Covid has affected all forms of life from the micro to macro level. At the arrival of Covid, the business sector was left baffled, and grand changes were required for sustainability. The digital industry came to the rescue at these harsh times, and “Let’s go Shopping” was replaced by “Buy Online.”
Globally, the share of online business in retail trade, saw a massive spike form 14% to 17% in 2020. Online Businesses paved the path for a digital market, even ensuring the continuity of food supply chain for domestic consumers.
Online shopping in Thailand is a necessity rather than a comfort. As per Electronic Transactions Development Agency (ETDA), approx. $49 billion, online sales were recorded, surfacing a growth rate of 14.8% in the e-commerce sector for the year 2020.
Online Business Scenario in Thailand
Although, online businesses have been very lively in Thailand, even before the pandemic. A significant chunk of the population is connected to the digital web (mainly via smartphone), the online payment system is secure, and the logistic infrastructure is active. But the pandemic era has undoubtedly given a new perspective to online shopping, making it almost inevitable. The online sector is expected to cross THB1.1 trillion for the year 2021 handsomely.
8 Impacts of Covid on Online Businesses
Companies are going Digital: It has been seen that a significant chunk of companies about (40-45%) have put more emphasis on online marketing, since the pandemic. These companies have shifted online, employed software’s, and paid particular attention to the domain of digital marketing.
Rise in Revenue Generation: Thailand’s online industry has experienced a massive boost in revenue generation. Experts estimate that online revenue streams can reach up to US$8,900M for the year 2021, with a growth rate of up to 10%.
Upsurge in Food & Personal Care Sectors: Food and personal care have been the most successful segment among Thailand’s online market stream. Their market volume has crossed about US$3,139M for the year 2021. It shows the confidence of people to buy food-related items from online platforms.
Site Optimization and Marketing Tactics: Companies are also putting their best efforts to get listed on top ranks on big search engines. It has been seen that more than 15% companies are using search optimization (SEO) techniques to improve their visibility on the digital link. The use of promotional video campaigning has also increased. The faster your content reaches to the customer, the more chances of making a sale.
Web Hosting: Thailand Web Hosting Service industry has also been busy coping with this sudden transformation to online businesses. Since many new companies and products have been added to the network server, a lot of rescheduling and optimization have been done. Companies are investing big, to have an optimized and tuned site.
Increase in the Demand for Logistics and Workforce: To meet the growing demand for website services and logistics, an increase in demand of IT-related professionals’ has increased. A considerable rise in the demand of logistic suppliers was also seen.
Rise in Digital Streaming Subscription Services: The use of internet-based entertainment platforms has seen a good increase in its active users. As most of the population has been locked indoors, people continuously seek new entertainment modes.
Decrease in Online Travel Bookings: Thailand can be predominantly described as a travellers’ paradise with about 12% of the share in Thailands’ GDP. Most of these bookings are made online. Since the pandemic crisis, more than 75% of online bookings have been reduced.
Covid based planning: Businesses are now planning their future decisions by keeping in mind the Covid scenario, as no one knows when things will operate in a normal way. More attention is given to the digital aspect of things. To be precise all organizational activities are aligned to run in a virtual mode of operation, and all future planning is biased to a digital approach.
Increase in the Sales of B2B and B2C Businesses: Since the arrival of the pandemic, Thailands’; B2B and B2C sectors have seen a significant rise, developing foundations for a more healthy and direct customer–manufacturer relation, opening new doors for online businesses.
The Way Forward
The effects of the Pandemic have been felt globally. However, the financial and social effects vary from country to country. As the rest of the world, businesses in Thailand have also suffered. Using the digital stick, the country has transformed its business structure to the ‘online’ way. Big transformations in organizational structure and strategies have been seen. Furthermore, are in the pipeline. It seems that the aftereffects of Covid will develop the foundation of a digital kingdom, particularly in South Asia.