The Asia Pacific (APAC) region, which includes Southeast Asia and Oceania, is justifiably attracting the attention of savvy e-commerce brands from around the globe. An approximate growth rate of 20% each year, strong local demand for international brands and low fees from incumbent marketplaces all combine to create a fertile soil for ambitious retailers.
Of all these booming e-commerce markets though, Thailand in particular holds great promise.
Sustained growth for online retail in Thailand
COVID-19, and the stop-start lockdowns that were implemented to contain it, have fuelled significant growth For Thailand. Since 2020, 30% of all digital service users were newcomers. But the country’s impressive growth predates the pandemic. In 2018 and 2019, it recorded e-commerce market growth of 48.7% and 26.8% respectively.
Reassuringly for brands yet to establish a foothold in Thailand, the market seems to be a long way off saturation. Currently valued at US$10B, experts predict that annual e-commerce revenue will have increased another 50% by 2025.
Thailand: APAC’s next digital behemoth?
So, while the pandemic may have accelerated e-commerce uptake to a certain extent, what else is driving this sustained growth?
Thailand’s Ministry of Foreign Affairs is keen to attribute at least some of the success to government policy. In a press release published on Cision News Wire, it points to an ‘enabling ecosystem’ for digital start-ups which has been nurtured through its Digital Economy Development Plan since 2016.
In the same statement, ample network coverage supported by investment from Huawei, and ‘buoyant’ e-payment systems are also identified as factors that are helping Thailand to establish itself as a ‘cutting-edge economic powerhouse’.
Grow your e-commerce business in Thailand with Asendia
If you’re keen to learn more about the e-commerce market in Thailand, Asendia can help. We are experts in global e-commerce logistics, have strong partnerships with the region’s leading last mile delivery companies and a range of products to meet the needs of you and your customers.
Our e-book, Thailand, your perfect e-commerce destination, contains more insights and guidance on the local economy, infrastructure and consumers. Download it free today.