Issue 55

The online market is seeing a massive surge that allows Thai businesses to increase their custom base across the ASEAN region.

Regardless of what occurs on international markets, e-commerce is growing each year. A Frost and Sullivan survey carried out in July 2014 predicted that e-commerce in Singapore, Malaysia, Thailand, Indonesia, Philippines and Vietnam will experience annual growth of US$34.5 billion (1.1 trillion baht) or 37.6% from 2013 to 2018.

The Electronic Transactions Development Agency (ETDA) supports this claim. It says that e-commerce sales in 2015 is expected to reach US$57.3 billion (2 trillion baht), a growth of 3.65% on the previous year.

“Although the offline economy has declined, e-commerce has never declined,” says Professor Dr. Jinjuta Issariyapat, Special Advisor for e-commerce. “In contrast, it has increased continually.”

Dr. Issariyapat explains that the nature of e-commerce is developing rapidly.

“It’s not only online shopping, but it is also a tool to combine online and offline trading together (‘omni-commerce’),” she says. “This helps traditional offline trading be more convenient and efficient. Moreover, social media or social commerce is also used to boost sales.”

According to Dr. Issariyapat, e-commerce in ASEAN is most developed in Singapore and Malaysia where customers buy products and pay online via credit card.

“Some other [ASEAN] countries mostly use e-commerce to view products as online catalogues, then return to use offline trade channels to buy products,” she says. “Overall, ASEAN people are starting to buy items online more and more.”

Currently in ASEAN, IT equipment, fashion items, cosmetics and dietary supplements are popular online goods, however Dr. Issariyapat believes there is great scope for expansion.

“The future for the ASEAN market lies in service businesses such as Grab Taxi, as well as outsourcing for technicians, housekeepers or healthcare staff because ASEAN countries are facing a problem with getting service staff,” she says. “Start-up companies play a significant role in this type of business.”

Despite closer regional cooperation in cross-border e-commerce, Dr. Issariyapat believes that cross-border taxation, laws and regulations present obstacles to e-commerce that need to be resolved.

“If these limitations can be solved, I believe that e-commerce in this region will grow,” she says. “Products from Thailand that CLMV (Cambodia, Laos, Myanmar and Vietnam) countries consider as premium will certainly go well. It will not only add value to our country, but also give an opportunity for Thai SMEs to enter international markets.”

For more information, please visit: www.etda.or.th, www.frost.com

Words by: Patcharee Taedangpetch

 

 

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