E-commerce predicted to record 10% of Thai retail sector

Experts say there is space for e-commerce platforms to grow in Thailand’s retail sector. & thinsp; CHANAT KATANYU

The extremely competitive e-commerce market in Thailand is expected to drive development in online retail, representing a 10% share of the overall retail market in five years from only 3% today, state leading players.Big names such as JD Central, a joint venture between Thailand’s Central Group and Chinese web giant JD.com, are set to introduce in the month ahead.The e-commerce platform plans to operate in tandem with Tencent Thailand and Pomelo, business where JD.com is a shareholder.Jirasak Chirathivat, head of client method for JD Central, stated

greater competitors in Thailand’s e-commerce market will boost the retail company eventually.Moreover, big information and expert system will make it possible for the “personalised shopping experience

“and effectively integrate online and offline patterns. Voice command online shopping through wise speakers will also play a role, said Mr Jirasak. “Cost is not the only element for customers, experience and reveal shipment are likewise essential motivations,”he said.JD Central’s site, www.jd.co.th, prepares to release officially next month after the soft launch in

June.”We remain in the procedure of investing in a 2nd logistics centre that serves countrywide delivery.

We aim to accomplish the requirements seen in China, where JD.com delivers before 11am in the morning when users put their orders prior to 11pm the night in the past, “said Mr Jirasak.At this phase, JD Central is concentrated on using more items online, with plans for 1 million products in the future, up from around 10,000 items.JD.co.th has two earnings sources– selling their own items and gaining margins for e-retailing and an e-marketplace that accommodates other online merchants, from which JD.com makes earnings from commission fee.While other e-markets waive commissions, JD Central concentrates on helping merchants make successful sales.Cross-selling for items found on Central’s online style website, Looksi will likewise be offered soon, he said.The company plans

to line up the Thailand marketing strategy with Tencent, as JD.com is a shareholder of China’s Tencent.However, he stated the business will focus

on online channels before transferring to incorporate offline products and over 10 Central Group systems such as Central, Robinson

, SuperSports to sell in its platform.He anticipates online profits will be significant profits to Central in the future.David Jou, primary executive of Pomelo, a Thai online

fashion e-commerce website, said e-commerce will move to integrate more deals online, from where players will be able broaden their physical presence.Recently, Pomelo broadened its own retail shops with two branches in Bangkok and prepares to

have 10 stores this year, with a branch due to open in Singapore next year.Mr Jou stated e-commerce in Thailand still has space to grow, as it represents just 3-5%of overall retail market compared with 30-35%in China and 15%in India.Arisa Thavee, head of e-commerce operations at cosmetics website Konvy, stated customer behaviour is mixed.Some shop online and get chosen products in-store, while others opt to go in-store to try items prior to purchasing online.Fourth quarter peak season Kawin Prachanukul,

co-founder and country head of Singapore-based ShopBack Thailand, anticipates a strong market in the last quarter this year thanks to several marketing projects from huge online

e-marketplaces, such as Sept 9(9:9), Nov 11(11:11), Nov 23(Black Friday ), Cyber Monday on Nov 16, and Online Fever Dec 12(12:12). ShopBack provides cash back for consumers under the ShopFest project that will run up until Jan 3, 2019 for online purchases from 1,500 retailers overseas, of which 150 merchants remain in Thailand.Mr Kawin stated the rebate e-commerce website has actually gained 600,000 customers since beginning operations in 2015 with aims to have 3 million users this year.He said fourth-quarter sales are generally brisk. Last year sales through the channel increased 5 times above average, and this year the boost is expected to vary 6-10 times.

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