Market Trends of Thailand E-commerce Logistics Industry
Increasing Adoption of Electronic Payments
Increased internet and mobile phone use, as well as enhanced logistics and e-payment systems, which increased consumer trust to shop online, are the elements driving this expansion. The Digital Economy Promotion Agency estimates that the e-commerce market will generate USD 6,384 million in 2023.
By 2023, the market for mobile commerce is projected to reach USD 25 billion, growing at a compound annual growth rate of 12%, driven by expanding smartphone penetration (about 40%) and a well-established preference for mobile over desktop buying.
A budget has been set aside by the Thai government as part of its Thailand 4.0 policy with the express intention of building a broadband network for every hamlet nationwide. This national broadband network will support modern economic development by fostering eCommerce and bridging the digital gap.
The government also plans to develop the newest digital application platforms to support and advance online operations including e-government, e-payments, and the e-marketplace. The ultimate objective is for the locals to begin operating eCommerce enterprises for their goods and services.
Adoption of digital wallets should be boosted by government support as well as rising smartphone usage. Debit and credit card use for online purchases is still common in Thailand. Although it still exists in the Thai e-commerce business, the use of cash on delivery is decreasing.
Digital Marketing and Social Media Boosting the Market
In Thailand, there are currently 48.6 million internet users, a rise of 5.9 million from 2021 to 2022. Additionally, there are 56.85 million users of social media in Thailand and 95,6 million mobile connections. Facebook, YouTube, Line, Instagram, Twitter, and Tiktok are the social media sites that are most popular in Thailand.
Around 50 million people use Facebook, 45 million use Line, 42.8 million use YouTube, 35.8 million use TikTok, 35.70 million use Facebook Messenger, 18.5 million use Instagram, 11.45 million use Twitter, and 3.3 million use LinkedIn in Thailand.
The coronavirus pandemic accelerated Thailand's transition to a "cashless society," which included a rise in the use of online payment methods by merchants. Online payments are frequently utilized at restaurants and shopping centres, but they are now commonplace; even street carts allow customers to pay online or by scanning a QR code.
The 4.0 program in Thailand, which promotes the digitalization of Logistics business and payment systems, will also have a significant impact. The Thai government promotes the usage of Internet banking by disbursing state aid to citizens via the "Paotang App" e-payment platform.
Social media and smartphone apps are used by Thais to explore new products before making purchases. With 36.60 million consumers currently making direct online purchases of consumer products, Thai consumers are already quite prevalent.
The strongest online shopping categories continue to be apparel, food & beverages, personal & household care, electronics, and fashion.
