Stacks Image 90

Nyheter fra Thailand - levert av Thailand Business News

My RSS Feed

  • Thailand ready to host ASEAN Summit from Nov 2 – 4

    The summit will be attended by many leaders from 10 ASEAN member countries and those from China, South Korea, Japan, the United States, Australia, New Zealand, India and the United Nations.

    The post Thailand ready to host ASEAN Summit from Nov 2 – 4 appeared first on Thailand Business News.

    The Director-General of the Department of Information and spokesperson of the Ministry of Foreign Affairs (MFA) disclosed that Thailand is ready to host the 35th ASEAN Summit and related meetings from November 2 – 4, 2019.

    Ms. Busadee Santipitaks, Director-General of the Department of Information and spokesperson of the Ministry of Foreign Affairs, said Thailand will host the 35th ASEAN Summit and related meetings from November 2 – 4, 2019, in Bangkok.

    It will be attended by many leaders from 10 ASEAN member countries and those from China, South Korea, Japan, the United States, Australia, New Zealand, India and the United Nations.

    Two-day holiday for all government offices

    The cabinet has also approved a two-day holiday for all government offices in Bangkok and Nonthaburi province during the Asean summit and other meetings to be held at Impact Muang Thong Thani early next month.

    Deputy government spokeswoman Traisulee Traisoranakul said on Tuesday the cabinet had endorsed a Foreign Ministry proposal for Nov 4 and 5 to be extra holidays for state offices in the capital and Nonthaburi as Muang Thong Thani will host the summit of Southeast Asian Nation leaders and other related meetings.

    The two-day holiday, which gives government workers a four-day weekend, would ease traffic congestion  and make it easier for Asean leaders and other participants to move to and from the venue, she said.

    The decision applies only to government offices. The cabinet left it to state enterprises, banks, private businesses and the Bank of Thailand to make their own decisions on whether to follow suit.

    At the meeting, the leaders will discuss cooperation, under Thailand’s chairmanship, and building stability in a sustainable manner, border management, cyber security, transnational crimes, disasters, sustainable development, economic promotion, the 4th industrial revolution, preparation for the new generation, digital transformation, the use of technology and digital innovation, promotion of education and care for all groups of people.

    It is also expected that ASEAN will issue a joint statement regarding the response to climate change.

    The post Thailand ready to host ASEAN Summit from Nov 2 – 4 appeared first on Thailand Business News.

    15 October 2019
    Asean
    https://www.thailand-business-news.com/?p=76288
  • Sufficiency Economy, King Bhumibol Adulyadej’s most enduring legacy

    In a sufficient economy, generation of material wealth should rely more on environmentally healthy, self-sufficient communities in which basic human needs are met through Iocal natural production methods.

    The post Sufficiency Economy, King Bhumibol Adulyadej’s most enduring legacy appeared first on Thailand Business News.

    Decades before Sustainable Development became the buzzword of UN agencies, Thailand had already experienced it with the Sufficiency Economics theory, perhaps the most everlasting legacy of King Bhumibol Adulyadej.

    As a result, Thailand came to understand, and to apply the Sufficiency Economy Philosophy, or SEP, which has the principles of self-sufficiency, moderation, and reasonableness at its core.

    Speaking at the Fifth Bloomberg ASEAN Business Summit, held in Bangkok on 21 June 2019, the Prime Minister indicated that although the number of Thais in poverty has steadily declined from 57.07 percent of the total population in 1990 to 7.87 percent in 2017, Thailand is still confronted with the problem of economic and social inequality.

    It is also facing environmental degradation, which is why the country gives importance to sustainable and holistic development.

    He said that the financial crisis in 1997 was another important turning point that made Thailand realize that dependence on the global economy, without nurturing inner strength and immunity to external shocks, will render Thailand vulnerable.

    In 1997 when Thailand suffered its worst economic crisis, King Bhumibol Adulyadej came up with his own solution or theory based on the experience of over 40 years in helping his people to adopt a sustainable development model.

    A development model inspired by Buddhist values

    The philosophy of sufficiency economy stresses Buddhist values and the middle path as an overriding principle for appropriate conduct regarding consumption and production.

    In a sufficient economy, generation of material wealth is not the ultimate aim. Instead the final goal is to create environmentally healthy, self-sufficient communities in which basic human needs are met through Iocal natural production methods.

