TCC Land Asset World sets up a wholesale online platform through a deal with Chinese internet giant Alibaba.com
Tor Yod Online wholesale platform will offer one-stop service for SMEs
TCC
Land Asset World, a firm controlled by tycoon Charoen Sirivadhanabhakdi, is setting up a wholesale online platform through a collaboration with Chinese internet giant Alibaba.com, aiming to bring Thai small and medium-sized enterprises (SMEs) into overseas markets.
The 100-million-baht investment in the online platform is part of the company’s 40-billion baht Tarad Tor Yod AEC Trade Centre megaproject, which will formally open in the third quarter of 2018.
Tor Yod Online is the first business-tobusiness (B2B) online platform in Thailand designed as a one-stop centre for SMEs and manufacturers looking to export products to global markets, said Soammaphat Traisorat, chief executive of TCC Land Asset World under Asset World Corporation Group.
Tor Yod Online will be a digital platform that lets local entrepreneurs connect via the e-commerce platform, expanding their trade opportunities.
Located in Ayutthaya province on 160 rai, Tarad Tor Yod AEC Trade Centre has seen 70% of the space booked by merchants and is scheduled to launch by the end of the third quarter.
“Bridging online and offline together will empower Thai entrepreneurs to grow sustainably and stably,” Mr Soammaphat said.
The online platform, which is expected to launch in August, will include e-product directory, payment, logistics and business consulting services to help SMEs create good packaging and market their products for export.
The platform will provide merchants with financial and logistical assistance through partnerships with five leading banks and couriers such as Thailand Post, Kerry Express and Nim Express.
TCC Land Asset World said merchants will be able to receive money from banks faster than the typical two weeks under current practices.
Mr Soammaphat said the company signed a memorandum of understanding (MoU) with Alibaba.com, a leading global B2B marketplace. The collaboration targets the Chinese market.
Alibaba.com’s best-selling Thai products in the B2B space are food, drinks, agricultural goods, seafood, rubber and plastic.
In addition to Alibaba, Tor Yod Online aims to collaborate with 10 B2B marketplaces in countries such as India, South Korea, Indonesia, Singapore, South Africa, Brazil and Russia.
“The new online platform will empower local SMEs to be more accessible to buyers throughout the world,” Mr Soammaphat said.
According to Tanadit Charoenchan, chief operating officer of Asset World Retail Co, SMEs that rent space at Tarad Tor Yod AEC Trade Centre will get a privileged offer from the Tor Yod Online platform, which is also open to SMEs not participating in the project.
“We will charge SMEs per successful sales transaction and then share revenue with Alibaba and other future e-marketplace partners,” Mr Tanadit said.
He said Tarad Tor Yod AEC Trade Centre in Ayutthaya spans 300,000 square metres across 10 buildings and supports 2,500 entrepreneurs.
The centre will expand with branches in a further eight provinces, mainly those bordering neighbouring countries.
The eight sites will include Ayutthaya, Chiang Mai, Udon Thani or Nong Khai, Mae Sot District in Tak, Chon Buri, Cha-am in Phetchaburi, Hat Yai in Songkhla, and one other province to be named.
Each location is expected to take 10 years for return on investment.
Jack Zhang, Alibaba.com’s general manager for global supplier development, said the time is right for cooperation with Tor Yod Online to help Thai SMEs reach the Chinese market.