Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Thai Online Retail Booms as E-Commerce Giants Compete for South East Asia

Online sales are up more than 100 percent, as estimates suggest internet retailing could be worth $65 billion by 2020.
Lazada | Source: Lazada
By
  • Bloomberg

BANGKOK, Thailand — Thailand has seen an explosion of internet shopping in recent years as consumers become more tech savvy. And if that's anything to go by, e-commerce in Southeast Asia is taking off as well.

Online retail sales in Thailand of everything from washing machines and televisions to fish sauce are growing more than 100 percent, far outpacing purchases made at traditional stores, where sales are rising about 10 percent.

That’s down to a combination of stronger and faster internet speeds in the country and the success of online merchants, like Lazada. Thailand’s third-biggest mobile-phone company, Total Access Communication Pcl, estimates that Thais spend up to six hours a day on social media websites, like Facebook and Youtube.

Thailand is the only country in Southeast Asia that breaks down retail sales data into an online category, providing a useful guide of what e-commerce growth may be like in the region, according to Maybank Kim Eng Holdings Ltd.

ADVERTISEMENT

While online sales in Southeast Asia have been growing strongly, they still account for less than 4 percent of overall retail purchases, Maybank economists Chua Hak Bin and Lee Ju Ye said in a report.

Bigger markets, like China and South Korea, already have higher penetration rates of online retailing of 16 percent and 18 percent respectively. That shows the potential for Southeast Asia, where e-commerce sales could grow to 5 percent to 10 percent of overall retail purchases over the next five years, according to Maybank.

Alibaba Group Holding Ltd. founder Jack Ma recently signed up to be a member of a government panel in Indonesia tasked with steering the e-commerce industry in Southeast Asia's most-populous nation. Macquarie Research estimates online retailing in the country can reach $65 billion by 2020.

The surge in e-commerce and a lack of official data means the health of the consumer in Southeast Asia may be underestimated, according to Maybank. Tracking consumer patterns will involve more than just looking at official retail sales, it said.

By Melissa Cheok; Editors: Nasreen Seria, Enda Curran

WF6AKN4F5RCK7OJGVWGZOCNOSQ
In This Article
Topics
People

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Retail
Analysis and advice from the front lines of the retail transformation.

How Rent the Runway Came Back From the Brink

The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.


Why Esprit’s Ambitious Rebrand Fell Short

The company is in talks with potential investors after filing for insolvency in Europe and closing its US stores. Insiders say efforts to restore the brand to its 1980s heyday clashed with its owners’ desire to quickly juice sales in order to attract a buyer.


How Adidas Sambas Took Over the World

The humble trainer, once the reserve of football fans, Britpop kids and the odd skateboarder, has become as ubiquitous as battered Converse All Stars in the 00s indie sleaze years.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
The Business of Beauty Global Awards - Deadline 30 April 2024
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
The Business of Beauty Global Awards - Deadline 30 April 2024