    Sufficiency economy, taking form through the contributions of various institutions and academics, has seen a wide range of interpretations of its aim and origins, as well as different views about its application.

    Today there is widespread agreement that sufficiency economy is meant as a development alternative based on an attitude towards life that encompasses three components: moderation, reasonableness, and self-immunity.

    Reducing inequality through Sufficiency Economy

    Because His Majesty the King Bhumibol was aware of how high economic growth can lead to imbalances of development in various areas, he has devoted himself to reducing the imbalances through the concept of Sufficiency Economy and royally initiated projects.

    From 1946 to 2009, the population in Thailand rose from 17 million to 63 million, representing an increase of threefold. During the 63-year period, Thailand’s GDP also increased 32 times and per capita income rose tenfold.

    In terms of poverty, 24 million Thais were classified below the poverty line in 1986. In 2007, the number dropped to five million, accounting for 9 percent of the population.

    His Majesty has also initiated more than 4,000 projects classified into various categories, such as agriculture, water resources, the environment, occupational promotion, public health, public welfare, and communications. Six Royal Development Study Centers have also been established to conduct research and development activities to ease problems faced by local residents in each region of the country.

    The post Sufficiency Economy, King Bhumibol Adulyadej’s most enduring legacy appeared first on Thailand Business News.

    14 October 2019
    Opinion
    https://www.thailand-business-news.com/?p=76277
  • IMF and SCB lower Thai growth forecast under 3%

    IMF and SCB have joined other banks and organisations to predict Thai economic growth under 3% for 2019.

    The post IMF and SCB lower Thai growth forecast under 3% appeared first on Thailand Business News.

    Siam Commercial Bank’s (SCB) Economics Intelligence Center (EIC) has adjusted its Thailand 2019 economic growth projection from 3 percent down to 2.8 percent.

    The center has reported that domestic consumption is showing signs of a slowdown, especially in the private sector, as seen from lower sales of housing and motor vehicles, while financial institutions have become more stringent when offering loans, due to higher household debt.

    Siam Commercial Bank’s (SCB) Economics Intelligence Center (EIC) estimates the export sector this year will shrink by 2.5 percent, while the tourism sector will generate less income due to lower spending by tourists because of the higher value of the Thai Baht, despite tourist numbers reaching the 40.1 million persons goal.

     The overall Thai economy however remains robust following the government’s investments in large projects and the Eastern Economic Corridor.

    IMF sees Thai growth rate at 2.9% in 2019

    Thailand’s economic growth rate could slow to 2.9% this year and be 3.0% in 2020 according to IMF’s latest report.

    Risks to the growth outlook are tilted to the downside stemming from the impact of the global economic slowdown, current trade tensions and weak domestic demand, the IMF said.

    Since December 2018, the baht has appreciated by about 5.5 percent against the U.S. dollar, making it one of the best performers in the region.

    The level of reserves increased by nearly US$11 billion by end-June 2019 to US$250.3 billion, well above Fund adequacy metrics. Since May 2019, capital inflows have further accelerated, contributing to a sharper appreciation of the baht.

    IMF Thailand report

    Many Directors considered that Thailand’s external position remains substantially stronger than warranted by medium-term fundamentals and desirable policies.

    A number of other Directors called for a more cautious interpretation of the external balance assessment citing Thailand’s pecific issues as contributing factors.

    The post IMF and SCB lower Thai growth forecast under 3% appeared first on Thailand Business News.

    12 October 2019
    Economics
    https://www.thailand-business-news.com/?p=76262
  • The TikTok Strategy: Using AI Platforms to Take Over the World

    Hugely popular with teenagers and millennials, TikTok – known as DouYin in China – is a social media application used for creating and sharing short videos. Lasting 15 seconds or less, the typical clip features fun music, a skit, lip-sync, dance or light-hearted humour.

    The post The TikTok Strategy: Using AI Platforms to Take Over the World appeared first on Thailand Business News.

    A curious combination of prediction-technology and human censors enables ByteDance to create a dynamic global video ecosystem.

    While the BAT – Baidu, Alibaba and Tencent – dominate internet browsing, e-commerce, messaging and gaming in China, one kind of success has eluded them so far. Despite their might, they have yet to gain much ground beyond China, with the possible exception of Alibaba in Southeast Asia.

