Local retailers under pressure as Thai shoppers flock to major online players | WARC | The Feed
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Local retailers under pressure as Thai shoppers flock to major online players
Shopper research & insight Direct to consumer (D2C) E-commerce & mobile retail
Online shopping continues its rapid uptake in Thailand as uncertainties over COVID-19 cement current consumer consumption patterns. With e-commerce giants JD, Shopee and Lazada – collectively referred to as JSL – dominating the segment, community retailers are expected to take a hit.
Why it matters
- The government’s stimulus schemes have encouraged people to jump into online shopping while e-commerce trio JSL offers plenty of promotions and subsidies to attract shoppers across a wide range of product categories.
- JSL will dominate spending in major shopping festival events (such as 11:11 and 12:12). The spending shift will have a crucial impact on local vendors as shoppers will opt to shop online for a greater choice of products at lower prices.
- In 2021, many manufacturers and brands are expected to pivot towards direct-to-customer strategies, bypassing retailers and opening their own shops on e-marketplaces.
“Most online shoppers are upcountry, they shop online more than people in cities and younger generations are becoming accustomed to shopping online primarily. This is the time to open shops on JSL and social media platforms or build websites” – Pawoot Pongvitayapanu, chief executive of e-commerce platform Tarad.com.
Sourced from Bangkok Post
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