The positive expectations surrounding e-commerce market comes from the growth in online shopping. In 2018, the expansion was expected to be 8.5%, as issued by the Electronic Transactions Development Agency. In support of this is the intense level of internet penetration, which is recorded at 82% by communications agency and through social media marketing. Also, a survey conducted by Krungthai bank found that around 80% of the population uses smartphones and hence a strong e-commerce growth.
Similarly, a survey by McKinsey reported that there has been 200% expansion of digital banking penetration for 36% of the population. By recognizing the huge demand for mobile finance solutions, the banks in Thailand are increasing their digital product range. In fact, Kasikornbank and Siam Commercial Bank have released updated versions of mobile banking apps, including expanded payment and trading options.
The more is online transaction the more it will pose challenges to physical stores or operators. Having said that, it is also believed that the shopping mall retailing model is unlikely to be replaced by e-commerce. The report said that the retail developers and landlords will need to evolve their product, alongside retailers, in order to adapt to the changes in the market trends and preferences.
Another option is to accentuate physical shopping as the lifestyle experience while developing different retail space destinations, offering entertainment appeal apart from just shopping. And this could be achieved through encouraging beverage-based tenants and more foods as this can create a point of difference from online experience.