    Recently, though, a newer Chinese big tech firm, ByteDance, has managed to secure vast consumer markets on a global scale with its video platform, TikTok.

    Hugely popular with teenagers and millennials, TikTok – known as DouYin in China – is a social media application used for creating and sharing short videos. Lasting 15 seconds or less, the typical clip features fun music, a skit, lip-sync, dance or light-hearted humour.

    Users often participate in “challenges” or create “duets”, i.e. videos with split screens built on existing content.

    The app has been downloaded more than one billion times so far, with a global footprint including India, the United States, Japan, South Korea, European nations, Brazil and much of Southeast Asia. In the first quarter of 2019, it was the third most downloaded app in the world after WhatsApp and Messenger.

    TikTok is a consumer AI success story, as I explain in my upcoming case study, “ByteDance Beyond China: Leveraging Consumer Artificial Intelligence (AI) from Toutiao to Musical.ly and TikTok”, co-written by Minh H. Vo, INSEAD PhD candidate, and Anne Yang, INSEAD Research Associate. TikTok relies on AI technology in two ways.

    First, on the consumer side, its algorithms quickly learn individual preferences, as they capture not only the users’ “likes” and comments, but how long they actually watch each video. As the clips are very short, TikTok’s algorithms quickly build sizeable datasets.

    Secondly, on the producer side, AI also helps content creators craft viral videos. It simplifies video editing and suggests music, hashtags, filters and other enhancements that are trending or have been proven popular based on the category.

    This AI recipe is so effective that experts have cautioned against TikTok addiction. Similar to Facebook and Instagram users, the average TikTok user spends 52 minutes per day on the app. In that timeframe, they may watch more than 200 videos, including carefully targeted ads or offers.

    In short, ByteDance combines prediction-based AI and network effects on its vibrant multi-sided platform. More and more users join for a highly personalised stream of content they find addictive, and ever more producers join the ecosystem to create these quickly trending videos.

    Advertisers and vendors follow with well-targeted ads and offers. AI tightens the connections between players so that each can find a valuable niche in a thriving community. It is perhaps no wonder that the company became, in November 2018, the world’s most valuable start-up, estimated at US$75 billion, one year after TikTok’s international launch.

    Growing pains: AI-based platforms can be victim of their own success

    However, growing at breakneck speed isn’t without difficulties. AI-enabled content consumption and production generate their own…

    Read More

    The post The TikTok Strategy: Using AI Platforms to Take Over the World appeared first on Thailand Business News.

    11 October 2019
    Medias
    https://www.thailand-business-news.com/?p=73513
  • Thailand drops to 40th in WEF Global Competitiveness Report

    Thailand’s competitiveness ranking has dropped two spots from 38th to 40th in the World Economic Forum’s Global Competitiveness Index rankings for 2019

    The post Thailand drops to 40th in WEF Global Competitiveness Report appeared first on Thailand Business News.

    Thailand is the 40 most competitive nation in the world out of 140 countries ranked in the 2018 edition of the Global Competitiveness Report published by the World Economic Forum.

    Competitiveness Rank in Thailand averaged 35.31 from 2007 until 2019, reaching an all time low of 40 in 2017 and a record high of 28 in 2008.

    In its 2019 Global Competitiveness Report, the WEF measured the strength of 103 key indicators, such as inflation, digital skills and trade tariffs, across 141 countries.

    Singapore has overtaken the U.S. to become the most competitive nation in the world, according to the World Economic Forum (WEF).

    The changing geopolitical context and rising trade tensions are fuelling uncertainty and could precipitate a slowdown. However, some of this year’s better performers in the GCI appear to be benefiting from the trade feud through trade diversion, including Singapore (1st) and Viet Nam (67th), the most improved country in this year’s index.

    Asia-Pacific is the most competitive region in the world, followed closely by Europe and North America .

    With a score of 84.8 (+1.3), Singapore is the world’s most competitive economy in 2019, overtaking the United States, which falls to second place. Hong Kong SAR (3rd), Netherlands (4th) and Switzerland (5th) round up the top five.

    The 10 most competitive countries in the world

    1. Singapore
    2. United States
    3. Hong Kong
    4. Netherlands
    5. Switzerland
    6. Japan
    7. Germany
    8. Sweden
    9. United Kingdom
    10. Denmark

    The presence of many competitive countries in East Asia and the Pacific makes this region the most competitive in the world, followed closely by Europe and North America.

