What To Know
- Market Value Reaches New Heights Thailand’s e-commerce market recorded a remarkable surge in 2024, expanding by 14% to reach a total value of 1.
- , officially registered in late 2023, has already generated over 12 billion baht in revenue under the leadership of Chawanrath Poochaiwatnanon, particularly excelling in the fashion retail space.
Bangkok Business News: Market Value Reaches New Heights Thailand’s e-commerce market recorded a remarkable surge in 2024, expanding by 14% to reach a total value of 1.1 trillion baht, up from 980 billion baht in 2023, according to Priceza.com. The sector’s rapid growth cements Thailand’s position as ASEAN’s second-largest digital retail economy, trailing only Indonesia. Projections indicate the market could soar to 1.6 trillion baht by 2027, fuelled by changing consumer habits and the dominance of online-first retail models. This Bangkok Business News report highlights the platforms, trends, and challenges shaping the future of this booming sector.
Thailand E-Commerce Growth Market Crosses Past One Trillion Baht
Image Credit: AI-Generated
Shopee Leads but TikTok Gains Ground Fast
Shopee retained its crown as Thailand’s most-used online shopping platform in 2024 with a 75% user share, followed by Lazada at 67%. However, TikTok’s entry into the scene has disrupted the status quo. Within a short time, TikTok captured 51% of consumer engagement through its potent mix of short-form video entertainment and seamless in-app shopping capabilities. Industry analysts predict TikTok could overtake its competitors within the next one to two years. TikTok Shop (Thailand) Co., Ltd., officially registered in late 2023, has already generated over 12 billion baht in revenue under the leadership of Chawanrath Poochaiwatnanon, particularly excelling in the fashion retail space.
Shift Towards Affiliate and Influencer Marketing
Looking ahead to 2025, a strategic transformation is on the horizon. With rising seller fees on major platforms, more brands are expected to move away from pure platform dependency toward affiliate marketing and influencer partnerships. This approach promises more cost-effective customer acquisition, measurable returns, and direct audience engagement. TikTok’s tightly integrated content-commerce ecosystem enables instant purchases within the app, driving convenience and impulse buying. However, this has sparked criticism over limited visibility for external links, with some suggesting it could restrict market diversity.
Opportunities and Risks for Smaller Sellers
For small and medium-sized enterprises, TikTok presents a double-edged sword. While it offers access to vast consumer traffic, its strict rules, rising hidden costs, and competitive marketplace create operational pressure. Logistics remain another key challenge. In mid-2024, TikTok partnered with Thailand Post to streamline deliveries, but lingering issues around performance consistency and data transparency continue to be barriers for sellers.
The Road Ahead for Thailand’s Digital Retail
As Thailand’s e-commerce ecosystem grows more competitive, the interplay between innovation, consumer convenience, and fair market regulation will determine the industry’s next chapter. The continued evolution of platforms, coupled with shifting brand strategies, will decide whether the projected 1.6 trillion-baht target for 2027 can be achieved. The future promises significant opportunities, but businesses must remain agile to navigate rising operational costs, platform dominance, and fast-changing consumer preferences.
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