Recent research taken by Criteo worldwide e-commerce revenues to reach a high of 6.54 trillion USD in 2022. For Thailand only, e-commerce market is valued at US$3.5 billion and is expected to generate revenue growth rate of 13.2 percent annually, reaching US$5.8 billion in 2022.
Global e-commerce trends
In this digital age, e-commerce is reshaping the global retail market. Thanks to technology innovations, it has opened up a whole new shopping world, providing millions of consumers with access to much greater assortment and value opportunities, satisfying their increasing demand for convenience. Estimated to grow at 20% a year, e-commerce will continue to be the first choice of every customer and constantly transform itself to adapt to the fast-changing retail market.
There is no denying the fact that e-commerce growth is following the customers’ demand. At least in the next five years, consumers’ desire is not only reasonable price and convenience but also instant gratification. According to recent research, by 2026, generation Z customers will expect more instant access and fast turnaround, 24/7. A seamless shopping experience across an increasing range of connected devices, proactive customer service and support, as well as free or very low-cost delivery anytime, anywhere is the main competitive feature that helps business win the heart of customers. Another key point about future e-consumption is that the sharing economy will continue to have a mixed-impact on retail. An emerging trend towards collaborative consumption, such as borrowing, sharing, lending, renting and swapping of goods and services, will become more pronounced in 2026.
In addition, e-commerce will experience a number of significant changes in terms of operation and business. Retail will move from an online–physical distinction to an experience–fulfillment distinction, from omnichannel to omnibrand. Meanwhile, fulfillment is becoming a major battleground, ushering in new models, including click-and-collect. Last but not least, mobile devices are already a key platform for retail and commerce domain. It leads to mobile-first advertising, as well as mobile payments. A strong evidence is in 2019, the global user base for mobile proximity payments grew rapidly to 1.09 billion users. According to Ovum, global mobile Internet advertising revenues increased from $22.64 billion in 2014 to $63.94 billion by 2019, making mobile the fastest-growing Internet advertising category.
Some key technologies that shape the retail worldwide are hyperconnectivity, wearables, Augmented reality (AR) and 3-D printing. While hyperconnectivity will create new dynamics in retail, wearables will become a platform for m-commerce, albeit with limitations. In the future, AR will be a strong driver for online and physical retail and e-commerce can take advantage of 3-D printing with highly personalized products and more reasonable price.
Thailand as an ideal market for e-commerce businesses
Thailand is the second largest economy of Southeast Asia. The recent research of Asean Briefing shows that the country has also approximately 57 million internet users, becoming an ideal growth environment for e-commerce businesses.
Asean Briefing also provides a number of helpful analysis about Thailand market. Over 50% of Thai online shoppers purchase products through social networks, and roughly 70% of them prefer cash on delivery (COD). Yet, alternative payment methods such as e-wallets, mobile banking, internet banking, and credit and debit cards are slowly gaining prominence under the Thai government’s National e-Payment master plan. When it comes to logistic, cost-effective and high-quality logistics services, as well as domestic end-to-end delivery have been implemented to satisfy the customers’ increasing demand.
The situation is making Thailand a favourable environment for e-commerce. Thanks to the Digital Thailand 4.0 program, which was started in 2016, a wave of opportunities have been brought to e-commerce businesses. Currently, 12.1 million Thais shop online and spend an average of US$ 243 per year on e-commerce. The annual online expenditure per person is estimated to reach US$ 382 by 2021, according to research reports. Among five retail categories including food and personal care; furniture and appliances; fashion and beauty; toys, DIY and hobbies; electronics and physical media, the latest has the strongest potential. In 2018, US$ 1,404.2 is the revenue of electronics and physical media in Thailand.
To seize these golden opportunities
Since the below trends of e-commerce, technology will become the key success factor of every enterprise. One of the most technology solutions for e-commerce is Adobe Experience Manager (AEM). AEM helps marketers deliver a seamless, branded and personalized shopping experience across web, mobile and other digital touch points. Additionally, powered by AI from Adobe Sensei, AEM is useful for content management system, digital asset management as well as digital enrollment and forms. Thus, augmenting AEM, in some ways, means e-commerce enterprises own one more competitive benefit to improve customer experience and win the heart of the real king in today’s digital marketplace.
Being an IT solutions provider, CMC Global offers features such as tracking orders easily, promoting the products you would like to promote, and many more features which we will custom design to your needs. From marketing promotions and tools, analytics and reporting to content management systems (CMS), mobile commerce and other functions, CMC Global can provide our clients the best, helping them gain achievements in the increasing competitive e-retail market.