    In Asia Pacific, Singapore leads the regional and the global ranking thanks to a top-10 performance in seven of the 12 GCI pillars, including Infrastructure (95.4), Health (100), Labour market (81.2), Financial system (91.3), quality of public institutions (80.4) and it takes advantage of being the most open economy in the world. It is followed by Hong Kong SAR (3rd), Japan (6th), and Korea (13th).

    China is 28th (the highest ranked among the BRICS) while the most improved country in the region this year (Viet Nam) is 67th. The ranking reveals how heterogenous the regional competitiveness landscape is. Although the region is home to some of the most technologically advanced economies in the world, the average scores of the innovative capability (54.0) and business dynamism (66.1) are relatively low, lagging behind Europe and North America.

    The Global Competitiveness Report 2019 reveals an average across the 141 economies covered of 61 points. This is almost 40 points short of the “frontier”. It is a global competitiveness gap that is particularly concerning, given the world economy faces the prospect of a downturn. The report’s survey of 13,000 business executives highlights deep uncertainty and lower confidence.

    The post Thailand drops to 40th in WEF Global Competitiveness Report appeared first on Thailand Business News.

    9 October 2019
    Economics
    https://www.thailand-business-news.com/?p=76231
  • Thailand to join RCEP in a bid to form world’s biggest trading bloc

    For Thailand, the RCEP agreement may not significantly change Thailand’s trade structure because Thailand already has trade agreements with ASEAN and the other six countries

    The post Thailand to join RCEP in a bid to form world’s biggest trading bloc appeared first on Thailand Business News.

    During the ASEAN summit earlier this year in Bangkok, the Thai government, as the ASEAN chair, pushed RCEP members to agree to conclude RCEP talks by the end of this year.

    RCEP is a proposed free trade agreement between the 10 ASEAN members and the six Asia-Pacific countries with which ASEAN has free trade agreements, namely Australia, China, India, Japan, South Korea and New Zealand.

    Once agreed, RCEP will create a massive economic bloc representing 32.3% of the world’s gross domestic product (GDP). The combined population of RCEP member countries totals 3.589 billion or 48% of the global population and the combined trade within the bloc has reached USD11.4 trillion or 31% of global trade.

    No significant changes for Thailand

    For Thailand, the RCEP agreement may not significantly change Thailand’s trade structure because Thailand already has trade agreements with ASEAN and the other six countries, which helped double Thai exports to these countries from 2010 to USD148.5 billion last year.

    More than half of Thailand’s exports went to RCEP countries. They included car and parts, chemicals and plastics, refined petroleum, electronics and parts. At present, foreign direct investment (FDI) from the RCEP members in Thailand accounted for over 70% of total FDI.

    Moreover, as the RCEP market is set to expand with a growing middle class, Thailand will have a better chance to capitalize on the thriving market in the region.

    Slow progress

    However, the talks have progressed slowly. The dialogue partners have completed negotiations on only seven of the 20 RCEP chapters.

    Members are still unable to reach agreement on contentious issues like rules of origin and details of how members will open their markets to goods, services and investment under the RCEP framework.

    In particular, India has demanded strict criteria to determine the rules of origin, fearing an influx of Chinese goods after the RCEP agreement. India already suffers a trade deficit with China to the tune of USD53 billion. The Indian business sector is not convinced that RCEP will create a win-win situation.

    RCEP regained significance after the Trade-Pacific Partnership trade talks, another free trade project in the Pacific, lost steam after the US withdrew.

    Challenge awaits local industries

    However, RCEP may also pose a challenge for Thailand if local industries fail to compete on a level-playing field with other RCEP members, especially Vietnam which is emerging as a strong contender to draw foreign direct investment in electronics production.

    Additionally, members of Thailand’s civil society have voiced concerns that the benefits from RCEP may only go to big business, while some RCEP chapters may adversely affect those at the grassroots level. For example, the prospective RCEP intellectual property protection chapter may restrain Thai farmers’ ability to utilize plant varieties, endangering efforts to promote bio-diversity.

