Thailand
Thailand: Virus a plus for online sellers
The ongoing coronavirus outbreak will increase online shopping among Thai customers for fear of contracting the illness in public, while the disruption of supplies from China continues to take a toll on social commerce because of a lack of inventory, says Facebook Thailand.
Meanwhile, a new study by Facebook and US-based consultancy Bain & Company shows that Thailand’s online spending could reach US$21.4 billion in 2025, a jump of almost five times from 2018.
“We are facing an uncertain situation from the virus outbreak,” said John Wagner, country director of Facebook Thailand, the local operating unit of the social media giant. “This will increase people’s behaviour to shop online for safety reasons, as they would avoid crowded areas.”
The Sars outbreak of 2002-03 pushed Chinese people towards online shopping for the same reasons, he said.
According to Mr Wagner, the outbreak is causing disruption to the Chinese supply chain and having an adverse impact on social commerce, or online merchants selling products via social media.
Large brands could also be hit by economic uncertainty, he said, and their ad spending is unlikely to be significant this year.
Thailand is the second-largest online shopping market in Asean, trailing only Indonesia.
Thailand’s online spending totalled $4.4 billion in 2018 and is expected to reach $21.4 billion in 2025, said Derek Keswakaroon, a Bain partner.
He cited the Bain-Facebook study, titled “Riding the Digital Wave: Southeast Asia’s Discovery Generation”. The survey included 1,954 respondents in Thailand.
In 2018, Thailand’s digital consumer population — defined as those aged 15 and older with at least one online shopping experience — was 34 million or 60% of the country’s population, up from 21 million in 2017.
“The emerging middle class is the next wave of online spenders,” Mr Derek said.
Some 55% of Thais learn about new products via platforms like Facebook and Instagram, so brands need to make sure their targeted customers see their products on these platforms.
Mr Derek said brand loyalty plays a significant role in the Thai market.
The study found that buyers are likely to spend three times more on products they’re loyal to, he said.
Even so, Thais are open to new brands, Mr Wagner said, as 60% of the respondents said they had tried an online store despite never having heard of the brand.
Source: https://www.bangkokpost.com/business/1866424/virus-a-plus-for-online-sellers