Mobile Commerce: Explosive Sales Channel in Thailand

Posted by | February 05, 2014 | Press Release

Mobile for Browsing, Desktop for Buying in Thailand
Mobile for Browsing, Desktop for Buying in Thailand

Download Full HD Infographic here

After 2 months aCommerce and LINE’s Mobile Commerce Case Study Reveals Hot Trends and Insights into the Thai E-Commerce Market

aCommerce, the regional end-to-end e-commerce service provider for retailers in Southeast Asia, released its Mobile Commerce Case Study today with Naver Corperation, LINE, which includes the data of over 5.5 million smart phone users in Thailand.

The Case Study reveals important insights into Thai mobile purchasing behavior through an analysis of the LINE ‘Flash Sale’ campaign–an exclusive product offering available for a short period of time using the country’s most popular social messaging app, which boasts 22 million users.

Since the Flash Sale’s launch in mid-December there have been eight sales in total, with roughly one taking place per week for two months. Brands such as Maybelline and luxury beauty partner Kiehl’s participated, using the mobile platform as an innovative space to reveal a new product or to offer never seen before discounts as done by Kiehl’s .

The data has been compiled into an infographic and highlights important consumer data such as the demographics of online shopping, hot product categories, mobile versus desktop behavior and top phone brands used in mobile shopping. The internal data provided by aCommerce suggests that Flash Sales are setting a new purchasing trend in the Thai market and that the future of mobile commerce is poised for growth.

“One of the benefits of working with an end-to-end solutions provider like aCommerce is that we are sitting on a trove of data,” Thailand CEO Tom Srivorakul said, “And the marketing benefit of Big Data are immense, giving our clients a distinct advantage of both marketing and selling to consumers.”

Especially in the realm of mobile commerce in Southeast Asia, a relatively new endeavor, the data is proving more valuable than ever for all parties.

“Thanks to this data we and the brands we partner with we are able to pin point exactly what products to launch and what to avoid when engaging in mobile commerce in the region,” Regional CMO Sheji Ho responded, “What was most surprising to us was how well high price point items sold. We believe this is driven by the fact that customers have the option to pay via cash on delivery (COD), which reduces the perceived risk for the customer and also enables brands to target customers in regions with lower credit card penetration. At aCommerce we accommodate to regional specific challenges by offering innovative COD solutions.”

Key Findings from Case Study

  • Brands that partnered with aCommerce and LINE had direct access to the hands of 8.8% of the Thai population through 5.5 million subscribers to the LINE sale channel.
  • 42.6% of orders came from outside of Bangkok.
  • The ‘Young professional’ demographic (25-34) make up 37% or the majority of users who subscribed for LINE Flash Sales.
  • Consumers were most responsive to the food & beverage Flash Sale, which sold out in under 5 minutes.
  • As common with higher price point items, luxury brand Kiehl’s sold less volume but largest profit margins were gained, indicating that luxury items and mobile shopping are highly compatible.
  • Most views on average came from Samsung users (46%).
  • 70% of purchases came from Apple devices.
  • Mobile is critical for viewing but desktop still plays a major role in purchases in Thailand with only 5% viewing on desktop but 42% of all transactions made on desktop and or PCs.
  • 20,000 people were shopping and browsing at one time, vastly more than any bricks and mortar shopping capacity.

Learnings from Case Study

  • Thailand is a hotbed for mobile commerce. With almost 1/10 of the population willingly inviting sales into their phones (unlike telco’s that bombard customers with unrequested texts), the market is proving eager for mobile commerce through messaging apps.
  • Effective penetration to second and third tier cities. With over 42% of sales outside of the capital, mobile commerce is a cost-effective and efficient sales distribution channel for nationwide reach.
  • Cash on Delivery is a critical payment method in Southeast Asia. The massive reach the sale had outside of Bangkok (42%) where credit card penetration is famously low may have been made possible by COD.
  • Demographics matter. Items that appealed to both males and females and 25-34 age demographic performed strongest, such as food and beverage voucher from BBQ Plaza and luxury health and beauty products from Kiehl’s.
  • Mobile user experience is essential. There are still many roadblocks to mobile commerce in Southeast Asia as demonstrated by the immense proportion who decided to view on mobile but to purchase on desktop. As such, aCommerce is dedicated to further optimizing the mobile user experience.

While the Flash Sale data is still relatively new in Thailand, it nonetheless offers an important first glimpse into mobile purchasing behavior in Southeast Asia. aCommerce is excited to offer the possibility for brands to leverage this data into powerful marketing strategies.

Download Full HD Infographic here

About aCommerce

Listed by JWT and Tech in Asia as ‘Top Trends to Look for in 2014,’ aCommerce is a regional e-commerce service provider on a mission to break the logistics bottleneck of Southeast Asia. Founded in May 2013, we are based out of Thailand and with offices and distribution centers in Indonesia, Thailand and Singapore.The company provides end-to-end retail solutions including e-commerce platform design and development, order fulfillment and warehousing, delivery and logistics, customer service call centers, creative production and channel management.

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Information contained in this press release, other than historical information, may be considered forward-looking in nature. Forward-looking statements are subject to various risks, uncertainties and assumptions. aCommerce disclaims any intention or obligation to update or revise any forward-looking statement whether as a result of new information, future events or otherwise.

Media Contact: Felicia Moursalien, Corporate Marketing,