    Moreover, local communities are concerned that the RCEP agreement may provide protection to foreign investors at their expense, in issues such as land ownership. Uncontrolled investment can also cause harmful effects on the environment, such the dumping of industrial waste.

    Source link

    The post Thailand to join RCEP in a bid to form world’s biggest trading bloc appeared first on Thailand Business News.

    8 October 2019
    Trade
    https://www.thailand-business-news.com/?p=75264
  • Innovative Asian Blockchain Companies Who Are Taking Over

    The acceptance and regulation of cryptocurrency in Asia may be polarised depending on location, but one thing is for sure. Companies spanning the whole of Asia value blockchain technology and are putting it to good use.

    The post Innovative Asian Blockchain Companies Who Are Taking Over appeared first on Thailand Business News.

    Asia has always been at the forefront of technological innovation, and that is no different when it comes to blockchain technology. What was primarily developed to make peer-to-peer payments easier has now merged into new areas.

    The bottom line is that blockchain appears to have few boundaries – and Asian companies are realising this. Here are the most innovative Asian blockchain companies that should be on your radar.

    Dacsee: Ride the Blockchain Revolution Together

    Dacsee is another ride-share company that help people get to where they need to be conveniently, while also doing good for the planet. All payments are made on the blockchain to reduce costs, but the commission that the company takes from drivers’ crypto wallets is minute compared to competitors.

    Low fee wallets have always been held in high esteem by us all. Hence the reason why millions of crypto enthusiasts have chosen the Luno Bitcoin wallet which continues to grow in popularity. This safe wallet has smaller fees than competing wallets to help more people get the most from their digital currency.

    Hara: Helping Rural Workers

    Hara is a blockchain-based company that has the overarching aim of helping farmers and workers in similar situations. They store data on the blockchain so people can easily access things like the prices of crops, land ownership and more.

    When a farmer contributes to the data, they are rewarded with Hara tokens, which can then be swapped for fertilisers and other common farmer needs.

    In certain areas of Asia, there is a significant lack of financial inclusion which forces people to seek financial solutions from untrustworthy or bad-intentioned groups, such as loan sharks. This results in hyperinflation and problems for farmers. By using the data on Hara they can provide established loan providers with the information needed to secure more favourable loans.

    Bluzelle: Renting Out Computer Space

    There has been a positive trend of people sharing what they have to make a little bit of money. From people listing spare rooms on Airbnb to back seats on BlaBlaCar and Uber, where there is space there is potential.

    Bluzelle taps into these ideas by helping users get paid to share unused space on their computers. When used, data is stored in multiple locations at once, which also means there are more security and back-up solutions in the event of cyberattacks.

    Tripio: Kicking Fake Reviews into Touch

    Tripio has a simple but effective concept. It aims to be the best platform to help people book travel accommodation using the blockchain. Asia is a much-loved destination around the world and it is certainly a promising place to make it work.

    One of the best things about such a platform is that it will help clarify common problems in hotels such as room mix-ups, incorrect reservations – and even prevent people from posting fake reviews.

    Overall Positive…

    The acceptance and regulation of cryptocurrency in Asia may be polarised depending on location, but one thing is for sure. Companies spanning the whole of Asia value blockchain technology and are putting it to good use.

    The post Innovative Asian Blockchain Companies Who Are Taking Over appeared first on Thailand Business News.

    7 October 2019
    Banking
    https://www.thailand-business-news.com/?p=76201
  • Malaysia and Thailand better positioned to develop e-commerce

    Countries with more developed infrastructure, such as Malaysia and Thailand, are better positioned to develop e-commerce. Thailand could be set to experience a surge in e-commerce activities over the coming years

    The post Malaysia and Thailand better positioned to develop e-commerce appeared first on Thailand Business News.

    Online shopping is increasingly popular in key ASEAN cities, thanks to improved infrastructure and the variety of payment options, including cash-on-delivery, bank transfer or paying at the 7-Eleven store.

    Moreover, online marketplaces provide a wide array of imported items, attractive promotions and discounts. E-commerce is also an attractive alternative for people in rural areas where shopping malls may not exist; and those who live in the city, where traffic congestion is a huge issue, as in Jakarta.

    This is especially true when it comes to consumer electronics and IT gadgets – a category among the most researched online, alongside apparel and cosmetics.

