FLOURISHING E-COMMERCE
E-commerce was one of the few sectors that reaped a windfall from the pandemic in 2020.
With a fresh outbreak in the middle of December and changes in consumer habits towards online shopping, the segment is expected to gather steam throughout 2021.
Thailand’s e-commerce market, excluding digital content and online booking, was predicted to grow 35% year-on-year to 220 billion baht in 2020, accounting for 4-5% of total retail, according to Priceza insight, an e-commerce data source provided by price comparison website Priceza.
The pandemic is pushing new merchants and shoppers to engage more in e-commerce. People of all ages have flooded onto e-commerce platforms.
More small and medium-size enterprises (SMEs) as well as large brands are taking seeking online opportunities during this difficult time.
Major e-marketplaces are ramping up efforts to invest in their sites to attract sales traffic and customers through promotion campaigns.
Lazada and Shopee also allow brands to open official online stores on their platforms.
The vertical e-commerce model, where vendors sell their goods and services specific to an industry, is expected to flourish. Players in this field include Pomelo, an omnichannel fashion brand; nocnoc.com, a construction material website; and konvy.com, a cosmetics website.
Immersive content for the new online shopping experience is expected to increase while livestreaming for product sales is predicted to rise on e-marketplaces and social media platforms, such as Instagram, Facebook and TikTok.
Livestreaming is anticipated to raise real-time purchases and engagement with buyers.
E-commerce platforms are required to ensure data security, following high-profile cases of data breaches in 2020.
Cross-border e-commerce is also expected to gain ground as many foreign products, particularly from China, flowing into Thailand via major e-marketplaces.
Chinese e-commerce giant Alibaba and Amazon Global Selling, the cross-border e-commerce service arm of the US tech titan, are stepping up efforts to draw local suppliers and brands to their platforms, selling their products to overseas markets.
5G NETWORK EXPANSION
Expansion of the 5G network is planned by major mobile operators in 2021 as a method to gain a foothold in the market, even amid an economic slowdown and new wave of the pandemic.
The National Broadcasting and Telecommunications Commission (NBTC) still projects to auction off the 3500-megahertz range in 2021. It is the most popular band globally for 5G adoption.
Thailand is a first mover for 5G commercial adoption in Asean, with network roll-out beginning in the second quarter of 2020. A 5G spectrum licence auction was held on Feb 16, 2020, shortly before the first wave of the pandemic hit Thailand.
During the peak of the pandemic’s first wave, 5G technology was utilised through customised robots for patient care and other healthcare solutions, helping hospitals treating Covid-19 patients.
In 2020, several industrial manufacturers began studying and partnering with major mobile operators for 5G tech solutions on a trial basis, especially in the Eastern Economic Corridor (EEC).
For consumers, more than 20 smartphone models with 5G capability have been launched in the market.
Some industry pundits predict the mass adoption of 5G technology in the country could take place in 2021, one year ahead of previous predictions, thanks to the roll-out of 5G service on the 2600MHz range.
The three big players in the mobile industry — Advanced Info Service (AIS), True Move H Universal Communication (TUC) and Total Access Communication (DTAC) — have vowed to invest in network expansion in 2021 to meet high-speed internet demand from individuals, business and industry.
Despite lacking 2600MHz range for 5G service, DTAC aims to use 26-gigahertz spectrum range secured from February’s auction for selected locations in the EEC.
DTAC is also upgrading its existing network through a combination of high-speed massive MIMO technology and 3,400 additional 4G-TDD sites on the 2300MHz network under a partnership with state telecom enterprise TOT. The partnership deal ends in 2025.
Some analysts feel DTAC is in dire need of 3500MHz spectrum, particularly for 5G service, while TUC and AIS have enough bandwidth on the 2600MHz range for 5G service.
The NBTC is expected to complete the 3500MHz auction draft plan by June. The range is now partly occupied by satellite service provider Thaicom, whose spectrum usage concession is due to end in September 2021.