Thailand is the second largest B2C e-commerce market in Southeast Asia in terms of sales and is projected to maintain this rank through 2025 due to a strong double-digit growth rate, according to a recent report.
The development of online retailing is spurred by growing internet penetration and projects aimed at improving payment and delivery infrastructure.
The report titled ‘Thailand B2C E-Commerce Market 2017’ published by yStats.com says that Thailand is the second largest economy in Southeast Asia, behind Indonesia, and also ranks second in B2C e-commerce sales.
Although online shopper penetration is still in single-digits, a strong B2C e-commerce sales growth rate is expected in the coming years, allowing Thailand to maintain its position as the runner up in regional online retail sales.
Mobile and social commerce are the two most important e-commerce market trends in Thailand. Smartphones have become the gateway to internet connectivity, reaching nearly the same penetration rate as internet and leading among devices utilised to go online.
Thailand is the regional leader in share of online shoppers making purchases via mobile.
M-commerce sales are projected to approach a 50 per cent share of total online spending within the next several years, yStats.com’s report reveals.
Furthermore, social media has emerged as the most important platform for online sellers in Thailand. With more than one-half of online shoppers making orders through social networks, thousands of e-commerce sellers maintain accounts on popular social media such as Facebook, Instagram and Line to transact with their customers.
Lazada, an e-commerce retailer and marketplace controlled by Alibaba Group, is the leading online shopping platform in Thailand, attracting three times more visits to its Thai website than the nearest two competitors combined.
Other players attempt to challenge Lazada’s leadership by increasing investments into their e-commerce operations.
The Central Group acquired online clothing retailer Zalora and planned expansion of omnichannel and logistics capabilities for 2017.
Furthermore, South Korea-based 11street is a fast growing market player: since its launch in Thailand December 2016, the company has already registered thousands of sellers and more than a hundred thousand buyers on its platform by early 2017, according to information cited by yStats.com. (KD)
How will oil prices shape the Covid-19 recovery in emerging markets?
– After falling significantly in 2020, oil prices have returned to pre-pandemic levels
– The rise has been driven by OPEC+ production cuts and an improving economic climate
– Higher prices are likely to support a rebound in oil-producing emerging markets
– Further virus outbreaks or increased production would pose challenges to price stability
A combination of continued production cuts and an increase in economic activity has prompted oil prices to return to pre-pandemic levels – a factor that will be crucial to the recovery of major oil-producing countries in the Middle East and Africa.
Brent crude prices rose above $60 a barrel in early February, the first time they had exceeded pre-Covid-19 values. They have since continued to rise, going above $66 a barrel on February 24.
The ongoing increase in oil prices, which have soared by 75% since November and around 26% since the beginning of the year, marks a dramatic change from last year.
Following the closure of many national borders and the implementation of travel-related restrictions to stop the spread of the virus, demand for oil slumped globally.
In the wake of the Saudi-Russia price war in early 2020, Brent crude prices fell from around $60 a barrel in February that year to two-decade lows of $20 a barrel in late April, as supply increased and demand plummeted. The value of WTI crude – the main benchmark for oil in the US – fell to record lows of around $40 a barrel last year on the back of a lack of storage space.
While global demand for oil remains low, one factor credited with reversing the trend is the decision to make significant cuts to oil production, which subsequently tightened global supplies.
How the Rural-Urban Divide Plays Out on Digital Platforms
It is one thing for entrepreneurs, whether urban or rural, to create and operate an online store, as some digital platforms have made it relatively easy to manage an e-store – even by using just a smartphone.
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