    E-commerce in ASEAN is Reaching an Inflection Point

    The recent entry of Chinese tech heavyweights into ASEAN may help the region reach its vast potential for e-commerce, as investments by Chinese companies, such as Alibaba, JD.com and Tencent have surged in recent years. These Chinese investors have not only injected capital into e-commerce companies, they have also brought in digital payment and logistics expertise, which will help ease the two major pain points that have been holding back the business-to-consumer (B2C) segment of e-commerce, especially cross-border, in ASEAN.

    Thailand better positioned to develop e-commerce

    Countries with more developed infrastructure, such as Malaysia and Thailand, are better positioned to develop e-commerce. Thailand could be set to experience a surge in e-commerce activities over the coming years.

    First, alliances have been formed between Chinese e-commerce giants and large Thai retailers with extensive distribution networks, such as the joint venture between JD.com and Thai retailer, Central Group.

    Second, Thailand already has decent infrastructure connectivity, and there has been significant rise in the number of e-commerce logistics enablers.

    Third, the government is proactively pushing for e-payment adoption via the Promptpay scheme[1] and use of QR codes.

    Fourth, Thailand has one of the highest smartphone penetration rates in ASEAN.

    Indonesia has a high long-term e-commerce potential given its large and growing middle class, as well as its young consumer market. Moreover, living in gridlocked Jakarta traffic sometimes makes consumers hesitate to commute for shopping. The two Alibaba-invested online marketplaces, Lazada and Tokopedia, have occupied about half of the national web traffic, while Shopee tops the mobile apps ranking.[2] While e-commerce players focusing on integrating infrastructure within the ecosystem, such as payments and logistics, they also emphasise building trust with consumers and improving consumer experiences.

    Technology Leapfrogs and Fragmented E-commerce Market

    More than 60% of ASEAN’s population is under 35 years old, creating a large future consumer market. At the same time, the region’s youth are tech-savvy, and e-commerce is poised to grow exponentially in Southeast Asia in the coming years.

    It is important to recognise that consumers here are technology ‘leapfrogs’. Outside of first-tier cities, many have bypassed desktops, accessing digital platforms primarily through mobile devices. Mobile-first consumer-to-consumer (C2C) marketplace, Shopee, is gaining market share in Thailand and Indonesia.

    In Southeast Asia, the B2C e-commerce market is quite fragmented, as no single platform is preferred by more than 20% of consumers in any Southeast Asian country.[3] Today’s ASEAN market includes classifieds (e.g. Mudah and OLX), C2C (e.g. Tarad, Tokopedia, Bukalapak), B2C (e.g. Lazada, All IT Online Store, Blibli), B2B and retailers’ own sites (e.g. BEST DENKI, Fresh Gadgets, Urbanlife, IT City, Banana, Power Buy).

    In ASEAN, most electronic brands and retailers sell via B2C marketplaces as well as their own websites, in addition to distributing through e-tailers, like Central Online and MAP.

    Major Online Platforms in ASEAN

    Online MarketplacesMajor ASEAN Markets
    LazadaIndonesia, Malaysia, The Philippines, Singapore, Thailand and Vietnam
    ShopeeIndonesia, Malaysia, The Philippines, Singapore, Thailand and Vietnam
    11 StreetMalaysia, Thailand
    All IT Online StoreMalaysia
    ipmart.com.myMalaysia
    Lelong.myMalaysia
    JIBThailand
    OricoThailand
    Munkong GadgetThailand
    InvadeITThailand
    BlibliThailand
    JD.idIndonesia
    EleveniaIndonesia
    BhinnekaIndonesia
    TokopediaIndonesia
    BukalapakIndonesia

    Major Online Marketplaces in ASEAN

    There are a huge number of online shopping portals selling consumer electronics, electronic accessories, and IT gadgets in ASEAN. The list below is not exhaustive, but it gives a general picture of the online platforms in the region.

    Lazada Lazada is a horizontal marketplace where consumers can find a wide selection of product categories. The company, introduced by Rocket Internet in 2012, has a presence in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. Lazada hosts more than 155,000 local and international sellers, as well as 3,000 brands. Its recent acquisition by Alibaba has cemented its position, playing a key role in Alibaba’s development in Southeast Asia.

