Thailand’s e-commerce market sees 14% growth in revenue in 2024

Speaking at the “DAAT DAY Advolution” event, he highlighted that the market is projected to reach 1.6 trillion baht by 2027, establishing Thailand as the second-largest e-commerce market in the ASEAN region, trailing only Indonesia, despite its fourth-place population ranking.

The impressive growth is largely driven by Thai consumers' increasing affinity for online shopping, coupled with brands' focus on leveraging e-commerce platforms. 

Thanawat noted that promotional incentives are particularly effective, with 54% of consumers citing coupons and discounts, 51.8% valuing free shipping, and 40.4% favouring cash on delivery options as significant factors influencing their purchasing decisions.

Recent survey findings indicate that the most popular shopping channels among Thai consumers in the past month were: Shopee (75%), Lazada (67%), and TikTok (51%). 

This trend mirrors the top three platforms within ASEAN, with Shopee maintaining a strong lead, particularly for fashion and apparel products. Lazada shines with its electrical and electronic product sales, while TikTok excels in beauty and personal care items, Thanawat said.

In addition to platform preferences, the influence of social media personalities is shaping consumer purchasing behaviour, especially within beauty and fashion categories, with notable celebrities such as Bella Ranee Campen, Pimry Pie, and Urassaya Sperbund leading recommendations.

The Thai market is also witnessing the entry of Temu, a product distribution platform from China, which is positioning itself as a cost-effective alternative by sourcing products directly from manufacturers, he said.

This competitive edge has encouraged other platforms like Shopee and Lazada to adapt their strategies to include direct contact with factories and the introduction of unbranded products at competitive prices.

Looking ahead, 2025 is poised to be a pivotal year for affiliate marketing, content, and commerce as brands increasingly engage in affinity marketing to boost sales, he said. This trend, evident globally, is gaining traction in Thailand, particularly with convenience store models like "7-Eleven" utilising this channel for measurable sales improvements.

"Key takeaways from these developments include the importance of value and cost-effectiveness, which is prompting businesses to establish direct-to-consumer channels amidst rising marketplace fees. Furthermore, leveraging e-commerce data will empower brands to make informed decisions and enhance their competitive edge. Finally, the demand for rapid delivery is growing, with Thailand's quick commerce market projected to grow by 20-30% annually, highlighting the need for businesses to adapt to changing consumer expectations," Thanawat said.