Thailand's e-commerce market is forecast to top 1 trillion baht in 2016, driven by the rise of smart devices, the entry of foreign vendors and the government's commitment to the digital economy, says the Commerce Ministry.
A web page shows electronics deals offered by Lazada. With widespread adoption of smart devices, Thailand's e-commerce sector is poised for strong growth. Thai e-commerce is expected to surpass 1 trillion baht in value annually by 2016. KOSOL NAKACHOL
"Thailand's e-commerce will continue to thrive for years to come," Pawoot Pongvitayapanu, president of the Thai E-Commerce Association, said yesterday to open the Business Development Department's Thailand Online Mega Sale event, which runs through Dec 30.
"We expect the industry to grow by at least 20% this year and 35-40% in 2015 with the entry of e-commerce entrepreneurs and the government's policy of investing more aggressively in broadband expansion and digital technology," Mr Pawoot said.
Based on figures from the National Statistical Office, Thailand's e-commerce market is worth 744 billion baht, consisting of business-to-business (79.8%), business-to-customer (19.3%) and business-to-government (1%) sectors.
Small businesses (up to five people) account for 66.8% of e-commerce, with medium-sized firms (six to 50 people) making up 26.6% and large enterprises (more than 50 people) comprising 6.6%.
Transactions via mobile are expected to account for half of e-commerce sales this year, up from 16% last year.
Since 2013, a handful of foreign e-shopping websites have set up business in Thailand.
These include Alibaba.com, the world's largest wholesale e-commerce company and which recently teamed up with Kasikornbank, Thailand's fourth-biggest bank by assets, to help support Thai SMEs entering China's e-commerce market.
Thailand's e-commerce market is also tipped for intensified competition, as Taobao — an online shopping portal under Alibaba and similar to eBay — is aggressively expanding in Southeast Asia to sell cheap Chinese-made products to ethnic Chinese in Singapore and Malaysia.
Whichai Phochanakij, deputy director-general of the Business Development Department, said fashion products and cosmetics were particularly popular items, with more than 400,000 online shoppers a year.
"E-commerce is growing popular in Thailand. Several modern trade providers such as Big C, Tesco and Central have sold their products through this channel," Mr Whichai said.
The Thai E-Commerce Association has proposed an e-commerce development plan to the government, aiming to increase the number of new Thai and foreign entrepreneurs and develop the digital economy more quickly.
The association is committed to building up consumer confidence in online shopping, Mr Pawoot said.