    ShopeeShopee is a peer-to-peer online marketplace that allows individuals to easily upload products for sale using mobile phones. For now, Shopee does not charge listing fees or commission from transactions. In ‘mobile-first’ countries, Shopee is a primarily mobile platform, with a presence in Singapore, the Philippines, Malaysia, Thailand, Indonesia, Vietnam, as well as in Taiwan.

    11 Street11 Street is an open marketplace operated by Celcom Planet Sdn. Bhd. – a joint venture between Celcom Axiata Bhd. and SK Planet Ltd. 11 Street is a horizontal e-marketplace with product assortments spanning fashion, to health and beauty, to baby and toys, to mobile, IT and camera, to home electronics and accessories. The platform allows three types of sellers: individual, business and global. By filling in a business registration form and providing bank account and supporting documents, such as business registration certificates, buyers can start selling on 11 Street.

    All IT Online – This online platform is part of ALL IT Hypermarket, offering portable hard drives, USB mice, power banks, power sockets, Bluetooth headsets, mini mobile dual-stick controllers, DVD writers, wireless speakers, activity trackers, and flash drives, among others. It currently only provides shipping within Malaysia, with delivery to Peninsular Malaysia taking three to five working days and East Malaysia taking five to seven working days. Alternatively, buyers can choose to collect their purchases at its physical stores at Low Yat Plaza, Digital Mall and IOI City Mall.

    ipmart.com.my – Product categories include phone and tablet accessories, notebooks and PC accessories, projectors, printers, cameras, and gaming. The online portal is managed and operated by MY Social Network Sdn Bhd. With offices in Shenzhen, Guangzhou, Zhuhai, Hong Kong, Malaysia and the US, the portal source products from suppliers, including manufacturers and authorised distributors in the region.

    Lelong.my – The online marketplace hosts about 7,000 sellers, including both local and international offline retailers and online merchants.

    JIBJIB computer group is a specialised computer and IT products department store in Thailand. It operates an online shopping site for electronic gadgets, carrying brands like Samsung, ViewSonic, Acer, Asus and others.

    OricoOrico is an online electronics store in Thailand, selling a wide range of accessories like portable hard drives, USB power banks and cables.

    Munkong Gadget – With its own e-commerce platform, Munkong Gadget is a specialised audio gadgets and accessories chain store in Thailand. Products include earphones, loudspeakers, custom headphones, earphone cables, and other gadgets.

    InvadeIT InvadeIT is an electronics marketplace offering attractive prices, good customer service and quick delivery. Its product categories range from laptops, tablets and smartphones to computer hardware, peripherals, printers and scanners, as well as general electronic items and accessories.

    Blibli – Established in 2011, Blibli.com was one of the leading e-commerce companies in Indonesia, offering diversified products categories, including a wide variety of electronics and gadgets.

    JD.id – A diversified online portal, JD.id provides a wide variety of IT gadgets. Launched in 2015, it is a subsidiary of the Chinese e-commerce company, JD.com.

    Elevenia – An online marketplace hosting more than 30,000 sellers with diverse products, including home appliances, computers and gadgets. Brands include Sony, SanDisk, Oppo, Lenovo and others.

    BhinnekaBhinneka is a store chain specialised in home appliances, electronic gadgets and accessories. It also has an online shopping platform.

    Tokopedia – Launched in 2009, Tokopedia is one of the biggest online marketplaces in Indonesia. It allows individual sellers to open and maintain an online store for free.

    Bukalapak – Founded in 2010, Bukalapak is another leading marketplace in Indonesia, with about 3 million online merchants selling on the platform. The company also works with kiosk store owners as agents who earn commission by helping customers to place orders on Bukalapak.

    Selling on Online Marketplaces

    Lazada

    Lazada is the key B2C e-commerce market player in the region. A seller who wishes to list on the marketplace must submit valid documentary proof of authorised distributorship. Lazada’s online merchants do not have to pay listing fees, instead they pay a commission (with the rate based on the product category) only when the product sells. All sellers get paid on a bi-weekly basis. The marketplace monitors product information provided by the sellers to ensure that all items comply with laws and regulations, and to combat counterfeit merchandise.

    Lazada gives sellers the wide range of backend selling platform, business management, and distribution tools. It also runs a cross-border logistic programme for all sellers. Sellers only need to stick the label on the parcel and deliver to one of Lazada’s sorting centres in Asia (Hong Kong, Shenzhen, and Korea), then the company’s cross-border logistic team will take care of the rest, which includes export and import documentation, custom clearance and last-mile delivery.

