THAILAND — The Power of Creative Ecommerce
As you may know, Thailand is Southeast Asia’s second-largest economy, as well as the region’s second-largest business-to-consumer (B2C) e-commerce market. Thailand’s government announced the “Thailand 4.0” economic model to reorient and improve the country’s economy away from manufacturing and toward information and services. Thailand aspires to be a prominent digital hub in Southeast Asia within the next ten years. One of the major tenets of this vision is for digital technology to drive the country’s economic growth, strengthen the industrial sector, and improve the lives of its residents. What is more, the Ministry of Commerce established a National E-Commerce Strategy (2017–2022) in 2016 as a blueprint for Thailand’s e-commerce development.
Both the private and governmental sectors are encouraged by the government to make e-commerce available to residents. Pracharat Internet, a project aimed at villages with limited access to telecommunications and Internet services, is one of the government’s efforts. People in these locations will be supplied with Internet speeds of 30 Mbps/10 Mbps as part of the initiative, allowing them to use the Internet for healthcare, education, and business prospects. Other parts of the government’s Thailand 4.0 strategy include electronic payments, infrastructure, and digital talent. The National E-Payment Master Plan was launched by the Ministry of Finance to promote better financial knowledge and inclusion in order to build a suitable environment for a digital economy.
What is even more intriguing, is that Thailand’s size and potential for e-commerce have made it an attractive market for international investment. Alibaba and JD.com, two Chinese Internet behemoths, have invested in Thailand in the previous two years. Alibaba invested AUD$5.3 billion in Lazada in 2018, and injected USD$300 million into the first stage of the Eastern Economic Corridor (EEC), while JD.com invested USD$449 million in a joint venture with Central Group, Thailand’s largest retail conglomerate. In comparison to the payment, logistics, fintech, and food and beverage industries, e-commerce is the top segment that has attracted the most foreign investment.
As a result of the increased interest from foreign investors in Thailand’s e-commerce sector, local businesses have been pushed to improve their competitiveness and more SMEs in Thailand have been encouraged to innovate in areas such as online commerce, fintech, and artificial intelligence (AI). More cooperative partnerships between offline wholesale firms and internet enterprises have developed as a result of the investment.
Creative e-commerce is defined as a notion that addresses the long-term success of an e-commerce experience rather than just the interim.
The online shopper in Thailand
Online shopper characteristics
▪ E-commerce users are expected to grow by 19% to 43 million users in Thailand by 2025
▪ 38% of online shoppers have a high household income
Online behavior
▪ 52% of the population shops online
▪ The top 3 interests of online shoppers are Food & Drinks, Shoes, and Clothing
Online shopping
▪ 50% of online shoppers in research online when planning a major purchase
▪ Clothing and Shoes are the main categories for online shopping
Policies and agreements between Taiwan and Thailand
Regarding the agreements between Taiwan and Thailand in business, < Agreement between the Taipei Economic and Trade Office in Thailand and the Thailand Trade and Economic Office in Taipei for the promotion and protection of investments > signed in 1996 is one milestone for governments to increase the trade amount.
After three years, <Agreement between the Taipei Economic and Trade Office in Thailand and the Thailand Trade and Economic Office in Taipei concerning the entry into operation of the provisions on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income> became effective in 1999. The agreement may also encourage traders from both countries to invest in each other.
Lastly, ASEAN also plays an important role in business with Taiwan and Thailand. Thailand is also a member of ASEAN. With the such qualifications, Taiwanese companies also anticipate expanding their business to other countries in ASEAN through Thailand. Economic researchers also found that it would be a benefit for Taiwanese traders.
Case Study: Siam Piwat partners collaborations with PChome
Siam Piwat Retail Holding Company Limited, a retail innovator subsidiary under the Siam Piwat Group, continuously spreads its wings and makes a foray into international markets. To kick off 2022, they announced an agreement with Taiwan’s largest e-commerce group, PChome, to double the amount of spending for the highest-spending customer base. It will give a golden opportunity to debut three Thailand SME brands on its e-commerce platform (PChome). As a result, it’s a perfect match-making deal for their overseas presence in the forms of franchise, e-commerce, and dealership while building international recognition for Thai brands.
The three SME brands are ICONCRAFT, Absolute Siam, and Ecotopia. ICONCRAFT, a subsidiary of the Siam Piwat Group, accommodates more than 800 craftsmen and small entrepreneurs nationwide to showcase Thai art from a new perspective. It offers a stunning array of products ranging from jewelry, souvenirs, home décor, Thai design pieces and artworks, and lifestyle products to daily life items, fragrances, food, and snacks.
Absolute Siam is a trendsetting store; it offers bold fashion by housing over 60 noteworthy Thai designers, which offers fashion collections, items, and souvenirs to daily lives. On the other hand, “Ecotopia” is an eco-conscious community of like-minded people who believe ‘Together, We Co-Create a Better World’. Moreover, Siam Piwat has supported such Thai brands as Graph and Fill in the Bag, enabling them to make an entrance into international markets. Shortly after the debut, other brands such as Anona, Awa Decor, Thai Butterfly, and Chui have become top brands on the PChome platform.
According to Mr. Hung-Tze Jan, Chairman of PChome, ever since the introduction of PChome Thai, Thailand e-commerce has helped Taiwanese brands and SMEs to develop a new market. However, starting this year, it will become two-way cross-border e-commerce, by selling Thai products in Taiwan. This development has started a new chapter in the development of cross-border e-commerce in Greater East Asia, which will lead to abundant growth momentum.
Moreover, Ms. Usara Yongpiyakul, CEO of Siam Piwat Co., Ltd., this partnership is in line with Siam Piwat’s goal to drive business growth in all dimensions in 2022. The retail group has planned to accelerate growth and focus on expansion to overseas markets with strong economic growth and purchasing power. For over 10 years, Siam Piwat has been working with various government agencies to bring Thailand’s products worldwide. We believe that this is just the beginning and hope to see various traditional brands with high-quality products globally.
