According to the analysis, a large young population, the rise in Internet and smartphone penetration, coupled with growing consumer confidence in online payments are some of the factors attributed to the growth.
Moreover, the ongoing COVID-19 outbreak is turning online shopping into a ‘new normal’ in Thailand, hence the value of ecommerce transactions is expected to grow at 14.8% in 2020 – the highest since 2017. Besides, the fear of over contracting COVID-19 and the subsequent social distancing measures that were taken by the government are expected to contribute to the increase in online shopping.
Furthermore, the COVID-19 pandemic has also resulted in a rise in the adoption of ecommerce by retailers, as ecommerce company Lazada – which hosts 200,000 merchants on its platform – added 26,000 new merchants in March 2020 alone.
Additionally, to increase ecommerce penetration in the country, Thailand is bringing offline local merchants to the online channel. For instance, in May 2020, Thailand’s Commerce Ministry collaborated with online platforms including Thailandpostmart, Lazada, JD Central, and Cloudmall to enable farmers to sell fruit online.
The benefits associated with online shopping such as ease and convenience also position ecommerce as a preferred mode for purchases in the future, GlobalData stated.
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