E-commerce set to take 10 per cent of Thai retail sales
Analysts are predicting e-commerce will account for 10 per cent of Thai retail sales within five years, according to a report in the Bangkok Post.
The observations have been sparked by the imminent entry of JD Central – a partnership between Chinese online services giant JD and local firm Central Group.
Head of customer strategy for JD Central Jirasak Chirathivat said that the Thai retail business will be stimulated by higher competition, big data, AI and voice commands. “Price is not the only factor for consumers; experience and express delivery are also key motivations,” he said.
“We are in the process of investing in a second logistics centre that serves countrywide delivery. We aim to achieve the standards seen in China, where JD.com delivers before 11am in the morning when users place their orders before 11pm the night before.”
JD Central plans to offer 1 million products online, working with Tencent Thailand and Pomelo, each of which list JD as a shareholder.
Pomelo’s CEO David Jou said e-commerce in Thailand still has room to grow, as it represents only 3–5 per cent of the total retail market compared with 30–35 per cent in China and 15 per cent in India.