the online shop has since dedicated itself to offering a wide range of clothing.

Pomelo is a mobile service, with 85% of transactions processed via mobile devices. The company also emphasises logistical convenience by offering free delivery on orders over 990 Thai Baht. Its product offering has strong consumer demand from more than 50 countries.

One thing that puts Pomelo above conventional online clothing shops is its ‘innovative network of fitting rooms’. These fitting rooms are spaces in the offices of Pomelo's partners and include co-working spaces, cafes, and gyms.

Addressing one of the key challenges in e-commerce, startup Pomelo has pioneered a different way of trying on clothes bought in e-commerce by allowing customers to pick up their orders at partner fitting rooms. Customers can reorder their clothes at pick-up points if they don't fit, paying only for the clothes they take home.

Powerbuy

Startup Powerbuy first started as an electronics department store in Thailand but has now expanded to more than 90 branches across the country. It started in e-commerce by setting up a branded online shop. Its online platform brings together more than 200 brands and provides customers with a range of over 20,000 different products.

The online business model of this start-up is similar to that of Pomelo: it uses an omnichannel B2C supply chain, integrating its online and offline services. As a result, online customers of Powerbuy need only wait one hour when using Click & Collect, a delivery option in which purchased online products are collected at Powerbuy outlets.

Powerbuy also offers free same-day delivery nationwide with its extensive branch network. Its physical locations also offer product repairs to take care of consumers' technology problems.

Powerbuy has also recently partnered with the Rajamangala Lanna University of Technology to provide solar power to the communities of Ler Kra, Om Koi, and Chieng Mai, supporting further pushing the penetration of electronics and technology into Thailand's more rural areas.

Thailand's retail landscape is undergoing a long overdue transformation toward e-commerce. The infrastructure and demand are there, and with the help of technology giants such as Alibaba, Thailand's best e-commerce platforms will soon be able to reach far beyond their local operations.

Conclusion?

Thailand will not lose ground and will continue its massive shift to e-banking, mobile banking, and e-wallets. Meanwhile, the most active age group of internet users of financial services, according to research, are those aged 35 to 44.