Food and Drink E-Commerce in Thailand

PROSPECTS

Convenience key to the development of food and drink e-commerce

Food and drink e-commerce continued to see dynamic growth in current value terms in 2019, with this set to continue over the forecast period. The channel has been relatively slow to develop but as more grocery retailers establish an e-commerce channel consumers are becoming more familiar with the benefits of shopping for food and drink online.

Expansion into secondary areas key to the development of the channel

At the end of the review period food and drink e-commerce was largely confined to urban areas where consumers typically have greater purchasing power and are more tech savvy. However, in line with other areas of e-commerce, players in this channel are aware of the need to expand into secondary locations to make the most of the market potential.

New businesses pop up around food and drink e-commerce

Thai supermarkets have looked to improve the service they provide by making it easier for consumers to arrange delivery via mobile apps. For example, Villa Market collaborated with honestbee to provide delivery services to consumers via a mobile app.

COMPETITIVE LANDSCAPE

Lazada launches LazMart, its online supermarket

In August 2019, Lazada opened LazMart with it selling supermarket products including dried food and fresh food. The new service started with dried food as its delivery system found its footing.

Central Food Retail collaborates with GrabFood for Valentine’s Day offer

Central Food Retail, a leading player in premium supermarkets, collaborated with food delivery service GrabFood to launch its new campaign ‘Chocolate Love Delivery by GrabFood X Tops Campaign’ for Valentine’s Day 2019. As part of this campaign consumers were able to order specially designed chocolates and gift sets from Tops through the GrabFood delivery app for delivery to loved ones.

Villa Market creates loyalty programme for online platform

Villa Market, a leading chain of supermarkets in Thailand collaborated with Siam Commercial Bank to develop a loyalty programme on its existing online platform at the end of the review period. Thanks to an increased online consumer base in excess of 50,000 customers, Villa Market created ‘Loyalty point and VPlus Wallet’ to allow consumers to top-up their digital wallet and redeem loyalty points for other promotional products.

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