Food and beverage, electronics, and appliances are just a few of the segments that make up Thailand’s retail market. Many business owners choose to start a Retail Business in Thailand because of its extensive potential and opportunities. Before beginning the Company Registration Process in Thailand, you must first become familiar with the current economic climate. Only then will you be able to anticipate what will happen in the retail industry in 2022.
Trends in the Retail Industry
The retail industry’s anticipated trends for this year will largely be a reflection of how the events of the previous two years affected it. Since the pandemic began, the market has witnessed a sizable change in consumer lifestyle and behavior that embraces a wholly digital culture. Having said that, the theme of the retail trends in 2022 will be connectivity through digitization.
• Continuous Influence of E-commerce
The COVID-19 pandemic has accelerated the trend of online shopping among Thai citizens of all ages and income levels. This is especially true due to the abundance of different e-commerce channels. Consumers have unrestricted access to a wide range of products and services thanks to social media marketplaces, delivery apps, and retailer e-commerce platforms. As a result, if they want to spur growth going forward, many business owners should think about creating an online presence across various channels. Thai consumers prefer online marketplaces and social media is the most common sales channel, according to Thailand’s Ministry of Digital Economy and Society. The value of the e-commerce market will reach to 1.2 billion baht by 2025.
• The Emergence of the MetaVerse
One of the most popular buzzwords in Thailand’s retail sector right now is the term “Metaverse“. Entrepreneurs can use this tool to provide services that conventional retail stores cannot by using the enormous potential it offers to improve shopping experiences.
The Metaverse is a special online environment that combines elements of social media, virtual reality, augmented reality, and cryptocurrency to let users communicate and conduct transactions virtually. Retail Business in Thailand will have a chance to create hybrid shopping experiences that combine the offline and online worlds thanks to the growth of the Metaverse. Experts predict that the Metaverse will be one of the hottest retail trends in 2022 due to its enormous potential.
• The Important Role of Automation
Retailers will use technology to enhance their operations as consumers continue to optimize digitisation to improve their experiences. Hence, automation plays a starring role. Automation in Thailand has accelerated recently as businesses have realized its transformative potential to boost productivity and efficiency, particularly in retail industries like food processing, electronics, and automotive. Local businesses use this tool to carry out labor-intensive procedures like welding, assembling, cleaning, and dispensing. Organizations occasionally use cutting-edge technology, such as robots, to provide customer service.
Retailers are using these trends to help their customers by assisting them in meeting the challenges posed by the pandemic. Marketers assume that they will continue to be common in the near future because of this.
Challenges and Solutions in the Retail Industry
However, the pandemic also gave rise to a particular set of challenges for Retail Business in Thailand, such as:
• Supply Chain
Since 2021, the high cost of shipping goods and supply chain disruptions have been a source of concern for exporters, and it appears that this concern will persist into 2022. Corporate leaders are anticipating a slowdown in global economic growth. However, this year’s export growth rate may drop from last year’s 15% to 16% to roughly 5% to 8%.
Solution
Experts advise businesses to continue investing in technology, diversify their manufacturing partners and suppliers, and create a strong risk management strategy in order to shield them from the effects of these disruptions.
• Labor Market
The pandemic’s modifications have an impact on how the labor market functions. Today’s workers have higher expectations, which some businesses find difficult to meet. As a result, it is now harder for the retail sector to find employees.
Solution
There are two approaches to solving the problem. One is for businesses to reconsider their hiring standards to match the needs and anticipations of interested candidates. Another is to increase technological investments while minimizing the human workforce. To overcome the precarious labor market, businesses now need to make significant changes.
How this Article will Help You?
If you want to enter the retail sector to take advantage of opportunities, understanding the trends and problems influencing Thailand’s landscape in 2022 will help you create a business plan with a higher success rate. To effectively expand your business and support the nation’s economic recovery, you can base your products and services on what customers want and need. Consult Konrad Legal‘s experts to register a company for foreign investors in Thailand. We offer services to make the process of incorporating your business simple and convenient for you. You can also email us your requirements at [email protected].
