Easing in e-commerce market growth

Easing in e-commerce market growth
Easing in e-commerce market growth

Major on-line platforms much less affected by dip

Mr Thanawat, left, and Siravit Chayavanich, Priceza co-founder and head of Priceza Money, attend the corporate’s occasion on Thursday.

Thailand’s e-commerce market is anticipated to expertise slower growth from this yr’s estimated 18%, dipping to single digits in 2023 as extra buyers return to shops after Covid infections eased, says the Thai E-Commerce Association (Theca).Thanawat Malabuppa, the affiliation’s president, stated the full worth of e-commerce is heading in the right direction to succeed in 817 billion baht by the tip of the yr, representing a rise of 18% over 2021.
The outlook for subsequent yr isn’t as promising, he stated.
“Next yr the market is anticipated to develop by single digits,” stated Mr Thanawat, who can be chief government and co-founder of Priceza Group, a buying search engine and comparability platform with a presence in six international locations in Southeast Asia.
He stated e-commerce market growth has been on a rollercoaster through the pandemic. While the e-commerce market expanded 140% in 2020, the speed of growth declined to simply 75% final yr.
Among the elements contributing to slower growth was a shift in client behaviour as retail shops and buying centres started to reopen, stated Mr Thanawat.
Sales growth in 2022 amongst main on-line platforms equivalent to Lazada and Shopee mustn’t differ significantly from the degrees recorded final yr, he stated.
The prime three product classes dominating the e-commerce market this yr are digital devices, dwelling and dwelling gadgets, and wonder and style merchandise.
“Big retailers reported vital growth in revenues because the authorities relaxed restrictive measures. The variety of gross sales is nearly comparable with the pre-pandemic stage,” stated Mr Thanawat.
“We can see extra shoppers are returning to in-store buying. After such an extended interval of lockdown, individuals had been determined to spend extra time outdoors in the true world.”
However, e-commerce’s position in supporting enterprise stays important, he stated. Half of shoppers who store in-store utilise info from on-line sources, stated Mr Thanawat, including influencer advertising and marketing continues to make a big contribution to client decision-making.
Another potential enhance for the e-commerce market is the restoration of the tourism sector, he stated.
As extra expatriates and long-stay vacationers go to the nation, they are going to be eager to seek out on-line platforms that present them with an environment friendly buying expertise, stated Mr Thanawat.
Regarding the latest rate of interest hike, he stated the e-commerce market wouldn’t really feel a lot affect as a result of it’s unlikely shoppers would cease buying on-line.
Mr Thanawat pointed to different Southeast Asian markets the place charges had risen to three%, greater than double Thailand’s present fee of 1.25%.

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