The e-commerce industry is one of the largest markets in the world. The industry has experienced a dramatic increase over the past couple of years, and the pandemic pushed it to an all-time high.
Global retail e-commerce sales reached an all-time high of 16.4% in 2021 as countries were on lockdown and stores were forced to close their doors, according to data from McKinsey & Co. Sales in retail e-commerce in 2021 were around $4.9 trillion in 2021, and this figure is projected to increase by 50% over the next five years to reach approximately $7.4 trillion by 2025.
Leaders In The Space
According to an article by Inside Monkey, in 2021 the Chinese e-commerce giant Alibaba Group Holdings Ltd. BABA was first in terms of online retail sales as its subsidiaries Taobao.com and Tmall.com accounted for 15% and 14% of the global market, respectively. The Seattle-based e-commerce company Amazon.com Inc. AMZN came in second, taking 13% of global retail sales.
In terms of monthly traffic in 2022, Amazon ranks first, with a monthly traffic average of about 3.13 billion visitors, followed by eBay Inc. EBAY with 596 million and Walmart Inc. WMT with 571 million.
Regions Experiencing Significant E-Commerce Growth
E-commerce growth in Southeast Asia stands out more than in any other region in the world. The region is expected to experience a 20.6% expansion in 2022, with sales reaching $89.67 billion from $74.36 billion in 2021. E-commerce in the region is expected to pass $100 billion by 2023.
Following Southeast Asia is Latin America, which is the only region to pass the 20% mark this year.
Insight Into Thailand’s E-Commerce Market
Thailand’s 18% growth in retail e-commerce sales in 2022 puts it on the top-ten list of countries that are expected to experience the largest increase in retail e-commerce sales growth. Several factors, including increased internet usage, improved logistics and e-payment systems as well as government policies are some of the drivers fueling this growth.
At 79.5%, Thailand’s internet penetration is one of the highest in the world. As of 2020, the number of internet users in the country was around 54 million, and the figure is expected to reach 60 million by 2026.
The Thai government’s policy, Thailand 4.0, included allocating a budget for the construction of a broadband network across all villages in the country. This plan is expected to increase internet penetration in the country even more and promote modern economic development through e-commerce.
The government also plans to create digital application platforms with the goal of promoting online activities such as e-marketplaces, e-payments and e-government.
SoPa Enters Thailand’s E-Commerce Market
Society Pass Inc. SOPA, an acquisition-focused e-commerce holding company, believes it is growing by leaps and bounds to become one of the giants of e-commerce in Southeast Asia. The company has already set up shop in Vietnam, Indonesia, the Philippines and Singapore and now looks to expand its digital ecosystem in the region with its latest acquisition of the Thai company Thoughtful Media Group.
Thoughtful Media is a social e-commerce business focused on multi-platform networks operating in the U.S., Vietnam and the Philippines. The company distributes digital advertising campaigns in the U.S. and Southeast Asia through its platform. Advertisers take advantage of Thoughtful Media’s wide network of influencers to reach out to more people with their advertising campaigns.
SoPa believes this acquisition will help the company bolster its e-commerce ecosystem and retail partners. SoPa reports having a large number of brands shifting to Thoughtful Media’s platform because of the impact that influencers have on consumers’ decisions.
SoPa intends to expand its presence by acquiring emerging technology companies across different countries. In 2022, the company expects to spend more than $20 million in acquisitions.
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