The last month of 2021, of course, is a matter of online spending. E-commerce and social commerce shopping have become a sales channel that Thai people have turned to pay more attention and open-minded to use partly because they want to reduce travel from the epidemic of Covid-19 Another part comes from the behavior that has changed, namely, the desire to reduce the time spent looking for products. Become more searching through fingertips.
thumbsup was honored to interview Mr. Thanawat Malabuppha, Chief Executive Officer of Pricesa Company Limited and President of Thai E-commerce Association Come join the online discussion about online spending. shopper behavior including what to expect in the e-commerce industry in 2022
Overview of Digital Thailand in 2021, I believe that many of you should see the numbers in the same direction that Thai people are still spending more time on the internet. From the data, it was found that 75% of Thai Internet users I admit that I spend an average of 9 hours a day on the internet. This means that there are still more people using the Internet, probably about 10-11 hours a day.
The main activities that Thai people use on the Internet, whether it is entertainment through social networks.“Shopping” Be in one of the main activities that Thai people spend a lot of time on it from the past 2-3 years “Shopping” will be ranked in the 5th place, but from the latest data this year, it has been ranked 3rd
when looking at the word “Shopping” As a result, for Thai people, it is E-commerce shopping and making informed purchasing decisions
What does it mean to find information to help you make a purchase decision? 9 out of 10 Thais before deciding to buy He did the research first, and 8 out of 10 people choose to go online. Online has become a way to find information to help make purchasing decisions nowadays.
From finding this information brings influence in purchasing decisions. Whether they shop offline, through a storefront or through an online purchase, this behavior, I call it. OMNI Channel Comparison Shopper Omnichannel is using both online channels. both offline channels to compare both products compare both prices Before you decide to buy Therefore, this trend will be mainstream Today, when we talk about retail, we are not talking only about e-commerce, but about the digital influence that it has influencing purchasing decisions.
adjustment of the retail business and platform competition
Overview of the Thai e-commerce market in 2021, according to Google and Temasek, who made digital market data, it was found that the e-commerce market value is approximately 400 billion baht, an increase from last year and this year 2021 will grow approximately 75% to touch about 700 billion baht, compared to the previous year in 2019-2020, when Covid had a serious impact on business
That year, Thai e-commerce grew by 140%, making it predicted that the market place corner was still the dominant platform. Maybe almost half of it. Three major players like Shopee have seen a year of rapid growth. Last year was a crossover year when sales surpassed Lazada and this year the gap has widened. But at the same time, Lazada is trying to aggressively expand its businesses. While shopping, there is a service charge on the seller’s side. Many sellers are pushing their weight towards Lazada. We still have to see each other.
The side of JD Central saw that there was more movement. But from the point of view, this still seems to be far from players on the side of Lazada and Shopee, but there is another point. What is worth watching is social commerce.
Social Commerce is a hot trend, e-commerce competitors
It is estimated that social commerce may account for about 40 percent of the 700 billion baht worth of e-commerce this year. Social commerce shopping behavior can be seen from Digital User that Thai people spend a lot of time on social media platforms.
Today you will see social media platforms There is a tendency to expand to become a commerce platform more and more, such as TikTok, which this year has announced more commerce-related features.
According to Indonesia, Tiktok has already opened the app to become a commerce platform. It means that when people want to buy products, when finished watching, they can click to buy. You can end up in your own form.
It is predicted that commerce platform will become a trend of next year. The trend of social commerce should be the trend of buying all things in Social Media Platform.
Facebook and its penetration into the commerce market
The direction of commerce is the main direction that Facebook has always been pushing. But it’s quite slow as well. because it pushes the overall picture to a variety of platforms The latest move will see that Facebook Group has started to include features in the matter of commerce as well. He may try to adjust the Facebook Group to become a community of people who can complete trading in the community itself.
Almost not social media But it’s a new direction to earn money.
I think it’s not a change of direction. But it adds features to make the shopping experience even more seamless. It is a matter of social connection, the matter of linking between content, which is Content as the lead, it is Social Content based.
On the commerce side, there isn’t a feature that makes trading seamless. Usually, when you want to buy a product, sometimes in many cases you have to chat, or sometimes you have to add LINE to talk or you have to go out to buy on the website. Press to go out to buy at the market place. which it has friction which the friction force there It makes a shopper’s corner. will be able to escape trading opportunities
What social media platforms will try to do is reduce friction That way, the lower it is, the more it will benefit. Marketers or sellers’ corners who advertise on social media platforms, the more effective the ads are, the better the sales, making it more likely that marketers will shift their advertising budget to invest in social media platforms a lot. climb
I still believe that the main revenue model of social media platforms is still “advertising,” but how to make the experience better and more efficient than it is today.
Commerce will be one of the spending channels in the future.
The market value of e-commerce this year is 700 billion. I expect it to take about 5-10 percent of the total retail value of the country. It can be seen that the proportion here is still very small compared to the total retail value of the country.
Then we compare it to a market like China. The world’s largest e-commerce market accounts for about 25% to 30% compared to international retailers, giving a glimpse of how e-commerce is eating into people’s shopping habits. Not even half yet. The trend that comes to influence is not only the process of making a purchase decision.
