E-COMMERCE

All posts tagged E-COMMERCE

More e-commerce sites may follow Ensogo’s demise

Published August 17, 2016 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/More-e-commerce-sites-may-follow-Ensogos-demise-30288940.html

E-COMMERCE

THE downfall of Ensogo, Southeast Asia’s top daily-deal and flash-sales website, is rocking Thailand’s e-commerce ecosystem, but more victims could emerge as giant multinational players are parading to the business scene, observers say.

Pawoot Pongvitayapanu, president of the Thai E-Commerce Association, said the Thai e-commerce industry was now the game of giant players. China’s Alibaba and US-based Amazon are cited as the big players that are venturing into the local market.

The association is now working to find ways to help local e-commerce businesses survive the fiercer competition, he said.

It is also looking for better oversight by regulators.

“The regulators should monitor whether any player is dominating the market. They should also come up with a policy or measures to prevent monopolies,” Pawoot said.

Alibaba Group Holding has built a presence in this region through the acquisition of Lazada. Its financial arm, Ant Financial Services Group, this month also announced a plan to acquire a 20-per-cent stake in Ascend Money, an online payment service provider in Thailand.

China’s Commerce Ministry said on its website on Monday that as a part of Ant Financial Services, Alipay Hong Kong Corp had the right to raise the share to 30 per cent in the future. Ant, providing services such as online payment, is valued at close to US$60 billion (Bt2.1 trillion).

Meanwhile, Amazon has announced a plan to invest hundreds of millions of dollars in Indonesia.

“It’s clear that Alibaba is using Lazada as the channel to ship Chinese products to the region. That will not only put pressure on e-commerce businesses in Thailand but also all SMEs in Thailand,” Pawoot said.

Tiwa York, chief executive officer of Kaidee.com, said that though e-commerce marketing in Thailand was still in an early stage, it was necessary that all local players improve their services and ensure that their sites offer the right variety to fight big players.

Local e-commerce businesses have to identify what their position is and where their target market is. They should be niche players and focus on segmented e-commerce, he suggested.

His Kaidee.com focuses on customer-to-customer deals. It is positioned as a platform for consumers who want to sell and buy used products.

Regarding Ensogo’s sudden death, he said a daily-deal business model tended to grow slowly, as those deals are in fact a price war.

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Thailand first Asian market for Taiwan’s E-Commerce firm

Published May 19, 2016 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/Thailand-first-Asian-market-for-Taiwans-E-Commerce-30286137.html

E-COMMERCE

TAIWAN-BASED PC Home Online, which sees the C2C (consumer-to-consumer) e-commerce platform as having high potential across Southeast Asia, has reaffirmed Thailand as its first operational market in the region for C2C business.

PC Home Online, a large e-commerce operator, in fact established a subsidiary – PC Home Thailand – via the joint-venture model with Cal-Comp Electronics (Thailand) early last year.

The Thai unit yesterday revealed plans to penetrate the local e-commerce market, initially focusing on C2C e-commerce aimed at encouraging individuals and small businesses to benefit from PC Home’s platform, www.pchome.ac.th.

The e-commerce platform is set to be a comprehensive website offering C2C e-commerce for individual users for selling unique and varied products; B2C (business-to-consumer) for brands selling general products; and B2B2C (business-to-business-to-consumer) for small and medium-sized enterprises. Its C2C e-commerce offers a comprehensive website designed to offer 12 main product categories, with over 1,000 sub-categories as well as the provision of 300,000 Taiwanese products.

Jason Huang, director of PC Home Thailand, said the company would bring its successful model from Taiwan to develop the C2C, B2B and B2B2C segments, but providing C2C service first.

Huang said the company regarded Thailand as a high-potential market for e-commerce business, with the country’s overall online retail sector recording healthy growth of 30 per cent last year with a total value of Bt46 billion.

The market is expected to reach Bt58 billion this year.

E-commerce is, however, less than 1 per cent of the Kingdom’s retail business, as many Thais are still reticent about online transactions, while logistics and payment services need to be developed further to fulfil market needs, he said.

“Our mission is to build a better e-commerce ecosystem in Thailand. We want to help the economy become more active by promoting SMEs to sell their products online, free of charge, to achieve their full potential in terms of customers,” he added.

The company will officially launch full service this year after conducting a soft launch and trial of its C2C platform for a year, Huang said, while declining to disclose the target number of sellers and buyers as well as transaction and gross merchant value (GMV) for the Thai market.

Meanwhile, in Taiwan, PC Home Online has more than 100 million product items with a GMV of over 143 million New Taiwan Dollars (Bt155 million).

The main Taiwanese operation has over 1 million sellers and more than 8.8 million users, with its revenue stream coming from advertising and transaction fees.

