Investors in the regional e-commerce market are having a hard time to discover their footing, attempting to distinguish value proposals and realising the sector requires a big amount of capital.The recent move by
SK World under SK Telecom to offer its 100%share in 11street Thailand to business person Chalermchai Mahagitsiri confirmed this, after 11street logged almost three years of operations in Thailand.In April, TSpace, under TCC Group, controlled by tycoon
Charoen Sirivadhanabhakdi, purchased a 51% share in Tarad.com. Tarad.com spent almost 2 years discovering brand-new strategic investors after Japan’s Rakuten offered its 51%share in 2016. Weloveshopping and WeMall under Ascend Group also opted to coordinate with Real Corp.On July 15, Lazada provided a commission-free campaign to draw in online merchants, fighting it out with newcomer JD Central and its Singaporean competitor, Shopee, which uses totally free shipping to consumers and complimentary commission to merchants.”While e-commerce competition is extreme, there is strong development potential since e-commerce penetration in Thailand is still really low,” stated Mr Chalermchai, president and president of Thoresen Thai Agencies Plc.He told the Bangkok Post that his business group is finding out the best ways to take its own niche in the growing sector.
“Today Chinese e-commerce business are progressively controling the area, however we are still confident in creating special offerings that will allow us to be a substantial e-commerce gamer,”Mr Chalermchai stated. “We won’t participate in head-to-head competitors with Chinese e-commerce gamers, but we will play to our strengths.”His company remains in the process of executing a brand-new method that will be disclosed quickly.”We will have a fresh e-commerce idea, and our company believe Thais will be excited,”
Mr Chalermchai said.11 street today is amongst the top 3 e-commerce gamers in Thailand.
“We will continue to take advantage of our existence, and if rebranding will assist improve our position, we will pursue that path,”Mr Chalermchai said.He is also thinking about setting up an equity capital arm to buy emerging and deep innovation, considering that in his view the disruptive tech organisations will change the way organisations operate.
“Organisation today is changing digitally, and we intend to belong of the modification, if not lead it, “he said.Jarit Sidhu, head of operations at IDC Thailand, a tech research study firm, said the e-marketplace organisation
is dominated by Lazada, Shopee and 11street in terms of visitor numbers.All those gamers suffered losses while investing huge on marketing
and subsidised products to bring in users and online merchants.According to Company Online, Lazada Thailand signed up a 515-million-baht loss in 2013 and a 2.1-billion-baht
loss in 2015. In March 2016, the business reported a 568-million-baht loss.Shopee Thailand had a 211-million-baht loss in 2015 and a 528-million-baht loss in 2016. 11street published a 184-million-baht loss in 2016 and a 943-million-baht loss in 2017.”This is a local video game, and this service is difficult to separate in terms of value proposal,
“Mr Jarit said.The regional e-commerce market has not developed, but it may see lower growth than China’s due to the fact that the retail service here has excellent coverage and gamers have actually adjusted to cope with online channels. “It’s difficult to anticipate how long it will take the e-commerce market to develop, as it’s quite new, similar to the ride-hailing industry, where dynamic modifications have seen players there broaden through’platformisation’to get in touch with partners,”Mr Jarit said.