Retail e-Commerce, 2012: THB73 Billion Turnover, Opportunities Abound (Business Brief No. 3263 Full Ed.)

KResearch forecasts that e-commerce business market turnover in 2012 may reach THB73 billion amid continuing growth over 2011. This marketing channel is expected to garner a total market share of 5.0 percent out of total retail turnover in excess of THB1.48 trillion. Small retailers may remain the key contributors to e-commerce expansion, though, even as department stores, discount stores and supermarkets are beginning to rely on e-commerce to boost their revenues. In addition, online marketing activities such as promotional campaigns and infomercials have gained more notice for these retailers in order to be more accessible to target customers, e.g., teenagers and career people.

IT advancements, a higher number of the internet users, plus the proliferation of smartphones and tablets in Thailand, as well as increasing consumer confidence toward e-commerce, are among the key drivers for thriving e-commerce trade, as evidenced by the rising market turnover. This is regarded as an interesting trade channel for both large operators and SMEs alike.

Nonetheless, several hindrances to e-commerce include the quality of products and services sold online. Consumers may be reluctant to buy items offered online through ‘virtual' stores as they are unsure of the quality they will receive. Lengthy delivery times are also proving to be another downside. The operating systems used to control e-commerce websites and the download speed of information and product specifications are also important to consumer buying decisions. They may at times become frustrated with system glitches, thus resulting in potential losses of sales.

Finally, services and customer care are important, too. Should retailers take these factors seriously into consideration and be prepared for the potential downsides, e-commerce will remain another lucrative trade channel for them.