Thai e-commerce poised to touch $58b in 2015; rise in online shopping, 4G services to push growth

The ETDA’s survey cites that top three verticals that account for the highest income from e-commerce in 2015 are accommodation and food services worth 658.9 billion baht ($18.39 billion), followed by manufacturing 350.29 billion baht ($9.78 billion) and retail and wholesale 325.08 billion baht ($9.07 billion).

The B2C e-commerce in 2015 will rise 15.29 per cent from 410 billion baht ($11.44 billion) in 2014, and the B2G will surge 3.96 per cent from 390 billion baht ($10.88 billion) last year. However, the B2B e-commerce is expected to slightly shrink by 0.34 per cent from 1.23 trillion baht ($34.33 billion) in 2014.

“Thai e-commerce market remains highly attractive as more people open up to online shopping. Also, 4G will drive the growth of the e-commerce market in Thailand,” ETDA’s chief executive officer Surangkana Wayuparb said.

In early November, Ascend Group announced to invest 5.3 billion baht ($147.92 million) to expand its e-commerce businesses, ‘iTrueMart’ and ‘Weloveshopping’, into ASEAN countries.

It plans to invest in warehouses, logistics and marketing activities in the Philippines this year, followed by six other countries – Indonesia, Malaysia, Vietnam, Singapore, Myanmar and Cambodia – in 2016.

“We aim to be the e-commerce market leader in ASEAN by 2018,” Punnamas Vichikulwongsa, president of Ascend Group, told local media.

A report by Euromonitor International states that the B2C e-commerce market for retail in the AEC will surge by 20 per cent per year from nearly $5 billion this year to $7 billion in the next two years.

Considering Thailand as a centre of the ASEAN, foreign investors have eyed on the opportunities to use Thai e-commerce market as a springboard to other countries.

Japan’s e-commerce solution provider Transcomos, for example, recently made a joint venture with Ookbee, a Thailand-based leading e-bookstore platform, to tap into the e-commerce business under Ookbee Mall.

Even the world’s top e-commerce site Alibaba is in talks with Thailand’s Crown Tech Advance to co-invest in both logistics and e-commerce in Thailand. However, both companies have not finalised the deal yet.