“Asia as a whole is a market with great potential for C2C e-commerce, which is our strength. We have already stepped into the US and Japan, and Thailand is the first country for us in Southeast Asia,” the director said.

In Thailand, there are currently over 5 million stock-keeping units (SKUs) for C2C e-commerce, but it is expected that the number will eventually be much greater than the 100 SKUs in Taiwan, as Thailand’s population is three times bigger, he explained.

The top three bestselling products on PC Home Online are fashion, cosmetics and accessories.

Meanwhile, apart from PC Home Online, there is another Taiwanese-Thai joint venture, called TVD Shopping.

Established by TV Direct and Taiwan-based MoMo.com Inc, the company offers 24-hour home shopping via a TV channel and online shopping via www.tvdmomo.com.

Thanabul Maturanont, managing director of TVD Shopping, said TVD achieved revenue of Bt1 billion last year, with growth of 10 per cent targeted for 2016.

The company’s core business is to offer home shopping and online shopping service via multi-channels, including television, PC and mobile application.

Central steps up e-commerce drive

Published May 18, 2016 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/Central-steps-up-e-commerce-drive-30284761.html

E-COMMERCE

Shoppers enter CentralWorld. Central Group is revving up efforts to boost online sale./Reuters

Shoppers enter CentralWorld. Central Group is revving up efforts to boost online sale./Reuters

AT CENTRAL GROUP, online shopping contributed only 0.5 per cent of total sales last year. In a country where mobile-phone penetration is more than 100 per cent, with smartphones accounting for 70 per cent of phones in use, it is more than obvious that the retail giant must step up its e-commerce to be ahead of rival retailers and small tech companies.

This makes a convincing argument for Central’s acquisition of Zalora’s e-commerce businesses in Thailand and Vietnam. An executive of Central confirmed the reported acquisition, saying more details should be released next week pending the wrapping-up of legal documents.

Zalora is Asia’s leading online fashion destination and is the largest fashion-focused e-commerce site in Southeast Asia, with presence in Singapore, Indonesia, Malaysia, the Philippines, Thailand, Vietnam, Hong Kong and Brunei.

The service has been available in Thailand for three years, offering choices of shoes, clothes and beauty products from local, regional, and international brands. It is now No 1 in the fashion category for online shoppers, who make more than 2 million visits to the site per month. More than 45 per cent of Zalora’s sales in Thailand come through mobile devices.

Such an active environment is something that traditional retailers like Central want to experience. Expanding into online business is also in line with Central Group’s vision set by its chief executive officer Tos Chirathivat, who realised that the emergence of online shopping would significantly affect the group’s retailing business.

At a recent media conference, he said the Internet would be the future of the group’s retail business.

Central established COL, its online shopping unit, in March last year after a one-year trial period. Last year, while Central Group reported overall retail sales of about Bt160 billion, COL generated Bt800 million in sales. That was equivalent to only 0.5 per cent of the total.

In a recent interview, COL chief Worawut Ounjai unveiled an ambitious plan to boost at proportion to 10 per cent of Central’s sales by 2020. He also unveiled a plan to allocate more than Bt1 billion to improve the business infrastructure as well as acquire local and international firms involved in website and logistics developments.

Mergers and acquisitions (M&As) as well as joint ventures were also options to grow the online business, both within and beyond Thailand. The group was yearning for any partnership that would result in better penetration into the overseas markets as well as product sourcing.

“In Thailand and other countries in Southeast Asia, online shopping activity accounts for only 0.5 per cent of total retail sales today. The worldwide average value of online shopping accounts for about 5.6 per cent of total retail sales, with China the highest, where online shopping is about 12 per cent of total retail sales,” Worawut said.

Zalora would fit well as a piece in the big e-commerce jigsaw.

Punnamas Vichitkulwongsa, CEO of Ascend Group, another e-commerce site, said this acquisition would be positive for the online shopping market as a whole. What matters is how the large retail brand would leverage Zalora’s strengths. COL can be a key player in fashion e-commerce if this acquisition enables stable online and offline relations with customers, he said.

Shannon Kalayanamitr, chief executive officer and founder of Moxy’s, an online shopping site for women, saw this as a sign of market consolidation.

She noted that M&As also took place in other parts of Southeast Asia, particularly Indonesia. Technology brings down borders and barriers to entry, she said. For this reason, Lazada is doing better in drawing online shoppers even though Central has been around in the retail business for decades.

“Acquiring Zalora [would] not only help its fashion category but also bring it into Vietnam with much e-commerce expertise as Zalora [Rocket people] are in the first class in Asia,” she said. M&As are good for the online ecosystem in Asean, as a sizeable number of potential buyers are out there, she added.