    Cross-border delivery takes three days, but if the product is already in the local warehouse, it will only take one day. A shipment pre-alert is often sent to customs several days prior to the expected arrival date. This notice allows customs officials time to prepare for the arrival. Lazada offers multiple payment methods: cash on delivery, credit/debit card, Lazada Wallet, PayPal/AMEX, as well as an instalment payment plan.[4]

    At the time of writing this report, Lazada’s sign-up for new cross-border sellers is suspended temporarily, while local sellers can still sign up. If a Hong Kong seller with local operations in any of those ASEAN nations and all the required legal documents can sign up as a local seller.

    Shopee

    Shopee is a fast-growing online shopping platform in the region. It is simple to register on the platform – just open the Shopee app, take a picture of the product for sale, write a short description, set a price, and then upload the picture and the product will be listed on Shopee. The simple steps to upload and sell products is one of the reasons Shopee became popular quickly after its launch in 2005.

    The platform focuses on small businesses and budding retail entrepreneurs. It also accepts cross-border sellers from Mainland China and Hong Kong. Sellers can organise their inventory and measure their online store’s performance with Shopee’s Seller Assistant feature which is accessible on a mobile phone. The platform provides an in-app chat function that allows potential customers to communicate with the sellers about the product and make transactions directly. This is a very popular feature, as many consumers prefer contacting the sellers directly so that they can negotiate the price and learn more about the product.

    Anyone can sign up on Shopee, while all the listed products will be vetted through its content team to ensure that the merchandise are not illegal. Since almost anyone can start selling on Shopee, sellers are bound to face a large number of competitors who may be selling the same product. For the same reason, customers are bound to be more careful about the sellers on Shopee. Shoppers can look at reviews, ratings and whether they are from Shopee Mall (managed sellers) or Preferred sellers (who meet certain criteria).

    According to Shopee, successful sellers are those who proactively study the local market trends and select the right products with competitive pricing. Good customer service when handling in-app chats with buyers is also crucial. Customer reviews and ratings are effective ways for customers to know if a seller is trustworthy.

    Social Commerce

    In addition to a frictionless checkout experience, search-engine optimisation and marketing, sales opportunities arising from social networking platforms have become more apparent in key ASEAN countries. Nowadays, people spend much of their time on social networks built around their interests and relationships. As a result, the shopping process is shifting from one driven largely by the goal of finding an item, to one that is more based on discovering things within consumers’ social lives and circle of friends.

    The high mobile phone penetration in ASEAN, the fact that the ASEAN consumer are reluctant to provide their financial and personal information online, and less than 30% of the population (except Malaysia and Singapore) using either debit or credit cards to make payments[5], are success factors for selling via social networks in the region. In Thailand, a clear majority of online shoppers make purchases through social media.

    In social commerce, an order is usually made online while the payment is done offline. Merchants set up ‘shops’ on Facebook or Instagram and post images and details of goods for sale. Shoppers browse and inquire about product availability and arrange a method of payment, sometimes through a popular chat app such as LINE in Thailand.

    Social media is an ideal selling platform for electronic accessories and IT gadgets, as buyers can share their user experiences. User comments are of paramount importance on purchase decisions as nowadays people trust such opinions more than advertising.

    Among all social media, Facebook and Instagram reign supreme as the most effective platforms, with links to shoppable content to allow users to smoothly transition from browsing to buying. Social commerce presents a great opportunity for small suppliers or non-brands to test the consumer markets in ASEAN without too much financial commitment.


    [1] PromptPay is an interbank mobile payments system launched in Thailand in January 2017. PromptPay is one of the initiatives under the Thai government’s National E-payment initiative.

    [2] www.ecommerceiq.asia

    [3] Bain Report “Can Southeast Asia Live Up to Its E-commerce Potential?” 2016 Bain & Company

    [4] For more details on each payment method, please refer to Lazada – Payments

    [5] World Bank, The Little Data Book on Financial Inclusion 2018

    Please click here to download the full research report.

    Source link

    The post Malaysia and Thailand better positioned to develop e-commerce appeared first on Thailand Business News.

    7 October 2019
    Asean
    https://www.thailand-business-news.com/?p=76031