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E-commerce in Thailand is experiencing a remarkable growth trajectory, poised to achieve revenues estimated at 7 Trillion Baht (approximately 193.4 million USD) between 2023 and 2024. Thailand is the 18th largest player in the e-commerce market, and it’s fashion, beauty, and retail have been at the forefront of this e-commerce boom.
A significant portion of this growth driven by beauty and personal care brands has a projected expansion of 5.16% from 2023 to 2028, resulting in a market volume of US$8.14 billion by 2028. This increase can be attributed to the convenience of shopping from home, an expanding middle class, and increased internet penetration.
That being said, the rising star in Thailand’s e-commerce landscape, TikTok Shop, provides businesses a platform to enhance their online presence, and is a key contributing factor to the growth of online shopping in Thailand.
In this article we’ll look at why this matters to all markets. If you want to catch up on TikTok Shop, take a look at our primer before scrolling.
TikTok Shop’s Emergence and Influence on Thailand’s E-commerce Landscape
Renowned for its engaging short-form videos and strategic influencer marketing, TikTok Shop seamlessly incorporates shopping features into its platform, commonly referred to as Shoppertainment. This term describes the rising trend in online shopping, where users actively seek enjoyable and entertaining experiences while exploring products for potential purchases.
Shoppertainment is set for remarkable growth, with expectations that by 2025, the Asia-Pacific (APAC) region will see it achieve an impressive market value surpassing USD 1 trillion. This projection aligns with its anticipated compound annual growth rate of 63% in markets including Australia, Indonesia, Japan, South Korea, Thailand, and Vietnam. In Thailand, Shoppertainment’s popularity has catalyzed TikTok Shop’s to emerge as a powerful sales channel, revitalizing online retail and making it more dynamic and interactive, especially for Gen Zs.
In Thailand, the top three most frequently purchased categories during sale season consist of beauty and personal care, fashion and accessories, and electronics. This highlights the aforementioned product categories that have played a significant role in fueling Thailand’s e-commerce growth. Furthermore, TikTok Shop in Thailand has demonstrated a persistent commitment to improving user experiences beyond the platform’s interface.
Recognizing the pivotal role of swift and complimentary delivery in enticing TikTok Shop users to complete purchases, TikTok Shop has joined forces with Flash Express, a local delivery company, to make substantial advancements in enhancing the shipping process for users. This evolution has not only introduced increased convenience for shoppers but has also paved the way for businesses to explore new avenues for boosting their sales.
These factors were instrumental in the swift rise and impact of TikTok Shop on the e-commerce scene in Thailand. Notably, during significant sale seasons, Thai TikTok users demonstrate remarkably high levels of engagement on the platform, with a staggering 80% of users actively completing purchases from TikTok shops.
TikTok Shop’s commitment to help promote Thai brands globally has inevitably helped to revitalized online retail in Thailand. Case studies of companies like renowned Thai beauty brand, Mistine, exemplify the platform’s ability to connect businesses with their target audience, ultimately leading to higher conversion rates and revenues. As TikTok Shop continues to gain prominence, its influence on shaping the future of online retail in Thailand can not be underestimated.
With our expertise, Nativex played a pivotal role in Mistine’s success in the competitive world of social commerce, especially on TikTok Shop. Nativex employed precise audience targeting to capture the demand for sunscreen products, created compelling ad creatives emphasizing product effectiveness, and harnessed the influence of Key Opinion Leaders (KOLs/KOCs) to educate and engage the audience. These strategies not only elevated Mistine’s online presence but also drove remarkable ROI growth, marking a significant achievement for the brand in the challenging beauty industry.
Read Our Full Success Case Here: Mistine
User Engagement Strategies on TikTok Shop in Thailand
With the vast number of Thailand businesses on TikTok Shop, navigating success is not without its challenges. Competition can be fierce, and standing out amidst the crowd can be a daunting task. To overcome these obstacles, Thai businesses on TikTok Shop need to strategize effectively.
1. Influencer Marketing
Thai consumers find inspiration in community trends, celebrities, and influential opinion leaders. Recognizing and seamlessly weaving these local trends into marketing campaigns can elevate relatability and drive higher engagement. Hence, collaborating with influencers is one such strategy, as these individuals can add a personal touch to your brand to help promote products and enhance brand visibility. Influencers wield significant influence over consumers’ purchasing decisions, making them invaluable assets in the world of TikTok Shop.
Nativex boasts robust connections with influencers on a global scale and maintains an extensive influencer database featuring millions of creators. This enables you to discover the ideal match for your needs with ease. As an example, Nativex utilized TikTok Shop to assist DHGate, a major cross-border e-commerce giant in China, in transitioning from a merchant without a presence on TikTok Shop to becoming a significant player in TikTok’s e-commerce ecosystem. This endeavor resulted in substantial ROI growth.
Read the full case study here: DHGate
2. Use of Hashtags
Hashtags have stuck around since the beginning of social media as a strategy to leverage in order to gain more brand awareness and engagement with your audience. The hashtag, #TikTokmademebuyit, a compelling and extensively documented cultural phenomenon that gained prominence online during the pandemic, has introduced users new ways to discover new products on the platform. Accumulating over 60 billion views, this hashtag exemplifies consumer demands that brands can leverage.
3. Leveraging Mega Sales Season
In the midst of the mega sale season on TikTok Shop Thailand, a significant 79% of users uncovered new brands, while 74% of users made purchases from local brands. Impressively, 82% of users express their intent to continue shopping even after the sales period has concluded. As a result, the mega sale season proves to be a pivotal window of opportunity for businesses seeking to establish a presence in the TikTok Shop arena.
Grow Your TikTok Shop With Nativex!
Discover the power of advertising on TikTok with our exclusive eBook – “Boost Your Growth On TikTok.” As an Official Marketing Partner for TikTok For Business, Nativex provides unparalleled expertise and insights to help you conquer the platform!