Open 4 emerging businesses Benefit from online retail (E-commerce)

Open 4 rising star businesses Benefit from the expansion of online retail business

on August 30, 2021 by the financial group estimated that Online retail market or E-commerce in Thailand after COVID-19 will expand by an average of 20% per year over the next 5 years, increasing from 300 billion baht at present to 750 billion baht in 2025, or 16% of the total retail market Only in the past 2020, Thai e-commerce has expanded by 80%,

reflecting the shift in consumer purchasing behavior to more online channels. from travel restrictions from lockdown measures Electronic products and food and health categories tend to expand well. while spending on hotel bookings and travel contracted sharply.

In addition, it also views that the expansion of online retail business will also encourage related business sectors to benefit as well:

(1) Warehouse business The continued growth of online retail has resulted in the demand for space in warehouse expanding Although the impact of COVID-19 and expansion of warehouse space to accommodate future needs This will bring the Thai warehouse occupancy rate to decline slightly to 86% in 2020. Going forward,

the growth of online retailers will become a key driver for the warehouse business. Especially modern warehouses with a full service model. distribution center including cold storage This will be an important part of the supply chain for the agriculture and food and pharmaceutical industries. The expansion of the warehousing business and its

location in the country can also enhance and build on Thailand’s expansion into a regional warehouse hub.

(2) Packaging The packaging business is one of those businesses that are expanding in tandem with the growth of online retail. Bank of America data shows that packaging used in online retail accounts for 12% of the total. North America Packaging Market and

is estimated to increase to 20% in the next few years. Thailand is currently the largest packaging exporter in ASEAN.

Coupled with the expansion of e-commerce in Thailand, the opportunity to expand the packaging business is likely to continue to grow in the next 4-5 years. However, almost 80% of all packaging produced in Thailand is from plastic. This could hinder the next phase of the green packaging trend. Therefore, it could be an opportunity and a avenue

for packaging businesses made from more eco-friendly materials or recycled plastics that still have a small market share. live

(3) Logistics Transportation is the heart of online retail development. Developing transportation infrastructure and growing number of logistics providers are supporting the expansion of the online retail business. This will continue to bring good results back

to the transport business directly. Especially last-mile delivery business due to the expansion of the consumer base across the country.

Over the past several years, the demand for freight and parcels in Thailand has increased dramatically, with between 2014-2019 the number of parcel shipments in Thailand grew at an average of 92% per year, higher than the global average of just 4.2. % and if we consider the number of parcel shipments per population in 2019, it

was found that Thailand was 8.3 per person. This is still less than countries with higher access to online retail, such as China (42.6), South Korea (48.2), etc.

(4) Online advertising: In the past 5 years, online advertising media in Thailand has grown by 21% per year until 2020, accounting for 23% of total advertising media value, up from 7% in 2015. More than 50% of online ads in Thailand are advertised on Facebook and Youtube, reflecting a shift in consumer reach to social media. And in line

with Thailand’s share of online retail through social networks reaching a high level of nearly 40% in the coming period,

while there are some businesses that will inevitably be affected by the change. such as a retail business that relies on a storefront Real estate business related to the sale or lease of commercial space or a large restaurant that has been taken away from the food delivery service (Food Delivery)

However, the strategy of adapting to the new normal (New Normal) will be the key for the business to survive. And it is an opportunity to create new business growth.