Thailand's e-commerce market is experiencing unprecedented growth, positioning itself as one of the most competitive landscapes in Southeast Asia. With local sellers joining forces with international giants, the stakes are higher than ever for retailers trying to capture consumer attention and loyalty.
According to Thanawat Malarbpupha, CEO of Priceza, the upcoming year 2025 is set to be transformative for online shopping. He points out, "The e-commerce market is growing continuously, and many brands are now competing, resulting in increased competition across various aspects." Current estimates suggest the Thai e-commerce market has grown its share to approximately 25% of overall retail, with projections expecting the market's value to soar to 2 trillion baht by 2030, up from 10.7 trillion baht anticipated for 2025.
Priceza’s insights categorize the e-commerce channels within the country, showing marketplaces like Lazada and Shopee dominating with 50% market share. They are followed by video commerce at 20%, social commerce at 18%, quick commerce at 8%, and e-tailers at just 4%. This diverse gaming field allows numerous players to coexist, albeit not without friction and rivalry.
Meanwhile, international sellers are increasingly penetrating the Thai market, often leveraging lower operational costs to offer competitive prices. Thanawat elaborated, explaining how international sellers exploit customs exemptions for products valued under 1,500 baht, rendering local businesses at risk of losing market share. He provides evidence, sharing findings from their tools illustrating how Chinese sellers dominate their categories, claiming 95% of certain product sales, drastically outpacing local competitors.
The competitive arena is not just about price, as innovations like “same day delivery” and efficient logistics become industry standards. This demand for fast service has forced brands to rethink their operations. Thanawat warns, "Those who can deliver quickly will win this market, as consumers are becoming accustomed to expecting quicker service." Major players are ramping up their logistics capabilities, with platforms like Shopee even launching their express delivery service to keep pace with expectations.
The explosive growth of social media influencers plays a considerable role in shaping consumer habits as well. Research shared during the Priceza Conference indicates 83% of consumers have made purchases based on influencer recommendations. Thanawat predicts 2025 will also witness the rise of affiliate marketing as brands realize the financial benefits of influencer partnerships. He states, "2025 will be the year of affiliate marketing as influencer recommendations drive 83% of consumer purchases." This trend will likely fuel the growth of content creators within Thailand, pushing brands to adapt their marketing strategies accordingly.
Navigational shifts necessitate local retailers to familiarize themselves with various consumer behaviors and preferences. Thanawat stresses the importance of e-commerce listening, which allows merchants to monitor market trends, improve their offerings, and understand competitive dynamics. Adapting business models is increasingly pivotal, with retailers exploring new tactics and exploring innovative marketing approaches to capture market share.
By the time 2025 rolls around, the intensity of competition within Thailand's e-commerce is expected to reach unprecedented levels. Local entrepreneurs face challenges but also opportunities as they adapt to heightening demand and increasing interactivity with diverse consumer groups. Thanawat summarizes the outlook by emphasizing, "We are entering a new era where consumers are spoiled. The expectation for speedy delivery will push the envelope of competition within Thai e-commerce."
With these shifting tides, it seems only the most innovative and adaptive retailers will survive and thrive, giving rise to a shopping experience far beyond what consumers currently know.