Alibaba Group on way to being world’s top retailer

Published April 15, 2016 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/Alibaba-Group-on-way-to-being-worlds-top-retailer-30282247.html

E-COMMERCE

CHINESE e-commerce giant Alibaba Group Holding is expected to soon surpass Wal-Mart as the world’s largest retail platform, with sales in the current fiscal year exceeding 3 trillion yuan ($463.3 billion), the company said on Monday.

Alibaba’s fiscal year started on April 1 and ends on March 31.

Wal-Mart Stores posted net sales of $478.6 billion (Bt16.7 trillion) for the fiscal year ended January 31.

The latest sales figure for Alibaba is equivalent to Sichuan’s gross domestic product last year, when the province’s GDP ranked sixth on the Chinese mainland.

Zhang Yong, the company’s CEO, said in Hangzhou city that the figure was recorded on the company’s business-to-customer platform Tmall, consumer-to-consumer platforms Taobao and Rural Taobao and group-buying site Juhuasuan.

Zhang said he expects the company will achieve annual sales of 6 trillion yuan by 2020, and that “in 2024, we want to be a business platform serving two billion consumers and tens of millions of enterprises at home and abroad”.

The company will strive to combine cloud computing and big data technologies with the Internet and the Internet of Things, as well as consumer terminal equipment, to spur its development, he said. The Internet of Things is the network of physical objects – devices, vehicles, buildings and other items – embedded with electronics, software, sensors and network connectivity that enables these objects to collect and exchange data.

Citing the National Bureau of Statistics and McKinsey & Company figures, Gao Hongbing, director of AliResearch, said that of Alibaba’s 3 trillion yuan in total trading volume, about 660 billion to 1.17 trillion yuan is newly increased consumption.

“Online shopping has been an important engine to promote consumption, which meets the nation’s strategy of promoting domestic demand,” Gao said.

Last year, Chinese consumers’ willingness to spend reached the highest level since 2012, despite the economic slowdown, according to a study published in February by Nielsen.

E-commerce set for fast growth

Published March 18, 2016 by SoClaimon

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/E-commerce-set-for-fast-growth-30281852.html

E-COMMERCE

E-COMMERCE IN Southeast Asia is small compared with the size of the population and depth of smartphone penetration, but the market looks like growing rapidly in the years ahead, according to a report released yesterday.

Online retail represents a US$6-billion (Bt209 billion) market in Southeast Asia, but with online sales below 4 per cent of total retail, the region still lags well behind developed markets and even other developing markets.

These are the findings from a report by Bain & Company and Google, “Can Southeast Asia Live Up to Its E-commerce Potential?”, which includes a survey of more than 6,000 consumers across Thailand and five other countries – Singapore, Malaysia, Indonesia, the Philippines and Vietnam.

While this does not yet match the pace of China – now a more than $500-billion market – multinational retailers are finding it harder to ignore the region’s emerging influence.

Online retail sales across Southeast Asia could hit $70 billion by 2020.

“The growth of the Southeast Asian e-commerce market is slow but significant, particularly when you consider that it started from a very small base in 2012 and has doubled every year since,” said Sebastien Lamy, a Bain partner and co-author of the report.

“We believe this region is on the cusp of a digital boom that is beginning to transcend e-commerce and impact sectors from travel and tourism to financial services and payments.

“Those that recognise its early potential in spite of persistent complexities will reap the rewards.”

While 100 million consumers in Southeast Asia have made a digital purchase, a far larger group – 150 million – has taken the first big step of researching products or engaging with sellers.

Online retail penetration may be small, but consumers are highly influenced by digital content.

For example, penetration is a mere 1.2 per cent in the Philippines, but 34 per cent of those who have made a purchase online in that country reported they were influenced by online content prior to making their purchase.

Throughout the region, some categories are already starting to score big. Fully 24 per cent of all clothing and footwear and 18 per cent of all travel is now purchased online.

Challenges remain to support the e-commerce growth, due to constraints in Southeast Asia’s logistics and payments infrastructure.

The biggest hurdle for e-commerce success is the highly fragmented nature of the region.

Region-specific cultures, regulations, infrastructures and customer preferences make it difficult to establish a presence and build scale here, which is a deterrent for foreign-owned businesses. Southeast Asia is also different from other regions in payment channels.

In many other markets, the lion’s share of payments is made via non-cash methods such as credit cards. In this region, door delivery is preferred and Southeast Asians desire other methods for payment and delivery.

More than one-third of all consumers surveyed in top cities and outlying areas alike preferred the “cash on delivery” option.

Local and regional players are thriving simply by providing a highly tailored customer experience.

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