Consumers’ buying behaviors range from the process of selecting the products they want to buy. and the purchase decision It came into effect from the beginning of the process. Finding inspiration from finding information to support the purchase decision comparison and then decide to buy Right now, the most influential trend is in the inspiration phase. And then the decision
In purchasing, most people are still with offline channels. but the trend is growing higher Therefore, I still believe that selling products through the store will not disappear. But it turns out that they will even support each other.
Businesses that can design a buying experience to support purchasing decisions through online channels various digital platforms including the storefront They are more likely to win the hearts of customers than focusing on just one channel. It’s all about Omnichannel.
Next year’s analysis of 3 platforms
In the corner of the players, the 3 main marketplaces who compete fiercely are Lazada and Shopee I believe that next year these two will continue to compete fiercely. But there is still no one who has taken over the market and has overtaken and jumped. Still believe that they will still eat the same proportions.
The reason is because Lazada sees the Thai market. It is one of the most important markets. I have to say that Lazada lost the opportunity in the big market. One market in this region is Indonesia It’s in Dominicia. Lazada is the one that has been abandoned by Shopee, so Lazada will try not to lose the Thai market. It is considered one of the most important markets.
2nd place, Shopee itself, I have to admit that I got an opportunity and it’s popular with both buyers and sellers in the Thai market. But I have to admit that shopping burns a lot of money. big loss began to try to reduce losses We have to admit that shopping through Marketplace is not the only channel popular with Thai people. There are also purchases through social commerce channels and there is one channel which is Quick commerce.
Quick Commerce is the purchase of products through various On demand platforms, such as Grab, LINEMAN, FoodPanda, which nowadays has already opened its own marketplace. Invite various stores that are stores like a storefront to put the products in. and then be able to trade products through their own platform The highlight is that the product is delivered quickly.
I still believe that these 3 channels trend is still a channel to watch and become the main channel of e-commerce in Thailand next year.
Hot product group that still dominates the hearts of shoppers
Overview of popular product groups during this covid It is a home and living product. Household items, furniture, home decorations. It’s about living, living at home, at work, making the house a work place. and health-related products continued to grow at a high rate as well.
Affiliate Marketing, a trend to promote products through hot influencers
Affiliate Marketing is a platform that Priza launched last year. and growing very high Due to the very high popularity from people who are Content creators, especially during the covid period, the content creator groups have grown a lot. And one revenue stream that content creators can rely on is Affiliate Markteing if their content can influence a buying decision. Whether it is a promotion update Update product stories and let people decide to buy These content are very useful for buyers.
And affiliate marketing is like filling it in. It helps people who are content creators generate additional income. People who sell stuff from that content, he wants to sponsor. Share the revenue and share the profits with those creator content as well. Priceza Affiliate is one platform to add here. Work with a group of people who are ecommerce platforms. Many leading e-commerce retailers are growing very high for Priceza Affiliate.
How Affiliate Marketing Works
The way this is done is that a group of people who are sellers who want to sell products He himself can bring products to work with the Priceza Affiliate system, where Priceza Affiliate will list each product. That people who want to sell work with people who are Content creators.
Content creator may be like a YouTuber. It could be someone who is an influencer on tiktok on Facebook, Instagram or whether it’s someone who is a blogger. have own website We are going to work for this group of people. let him pick up the goods pick up campaigns to help publicize And when trading takes place, Priceza Affiliate is a platform to measure the effectiveness of this market. and then allocate revenue to people who are Content creators
Best selling products on Priceza Affiliate
The number 1 most popular product group is Gadget products, Smart Phones, and all high-tech devices. The group of electrical appliances, ranked 3rd, is a group about Home & Living. In fact, it’s similar to Same with shopping behavior It is someone who likes to buy anything in the e-commerce market. Thai people like to buy something, it will be popular in the Affiliate group as well because Affiliate people tend to choose products from groups that consumers like and they want to buy during this period.
Amazing things to happen in 2022
The ecommerce market has proven itself. It’s no longer an alternative. It is an important channel whether it is retail. Almost every brand opens its own e-commerce channel. Next year, he will also invest more than the present.
The second is the brand. Nowadays, we also create our own sales channels. This makes the complexity of the sales channel even more complicated. I still believe that the digital market, digital advertising money will definitely grow again. This year is probably 10-11 hours.
and the purpose of digital advertising spending that must be focused on conversion or more sales This affects the market of influencer Marketing. Influencer Marketing will focus on measuring results to the subject of more sales. So it’s a link to come to affiliate marketing, making brands when they decide to hire, they want to measure results and pay according to their performance.
I think next year will be an important year for affiliate marketing in Thailand. that is likely to have a higher growth rate
In the end, I think that the e-commerce market. It’s definitely a growing market. Because there is a constant conflict between platforms. Not only the market place led by China, but also the platform of America, whether it’s Google Search, social media, there will definitely be adding more commerce-related features in the next year. I think that the sales channel will be more diversified. From the seller’s point of view, it’s both an opportunity and a challenge. It’s up to adjust and learn to adapt and use different channels.
Watch the interview clip
