Key influences in Thailand’s consumer and retail industry
Nowadays, there are several key influences for Thai retail businesses, such as e-commerce trend, national e-payment scheme, government stimulus measures, and digital technology.
The value of e-commerce in Thailand is projected to increase by no less than 10% annually over the next five years. Authorities are now working on the e-commerce tax law draft and obtaining comments from stakeholders.
The Thai government launched the national e-payment scheme to increase the efficiency in the infrastructure of Thailand’s payment system; allowing e-payments to be more convenient in the cashless society. Apart from 2017, national e-payment campaigns which include PromptPay, EDC Machine and QR Code, the government will also implement e-tax invoice, e-withholding tax and e-filing.
Government stimulus measures
Thai Retailers Association (TRA) forecasts that the retail sector will grow
3.8%-4.0% in 2018 and 4.5% in 2019, an increase from the estimated 3.2%-3.4% in 2017. This growth will be mainly supported by government measures to shift funds to lower income people. This includes measures such as shopping tax break, welfare card, year-end shopping and SME measures.
Key digital technologies disrupting the retail sector include mobile applications, smart beacons, internet of things, artificial intelligence, as well as virtual reality and augmented reality.
“Digital technology is changing the customer experience. In the near future, customers will likely use digital technology to explore and interact with potential purchases. This offers retailers the opportunity to transform how they interact with the consumer. Adding analytics to the mix, retailers can use predictive analytics to forecast their customers’ next moves. This is also forcing retailers to reinvent the in-store experience. Pairing digital technology with predictive analytics is a powerful combination for any retailer who is able to connect these dots. Retailers that are performing well have connected their physical and digital presence to deliver an enhanced customer experience. A seamless hand-off between and among technologies and in-store, during single and multiple journeys is becoming a must as customers come to expect a ‘phygital’ experience.”
Partner, Audit Retail, KPMG in Thailand
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